GS Paper 3 practice questions for UPSC Mains 2026.

Introduction: Combined Centre-State tax-GDP ratio ~17-18%; Centre alone ~11.7% (Economic Survey 2024-25); OECD average ~34%.

Body: 1) Narrow direct tax base — ~8 crore filers, less than 2 crore pay. 2) GST structure — rate rationalisation pending; cess sunset. 3) Compliance leakages, exemptions, exclusions (petroleum, real estate).

Way forward: GoM on GST rate rationalisation under GST Council Article 279A; Direct Tax Code roll-out; widen TDS net and use AIS-based nudges by CBDT.

Introduction: 16th Finance Commission under Arvind Panagariya was constituted in December 2023 for the award period 2026-31; 15th FC retained vertical devolution at 41%.

Body: 1) 15th FC — 41% vertical share, 2011 Census + demographic performance weight. 2) Issues — cesses and surcharges erode divisible pool (~18-20%), GST compensation sunset, off-budget borrowing by states. 3) Article 280 mandate and grants-in-aid under Article 275.

Way forward: Rationalise cesses; revise FRBM debt path for states; institutionalise GST Council and Finance Commission interface.

Introduction: Indian Space Policy 2023 demarcates roles of ISRO (R&D), IN-SPACe (regulator-promoter), NSIL (commercial arm) and NGEs (private entities); India's space economy is targeted at $44 bn by 2033 (IN-SPACe Decadal Vision).

Body: 1) Policy enablers — 100% FDI under automatic route (revised 2024), GST relief, technology transfer norms. 2) Achievements — SpaDeX docking, EOS-08, Agnikul Cosmos, Skyroot Vikram-S. 3) Gaps — Space Activities Bill pending, IP and liability law, venture capital depth.

Way forward: Enact Space Activities Bill in 2026; expand IN-SPACe Technology Transfer Centre; deepen ANIC and venture financing under DPIIT.

Introduction: Biological Diversity (Amendment) Act 2023 streamlines ABS, exempts AYUSH practitioners and codified traditional knowledge; India is one of 17 mega-diverse countries hosting 7-8% of global recorded species (NBA Annual Report 2023-24).

Body: 1) Three-tier structure — NBA, SBBs, BMCs and the People's Biodiversity Register. 2) 2023 Amendment — narrower ABS for domestic users, faster IP approvals, Section 36A reforms. 3) Critiques — dilution risk, AYUSH exemption breadth.

Way forward: Strengthen NBA capacity; integrate the Nagoya Protocol; align with WIPO Genetic Resources Treaty 2024.

Introduction: CERT-In reported over 22 lakh cyber incidents in 2024 (Annual Report); India ranked 10th in ITU Global Cybersecurity Index 2024 (Tier 1).

Body: 1) Institutions — CERT-In (MeitY), NCIIPC under NTRO, I4C under MHA, NCSC, Defence Cyber Agency. 2) Laws — IT Act 2000, DPDP Act 2023, Section 70 CII regime, draft Digital India Act. 3) Gaps — sector-specific CSIRTs limited, attribution lag, OT and IoT exposure.

Way forward: Operationalise Digital India Act; expand NCIIPC sectoral coverage; mandate PQC migration timeline per CERT-In; ratify Budapest Convention dialogue.

Introduction: NITI Aayog completed ten years in January 2025; replaced the 1950-vintage Planning Commission as the Centre's apex policy think tank.

Body: 1) Mandate shift — cooperative federalism via Governing Council, SDG India Index, Aspirational Districts. 2) Wins — Multidimensional Poverty Index decline (135 million out of poverty 2013-23), composite indices, e-Amrit. 3) Gaps — no allocative powers, weak monitoring of state programmes, advisory fatigue.

Way forward: Empower NITI Aayog with statutory backing under Article 263; institutionalise outcome-budget linkages with Ministry of Finance; strengthen Development Monitoring and Evaluation Office (DMEO).

Introduction: Gender Budget Statement first published with Union Budget 2005-06; Budget 2025-26 allocates ₹4.49 lakh crore (~6.8% of total outlay) across Parts A (women-specific) and B (pro-women).

Body: 1) Architecture — Gender Budgeting Cells in 57 ministries, MWCD nodal. 2) Programmes — Mission Shakti, Beti Bachao Beti Padhao, Nirbhaya Fund, Lakhpati Didi. 3) Limits — outlay vs outcome, Part B accounting, exclusion of unpaid care.

Way forward: Adopt Part C for fully gender-mainstreamed schemes; link to SDG 5 indicators; outcome budget integration.

Introduction: Union Budget 2025-26 pegs capex at ₹11.21 lakh crore (3.1% of GDP), up from 1.7% in FY20; effective capex (incl. grants in aid) at ₹15.48 lakh crore.

Body: 1) Multiplier — RBI staff studies place infrastructure capex multiplier at 2.45x within four years. 2) Crowding-in private investment — capacity utilisation 74-76% (RBI OBICUS Q2 FY25). 3) Crowding-out concerns — high G-Sec yields, state capex slippage. 4) Quality — front-loading, absorptive capacity, PFMS lags.

Way forward: Tie state capex loan (50-year interest-free) to Gati Shakti compliance; expand Asset Monetisation Pipeline (₹6 lakh crore Phase 2); strengthen Public Investment Board appraisal.

Introduction: SEBI Annual Report 2023-24 records demat accounts crossing 18 crore; mutual fund AUM ₹68 lakh crore (Mar 2025 AMFI); India moved to T+1 (Jan 2023) and optional T+0 (Mar 2024).

Body: 1) Market infrastructure — T+0 pilot, ASBA for secondary, SCORES 2.0. 2) Retail participation — SIP inflows >₹26,000 crore/month; F&O risk (SEBI study Sep 2024: 93% retail F&O traders lose money). 3) Reforms — Investor Charter, OFS to retail, REIT/InvIT framework.

Way forward: Suitability framework for derivatives; expand financial literacy via SEBI's investor education fund; risk-based supervision of UCBs in equity participation.

Introduction: Sagarmala Programme (2015) under MoPSW lists 839 projects worth ₹5.8 lakh crore; major ports handled 819 MT in FY24 (IPA data); Vadhavan greenfield port approved Jun 2024.

Body: 1) Port modernisation — Indira Container Terminal, Vizhinjam transshipment commissioned 2024. 2) Connectivity — coastal economic zones, Inland Waterways NW-1. 3) Constraints — turnaround time (gap with Singapore), dredging, multi-modal interface.

Way forward: Operationalise Maritime India Vision 2030 (₹3 lakh crore investments); PPP under Major Port Authorities Act 2021; integrate with PM Gati Shakti for hinterland connectivity.

Introduction: Indian Railways capex ₹2.65 lakh crore in Budget 2025-26; Amrit Bharat Station Scheme covers 1,309 stations on PPP/EPC mix; HAM widely used in NH but limited in rail.

Body: 1) Station redevelopment — Rail Land Development Authority bids for Nagpur, Gwalior, Ayodhya. 2) Dedicated Freight Corridors mostly EPC; PPP for terminals (PFTs, GCT). 3) Constraints — risk allocation, ridership guarantee, RVNL/IRCON role overlap.

Way forward: Adopt Kelkar Committee 2015 risk-allocation matrix; institutionalise Public Private Partnership Appraisal Committee (PPPAC); allow viability gap funding for transformative corridors.

Introduction: PMKSY-Per Drop More Crop covers 87.5 lakh hectares (MoAFW Dashboard Mar 2025); potential 70 million hectares; agriculture uses 78% of India's water (NITI Composite Water Management Index 2019).

Body: 1) Modes — drip and sprinkler, subsidies up to 55% for small farmers. 2) Constraints — fragmented holdings (avg 1.08 ha, Agricultural Census), credit access, free power-water nexus. 3) Micro Irrigation Fund under NABARD ₹5,000 crore corpus.

Way forward: Scale MIF Phase-II (₹5,000 cr top-up); link drip subsidy to crop diversification; integrate with PM-KUSUM solar pumps; expand Atal Bhujal Yojana behavioural piece.

Introduction: e-NAM launched 14 April 2016; SFAC dashboard records 1,389 mandis across 23 states/UTs and 1.78 crore registered farmers (Mar 2025); cumulative trade ₹3.43 lakh crore.

Body: 1) Architecture — Platform of Platforms (since 2022) with private mandi software integration. 2) Bottlenecks — APMC reform reversal in states, weak assaying labs, logistics, inter-state trade <1%. 3) Standing Committee on Agriculture 2023 noted lab-to-payment lag.

Way forward: Push Model APMC Act 2017 and Model Contract Farming Act 2018 to states; expand BHIM-UPI integration; FPO onboarding under 10,000 FPO mission.

Introduction: Central Sector Scheme '10,000 FPOs' launched Feb 2020 with ₹6,865 crore outlay; SFAC dashboard records 9,500+ FPOs registered (Mar 2025); 22,000 gramin haats targeted for upgradation under GrAMs (Gramin Agri Markets) since 2018.

Body: 1) FPOs aggregate produce, access institutional credit (NABARD equity grant), bargain with retailers. 2) Gramin haats upgrade weighed under MGNREGA convergence to last-mile markets. 3) Constraints — leadership capacity, credit linkages, low e-NAM onboarding (~3,500 FPOs).

Way forward: Equity Grant Fund expansion via SFAC; FPO-led custom hiring centres; integration with e-NAM and ONDC agri pilots.

Introduction: Open-ended procurement — government commits to buy all marketed surplus offered at MSP; FCI rice/wheat stocks (Apr 2025) at ~57 MT vs strategic buffer norm 21.04 MT.

Body: 1) Distortions — paddy-wheat lock-in in Punjab-Haryana; groundwater stress, ecological damage. 2) Fiscal — Food subsidy ₹2.03 lakh crore Budget 2025-26. 3) Storage — open-CAP storage losses (CAG 2023 noted ₹6,000+ crore wastage estimates).

Way forward: Cap procurement at buffer norms with Decentralised Procurement; price-deficiency payment for excluded crops; nutrition-sensitive PDS with millets.

Introduction: MoEFCC office memorandum (March 2022) exempts SDN-1 and SDN-2 edits without foreign DNA from Rules 1989 GM-organism regulation; backed by DBT 2022 guidelines for safety assessment of genome-edited plants.

Body: 1) Science — SDN-1 no template (knock-out), SDN-2 small template (point edits), SDN-3 large insert (transgene). 2) Implications — Kamala and Pusa DST Rice 1 (4 May 2025) released under SDN-1 exemption; faster regulatory pathway. 3) Concerns — civil-society challenge to exemption; lack of segregation in seed system.

Way forward: Statutory backing via Biotechnology Regulatory Authority Bill; mandatory PPV&FR Act 2001 registration of edited varieties; transparent biosafety dossiers.

Introduction: DST Research and Development Statistics 2024 records gross expenditure on R&D (GERD) at ~0.65% of GDP, against China's 2.4% and South Korea's 4.9%; Anusandhan National Research Foundation Act 2023 envisages ₹50,000 crore over five years (₹14,000 crore government, ₹36,000 crore private).

Body: 1) Structural gap — private R&D under 40% of GERD vs 75-80% in OECD; weak university research; thin patent commercialisation. 2) ANRF design — PM as ex-officio President; mission-mode grants; private co-funding model. 3) Frontier areas — semiconductor design, AI, quantum, biotech connected via deep-tech start-up policy 2025.

Way forward: Operationalise ANRF governance board; expand SERB consolidated into ANRF; mandatory CSR-R&D channelisation; raise GERD to 2% by 2030.

Introduction: Drone Rules 2021 (MoCA, 25 August 2021) replaced restrictive 2018 framework; PLI for drones outlay ₹120 crore over three years (FY22-24); domestic drone market valued at ~US$1.4 billion in 2024.

Body: 1) Policy stack — Digital Sky platform, type certification by QCI, NPNT (No Permission, No Take-off). 2) Achievements — Namo Drone Didi scheme (15,000 drones to women SHGs), Garuda Aerospace, ideaForge. 3) Security risks — IAF drone strike Jammu airbase 2021; counter-drone systems by DRDO.

Way forward: Counter-Unmanned Aircraft Systems policy; spectrum allocation for BVLOS; export controls for dual-use components; strict licensing of foreign-origin components.

Introduction: COP28 UAE Consensus (13 December 2023) called for "transitioning away from fossil fuels in energy systems" and tripled renewables target; Loss and Damage Fund operationalised under World Bank; COP29 Baku (Nov 2024) agreed New Collective Quantified Goal of US$300 billion/year by 2035.

Body: 1) India's stand — defended developmental space, opposed phase-out language; CBDR-RC principle. 2) Finance gap — NCQG US$300 billion vs developing-country need of US$1.3 trillion. 3) Just Energy Transition Partnerships excluded India.

Way forward: Demand mobilisation roadmap by 2026; push for Article 9 grants vs loans; advocate fossil-fuel subsidy reform with carve-outs for developing countries.

Introduction: Van (Sanrakshan Evam Samvardhan) Adhiniyam 2023 notified December 2023; India's updated NDC commits to an additional carbon sink of 2.5-3 billion tonnes CO2e by 2030.

Body: 1) Key changes — exemption for security infrastructure within 100 km of borders, linear projects up to 10 ha, eco-tourism. 2) Judicial review — SC interim order in Ashok Kumar Sharma vs Union (Feb 2024) applied Godavarman "dictionary meaning" of forest. 3) Carbon-sink impact — risk of denotifying deemed forests reduces sink target.

Way forward: Notify rules implementing SC "dictionary meaning" definition; state-wise deemed-forest inventory in 6 months; mandatory compensatory afforestation audits under CAMPA Act 2016; align with NDC.