BharatNotes Why this chapter matters for UPSC: Markets and market regulation are core GS3 topics — agricultural marketing (APMC, MSP, eNAM), market failures and government intervention, consumer protection law, and India's engagement with the WTO are all direct Prelims and Mains topics. GS2 links appear in competition regulation (CCI), consumer rights, and the politics of farm laws. Understanding market structures also provides analytical vocabulary for economic policy analysis.
PART 1 — Quick Reference Tables
| Market Structure | Sellers | Product | Price Control | Indian Example |
|---|---|---|---|---|
| Perfect Competition | Many | Identical | None (price-takers) | Wheat, rice in competitive mandis |
| Monopoly | One | Unique | Complete | Indian Railways (passenger; now partly opening) |
| Oligopoly | Few large | Similar/differentiated | Significant | Telecom (Jio, Airtel, Vi, BSNL); Auto (Maruti, Hyundai, Tata, M&M) |
| Monopolistic Competition | Many | Differentiated | Some | Restaurants, clothing brands, FMCG |
| Monopsony | One buyer | — | — | Govt procuring defence equipment |
| Type of Market Failure | Description | Policy Response |
|---|---|---|
| Public goods | Non-excludable, non-rival; market won't provide | Government provision (defence, lighthouses) |
| Externalities | Costs/benefits not reflected in price | Pigouvian tax/subsidy; regulation (pollution norms) |
| Information asymmetry | Seller knows more than buyer | Disclosure norms, ratings, certifications (BIS, FSSAI) |
| Natural monopoly | Single provider most efficient (networks) | Regulation (TRAI for telecom, CERC for power) |
| Merit goods | Market underprovides; social benefits exceed private | Subsidised provision (education, health) |
| Key Agricultural Market Institution | Full Form / Purpose |
|---|---|
| APMC | Agricultural Produce Market Committee — state body regulating mandis |
| MSP | Minimum Support Price — floor price guaranteed by govt to farmers |
| eNAM | Electronic National Agriculture Market — online platform linking ~1,400 mandis |
| FCI | Food Corporation of India — procures and stores grain at MSP |
| Farm Laws 2020 | Three laws allowing farmers to sell outside APMC; repealed Nov 2021 |
PART 2 — Detailed Notes
What Is a Market?
Market: Any mechanism through which buyers and sellers interact to exchange goods or services at mutually agreed prices. Markets need not be physical places — they can be online platforms, phone networks, or bilateral negotiations. What defines a market is the interaction between supply (sellers) and demand (buyers) to determine prices and quantities.
Markets are the central institution of a capitalist/mixed economy. They aggregate information about millions of individual preferences and production costs into price signals that guide resource allocation.
Markets exist for every type of economic resource: goods markets (vegetables, cars, phones), labour markets (employment), capital markets (stocks, bonds, loans), foreign exchange markets (trading currencies), and commodity markets (crude oil, gold, wheat — traded on exchanges like MCX, NCDEX in India).
Types of Markets by Competition
Perfect competition is the ideal economists use as a benchmark — many small sellers, identical products, free entry/exit, and perfect information. No single buyer or seller can influence the price; all are "price-takers." Agricultural commodity markets approximate this (though imperfectly — cartels, storage, and government intervention all affect prices).
Monopoly means a single seller with no close substitutes. Indian Railways holds a near-monopoly in long-distance rail passenger transport. Public utilities (water, electricity distribution in a city) were historically monopolies — now being opened to competition. Monopolies can exploit consumers by raising prices or reducing quality; hence the need for regulation.
Oligopoly — a few large sellers — is the most common market structure in modern industrial economies. India's telecom sector (Jio, Airtel, Vodafone Idea/Vi, BSNL) and automobile sector (Maruti Suzuki, Hyundai, Tata Motors, Mahindra & Mahindra dominate) are oligopolies. Oligopolists may collude (cartel behaviour, which is illegal under the Competition Act, 2002 enforced by the Competition Commission of India / CCI) or compete vigorously on price and quality.
UPSC GS3 — Competition Regulation:
The Competition Commission of India (CCI) was established under the Competition Act, 2002 and became operational in 2009. It prevents anti-competitive agreements (cartels, price-fixing), abuses of dominant position (predatory pricing to kill competitors), and regulates mergers and acquisitions that could harm competition. CCI has investigated major tech companies (Google, Amazon), cement producers, and airlines. The Competition (Amendment) Act, 2023 introduced deal-value thresholds for merger notifications and settlement/commitment provisions.
Local and Rural Markets
Haat (Weekly Rural Market): Periodic markets held once or twice a week at a fixed location, rotating through nearby villages. India has approximately 47,000 weekly rural markets (haats). They are crucial for tribal and rural economies — the primary venue for small farmers and artisans to sell produce and buy necessities. Haats function as social spaces as well as economic ones, reinforcing community ties.
Many government schemes — TRIFED's tribal marketing initiatives, Gram Swaraj Abhiyan — work through haat infrastructure.
APMC (Agricultural Produce Market Committee) system: State governments set up regulated wholesale markets (mandis) where farmers must sell notified agricultural commodities only through licensed commission agents (arhatiyas). The system was designed to protect farmers from exploitation by providing regulated weighing, grading, and payment. However, it created a powerful intermediary class — multiple layers of middlemen between farmer and consumer, each taking a cut. Many states have a single-point levy, but the multiplicity of mandis and inter-state trade restrictions fragment the national agricultural market.
eNAM (Electronic National Agriculture Market): An online trading platform launched in 2016 that connects farmers, traders, and buyers across approximately 1,400 mandis in 23 states and UTs (as of 2024). Farmers can discover prices across mandis and sell to the highest bidder, reducing intermediaries. However, adoption remains uneven — infrastructure, connectivity, and resistance from commission agents are barriers.
Farm Laws 2020 and their repeal: The central government passed three farm laws in September 2020 that allowed farmers to sell agricultural produce outside APMC mandis (to any buyer, anywhere), enabled contract farming, and deregulated certain commodities from the Essential Commodities Act. Massive farmer protests — centred in Punjab and Haryana, with farmers blocking highways at Delhi's borders for over a year — led PM Modi to announce the repeal of all three laws in November 2021. The protests reflected fears (especially among prosperous farmers with APMC access) about losing MSP protection and the regulated market system.
Market Failures and Government Intervention
Markets are efficient mechanisms but they fail in specific, predictable ways:
Public Goods: Goods that are non-excludable (you can't prevent non-payers from using them) and non-rival (one person's use doesn't reduce availability to others). National defence, street lighting, and public parks are examples. No private firm can profitably supply public goods because they cannot exclude free-riders. Hence government must provide them through taxation.
Externalities: Costs or benefits that fall on parties outside the market transaction. A factory that pollutes a river imposes costs on downstream communities not reflected in the product's price — a negative externality. Markets produce "too much" of goods with negative externalities. The policy response: Pigouvian tax (tax equal to the social cost, named after economist A.C. Pigou); carbon pricing for greenhouse gas emissions is a modern application.
Information Asymmetry: Sellers typically know more about their product's quality than buyers. In the used-car market (Nobel laureate George Akerlof's "Market for Lemons," 1970), buyers can't distinguish good cars from bad — so they offer average prices, driving out good-quality sellers. Result: market fails. Policies: mandatory disclosure (SEBI prospectus requirements), consumer ratings, government certification (FSSAI for food, BIS for products), insurance regulation (to prevent adverse selection).
Consumer Protection
UPSC GS2 — Consumer Protection Act, 2019:
The Consumer Protection Act, 2019 replaced the 1986 Act and significantly modernised India's consumer protection framework:
- Covers e-commerce transactions (new in 2019 Act)
- CCPA (Central Consumer Protection Authority): Can take suo motu action against unfair trade practices; recall products; impose penalties; issue safety notices
- Product liability: Manufacturers/sellers can be held liable for defective products causing harm
- Mediation: Alternative dispute resolution for faster settlement
- Three-tier quasi-judicial system: District Consumer Commission → State Commission → National Consumer Disputes Redressal Commission (NCDRC) (New Delhi)
BIS Gold Hallmarking: The Bureau of Indian Standards made gold hallmarking mandatory from June 2021 (initially for 14, 18, and 22 carat gold). Hallmarked jewellery bears a six-digit alphanumeric HUID (Hallmark Unique Identification) number, allowing consumers to verify purity. This protects consumers from underkaratage fraud.
Maximum Retail Price (MRP): India's MRP system (mandated under Legal Metrology Act, 2009) requires manufacturers to print the maximum price on packaged goods — retailers cannot charge above this. This is relatively unique globally and protects consumers from arbitrary pricing.
Globalisation and Markets
WTO (World Trade Organisation): Established January 1, 1995, replacing GATT (General Agreement on Tariffs and Trade, 1947). Headquartered in Geneva, Switzerland. The WTO governs international trade rules, provides a dispute settlement mechanism, and negotiates trade liberalisation. India is a founding WTO member. WTO has 166 member countries (as of 2024).
Key India-WTO tensions: India strongly defends its right to subsidise food and agriculture under the "Peace Clause" (agreed at Bali 2013) — the USA and EU argue India's MSP/FCI procurement constitutes trade-distorting subsidies above WTO limits. The Doha Development Round (launched 2001) remains stalled, partly due to disagreement on agricultural subsidies.
India's trade policy combines liberalisation (WTO commitments, bilateral FTAs) with industrial promotion. Recent FTAs: India-UAE Comprehensive Economic Partnership Agreement (CEPA), 2022; India-Australia Economic Cooperation and Trade Agreement (ECTA), 2022; India-UK Comprehensive Economic and Trade Agreement (CETA), signed July 24, 2025 (agreement in principle reached May 6, 2025).
Production Linked Incentive (PLI) Schemes: Launched 2020 onwards across 14 sectors (mobile phones, pharmaceuticals, solar PV, textiles, auto, etc.) to attract investment and boost domestic manufacturing. Part of the Atmanirbhar Bharat (Self-Reliant India) and Make in India policy framework.
[Additional] Digital Markets and Payments — India's Fintech Revolution
UPSC GS3 — Digital Economy and Payments Infrastructure:
UPI (Unified Payments Interface): Developed by NPCI (National Payments Corporation of India) and launched in 2016, UPI enables real-time interbank money transfers using a mobile app.
Scale (FY 2024-25):
- 185.8 billion transactions processed — up 41% year-on-year (NPCI)
- Total value: ₹261 lakh crore (~$3.1 trillion)
- India accounts for ~49% of all real-time digital payments globally, making it the #1 country for real-time payments (ACI Worldwide Real-Time Payments Report 2025)
UPI Internationalisation:
- UPI is now accepted in 7 countries: UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius
- India is targeting acceptance in 20 countries by 2028–29 (RBI Annual Report 2024-25)
- UPI-PayNow (Singapore) and UPI-BUNA (Gulf) linkages enable cross-border remittances at near-zero cost
e-Rupee (Digital Rupee / CBDC): The Central Bank Digital Currency (CBDC) — called e-Rupee (₹) — was launched by RBI in two phases:
- Wholesale pilot: November 2022
- Retail pilot: December 2022 (expanded to 16 banks)
- As of March 2025: ~6 million (60 lakh) registered users; ₹1,016 crore in circulation; transactions processed daily on the retail CBDC platform
- Programmable payments: e-Rupee can be embedded with rules (e.g., government subsidy can only be used for specified purchases) — a key policy advantage over physical cash
- India is one of the most advanced countries globally in CBDC deployment (alongside China's e-CNY and Nigeria's eNaira)
Why UPI matters for UPSC: Digital payments link directly to financial inclusion (Jan Dhan-Aadhaar-Mobile / JAM Trinity), tax formalisation (GST + digital trail), DBT (Direct Benefit Transfer), and India's global fintech leadership narrative.
[Additional] 5a. India-UK CETA 2025 — India's First G7 Free Trade Agreement
The chapter covers international trade and markets but predates the landmark India-UK Comprehensive Economic and Trade Agreement (CETA), signed on July 24, 2025 — India's first Free Trade Agreement with a G7 nation and a Western economy. After 14-15 rounds of negotiations spanning over three years (January 2022 – May 2025), this deal reshaped India's trade relationships with developed economies and is a top current affairs anchor for UPSC 2025-26.
Key Terms — India-UK CETA:
| Term | Meaning |
|---|---|
| CETA (Comprehensive Economic and Trade Agreement) | A broad bilateral trade deal covering goods, services, digital trade, government procurement, and intellectual property — more comprehensive than a simple Free Trade Agreement (FTA); India-UK CETA has 26 chapters |
| Agreement in Principle (AiP) | A political declaration that the main terms of a deal are agreed, pending legal scrubbing and formal signing; India-UK AiP reached May 6, 2025 |
| Tariff line | Each specific product code in the customs tariff schedule; India committed to eliminate/reduce tariffs on 90% of tariff lines (64% from Day 1) |
| Scotch Whisky tariff | A major UK demand; India's import duty on Scotch: 150% → 75% (immediately upon entry into force) → 40% by 2035 (10-year phased reduction) |
| ISDS | Investor-State Dispute Settlement — a mechanism allowing foreign companies to sue governments in international arbitration; excluded from India-UK CETA (replaced by government-to-government dispute settlement — Chapter 29) |
| Rules of Origin | Conditions a product must meet to qualify for preferential tariff treatment; India-UK CETA includes rules of origin to prevent third-country goods from being routed through either country to avail FTA benefits |
[Additional] India-UK CETA 2025 — Key Facts for UPSC (GS2 — India and Bilateral Relations / GS3 — Trade):
Timeline:
- Negotiations began: January 2022 (announced by PM Modi and PM Boris Johnson)
- Rounds completed: 14-15 rounds over ~3 years 4 months
- Agreement in Principle (AiP): May 6, 2025 (announced by PM Modi and PM Keir Starmer)
- Formal signing: July 24, 2025 at Chequers, UK (India: Commerce Minister Piyush Goyal; UK: Trade Secretary Jonathan Reynolds; PM Modi and PM Starmer present)
India's commitments to UK:
| Category | Detail |
|---|---|
| Overall tariff coverage | Eliminates/reduces tariffs on 90% of tariff lines (64% from Day 1 of implementation) |
| Scotch whisky | 150% → 75% immediately → 40% by 2035 (over 10 years) |
| Cars (British) | 100-110% → 10% in-quota over 5 years (limited quota, not blanket) |
| Chocolate | 33% → 0% over 7 years |
| Cheese | Excluded (sensitive agricultural product — no tariff concession) |
UK's commitments to India:
| Category | Detail |
|---|---|
| Overall tariff coverage | 99% of Indian tariff lines eliminated (99.6% by trade value, largely Day 1) |
| Textiles and garments | Zero duty from Day 1 (1,143 tariff lines) — critical for Indian exporters |
| Pharmaceuticals | 56 key pharmaceutical tariff lines reduced to zero (Indian generic pharma gains) |
| IT/ITeS services | Expanded market access for Indian tech professionals and software exporters |
| Gems and jewellery | Zero duty from Day 1 |
| Basmati rice | Duty-free access |
Structural features of the deal:
| Feature | Detail |
|---|---|
| Chapters | 26 chapters including goods, services, digital trade, government procurement, IPR |
| ISDS | Not included — govt-to-govt dispute settlement only (Chapter 29); major win for India's policy autonomy |
| First of its kind | India's first FTA with a G7 nation; first with a major Western/European economy |
| Labour mobility | Mode 4 services commitments — Indian professionals can provide services in UK more easily |
Trade data:
| Metric | Figure |
|---|---|
| India-UK bilateral trade (goods + services) | ~USD 53.5–57 billion (2024) |
| Target post-CETA | USD 120 billion by 2030 |
| UK GDP boost (HM Treasury estimate) | £4.8 billion per year (long-run) |
| India's export gain (CETA impact) | NITI Aayog/GTRI estimate: USD 5-10 billion additional annual exports in 5 years |
UPSC synthesis: India-UK CETA = GS2 bilateral relations + GS3 trade policy. Key exam facts: AiP = May 6 2025; signed July 24 2025 at Chequers; 14-15 rounds Jan 2022–May 2025; first G7/Western FTA; 26 chapters; India = 90% tariff lines reduced (64% Day 1); UK = 99% Indian tariff lines; Scotch whisky 150%→75%→40% by 2035; UK cars 100-110%→10% in-quota 5 years; cheese excluded; no ISDS (govt-to-govt Chapter 29); textiles zero duty Day 1; bilateral trade ~USD 53.5-57B; target USD 120B by 2030. Prelims trap: AiP (May 2025) ≠ signing date (July 2025); cheese was EXCLUDED (not covered); ISDS is NOT part of the agreement; the deal is with UK post-Brexit — it is NOT an EU-India FTA.
[Additional] 5b. MSP 2024-25, PM-AASHA Revamp 2024, and the Swaminathan Formula Gap
The chapter explains the concept of Minimum Support Price (MSP) as a government price guarantee but provides no current data and omits the PM-AASHA mechanism that operationalises MSP procurement, and the ongoing controversy about the Swaminathan formula (MSP at 1.5× C2 cost vs the government's practice of 1.5× A2+FL). These are among the highest-frequency agricultural policy topics in UPSC GS3.
Key Terms — MSP and PM-AASHA:
| Term | Meaning |
|---|---|
| MSP (Minimum Support Price) | A government-set floor price for agricultural commodities, above which the government commits to procure at that price if market prices fall below it; announced by Cabinet Committee on Economic Affairs (CCEA) |
| A2+FL cost | Cost of production = A2 (all paid-out costs: seeds, fertilizers, pesticides, hired labour, irrigation, machinery hire) + FL (family labour imputed at prevailing wages); government formula: MSP = at least 1.5× A2+FL |
| C2 cost | Comprehensive cost = A2+FL + imputed rent on owned land + interest on owned capital; Swaminathan Commission (2006) recommended MSP at 1.5× C2; government uses A2+FL not C2 — this is the core farmer demand |
| PM-AASHA | Pradhan Mantri Annadata Aay SanraksHan Abhiyan — umbrella scheme launched September 2018 to ensure farmers receive MSP; revamped September 18 2024 with expanded budget of Rs.35,000 crore |
| PSS (Price Support Scheme) | Component of PM-AASHA: government agencies (NAFED, NCCF) directly procure commodities at MSP when market prices fall below MSP |
| PDPS (Price Deficiency Payment Scheme) | Component of PM-AASHA: government pays farmers the difference between MSP and market price directly to their bank accounts (no physical procurement; limit = market price must not fall below 85% of MSP) |
| PSF (Price Stabilisation Fund) | Integrated into PM-AASHA (September 2024 revamp) — manages buffer stocks of pulses, oilseeds, onion, tomato to stabilise consumer prices |
| MIS (Market Intervention Scheme) | Component of PM-AASHA for perishables like fruits and vegetables (not covered under MSP) — state requests Centre for price support when prices crash |
[Additional] MSP 2024-25 and PM-AASHA — UPSC Data and Policy (GS3 — Agriculture / Farmer Welfare):
MSP rates — Kharif 2024-25 (Cabinet June 19, 2024):
| Crop | MSP 2024-25 (₹/quintal) | A2+FL cost | C2 cost | % above A2+FL | % above C2 |
|---|---|---|---|---|---|
| Paddy (common) | 2,300 | 1,533 | 2,008 | 50.0% | 14.5% |
| Paddy (Grade A) | 2,320 | — | — | — | — |
| Cotton (medium) | 7,121 | 4,751 | 6,205 | 50.0% | 14.8% |
| Cotton (long) | 7,521 | — | — | — | — |
| Bajra | 2,625 | 1,750 | — | 50.0% | — |
| Tur (Arhar) | 7,550 | — | — | — | — |
| Moong | 8,682 | — | — | — | — |
| Groundnut | 6,783 | — | — | — | — |
MSP rates — Rabi 2024-25 (Cabinet October 18, 2023):
| Crop | MSP (₹/quintal) | Year-on-year increase |
|---|---|---|
| Wheat | 2,275 | +150 (vs 2,125 in Rabi 2023-24) |
| Gram (Chickpea) | 5,440 | +210 |
| Masur (Lentil) | 6,425 | +425 |
| Rapeseed/Mustard | 5,650 | +300 |
| Barley | 1,735 | +115 |
The MSP formula controversy:
| Formula | Coverage | Who uses it | What it means |
|---|---|---|---|
| A2+FL | Paid-out costs + family labour | Government of India (since 2018 commitment) | MSP = 1.5× A2+FL (50% profit over paid-out costs) |
| C2 | A2+FL + imputed rent on land + interest on owned capital | Swaminathan Commission (2006) recommended | MSP = 1.5× C2 (50% profit over comprehensive cost) |
- For Paddy 2024-25: A2+FL = ₹1,533; MSP = ₹2,300 = 1.5× A2+FL ✓ (government claim met)
- But C2 = ₹2,008; MSP = ₹2,300 = only 1.145× C2 (only 14.5% above comprehensive cost — NOT 50% above C2)
- Swaminathan Commission: Final Report submitted October 2006 (5 volumes); recommended C2+50% to ensure farmers can cover land rent, working capital interest, and all family costs
- Farmer unions' core demand: legal guarantee of MSP at 1.5× C2 (not A2+FL)
- Government position (as of 2026): MSP is not legally guaranteed; it remains an administrative decision — no law enacted
PM-AASHA — structure and revamp:
| Aspect | Details |
|---|---|
| Launch | September 2018 (PM Modi; 3 original components: PSS + PDPS + PDMCS) |
| Revamp | September 18, 2024 (Cabinet approval) |
| New total outlay | Rs.35,000 crore (15th Finance Commission cycle, up to 2025-26) |
| Procurement guarantee | Rs.45,000 crore combined procurement commitment |
| Components (post-2024) | 4 components: PSS + PDPS + PSF (newly integrated) + MIS |
How PSS vs PDPS works:
| Scheme | Trigger | Mechanism | Example |
|---|---|---|---|
| PSS | Market price < MSP | NAFED/NCCF physically buy from farmers at MSP | Tur (Arhar) procurement in MP when prices crashed below MSP |
| PDPS | Market price < MSP | Farmer sells in market; govt transfers difference to bank account | Piloted for oilseeds; deficiency capped when market > 85% of MSP |
| MIS | Perishables (tomato, onion) | State requests Centre; threshold price set; not part of MSP | Tomato Mission 2023; onion export ban 2023 |
Nodal agencies under PM-AASHA:
- NAFED (National Agricultural Co-operative Marketing Federation): pulses, oilseeds, copra
- NCCF (National Co-operative Export Limited / National Cooperative Exports): expanded role 2023 onward
- CCI (Cotton Corporation of India): cotton under PSS
- FCI (Food Corporation of India): wheat and paddy (not under PM-AASHA directly — under NFSA/buffer norms)
UPSC synthesis: MSP = GS3 agriculture. Key exam facts: Kharif 2024-25 MSP Paddy = Rs.2,300/q; Cotton medium = Rs.7,121/q; Rabi 2024-25 Wheat = Rs.2,275/q (Rs.150 increase); MSP formula = 1.5× A2+FL (government practice NOT C2); Swaminathan Commission final report = October 2006 = recommended 1.5× C2; PM-AASHA launched September 2018; revamped September 18 2024 = Rs.35,000 crore; 4 components post-2024 = PSS + PDPS + PSF + MIS; PSF integrated in 2024 revamp; MSP has NO legal status (administrative); PDPS cap = market price not below 85% of MSP; nodal agencies = NAFED + NCCF (new role) + CCI (cotton). Prelims trap: Government MSP = 1.5× A2+FL (NOT C2); Swaminathan recommended C2 (NOT implemented); PM-AASHA was revamped in 2024 (NOT a new scheme); PSS involves physical procurement (PDPS does not); cheese was excluded from India-UK CETA (separate fact, don't confuse).
Exam Strategy
Prelims traps:
- WTO established = 1995 (not 1947 — GATT was 1947); headquarters = Geneva (not New York or Brussels)
- CCI established under Competition Act, 2002 (operational 2009)
- eNAM was launched in 2016 — not APMC itself (APMC laws are state-level, not central)
- BIS gold hallmarking mandatory = June 2021
- Farm Laws repealed = November 2021 (announced November 19, 2021 by PM Modi)
- India's MRP system is governed by Legal Metrology Act, 2009 (not Consumer Protection Act)
- UPI (2016): Developed by NPCI; India = ~49% of global real-time payments (FY24-25); 185.8 billion transactions — #1 globally for real-time payments
- e-Rupee = RBI's CBDC (not UPI, not cryptocurrency); retail pilot from December 2022; programmable payments feature
- UPI internationalisation: 7 countries as of 2025; target 20 by 2028-29 — do not quote outdated 4-country figure
Mains angles:
- APMC reform: why it is necessary, why it is politically difficult
- Market failures framework: enumerate types with Indian policy examples
- WTO and agricultural subsidies: India's position and the Peace Clause
- Consumer Protection Act 2019: new features vs 1986 Act
- PLI schemes: rationale, sectors, early results
Practice Questions
Prelims:
With reference to the e-National Agriculture Market (eNAM), which of the following is correct?
(a) It is managed by the Ministry of Agriculture and Farmers Welfare without any state involvement
(b) It is an online trading platform that connects APMC mandis to enable farmers to sell to any registered buyer
(c) It replaces physical APMC mandis entirely
(d) It covers only horticulture produceThe World Trade Organisation (WTO) was established in:
(a) 1947
(b) 1991
(c) 1995
(d) 2001
Mains:
- "Agricultural marketing in India is hampered by fragmented markets, excessive intermediation, and inadequate infrastructure." Examine the role of eNAM and other reforms in addressing these challenges. (CSE Mains 2020, GS Paper 3, 15 marks)
- Discuss the concept of market failure. How does the government intervene to correct market failures in India, with specific reference to externalities and public goods? (CSE Mains 2019, GS Paper 3, 15 marks)
