UPSC Essentials | Mains answer practice — GS 3 : Questions on dark web and India’s trade (Week 110)

QUESTION 1

“India’s trade narrative has shifted from ‘visible’ goods to ‘invisible’ services and remittances.” Discuss.

QUESTION 2

Discuss how the dark web poses an evolving challenge to cybersecurity and internal security in India.

General points on the structure of the answers

Introduction

— The introduction of the answer is essential and should be restricted to 3-5 lines. Remember, a one-liner is not a standard introduction.

— It may consist of basic information by giving some definitions from the trusted source and authentic facts.

Body

— It is the central part of the answer and one should understand the demand of the question to provide rich content.

— The answer must be preferably written as a mix of points and short paragraphs rather than using long paragraphs or just points.

— Using facts from authentic government sources makes your answer more comprehensive. Analysis is important based on the demand of the question, but do not over analyse.

QUESTION 1: “India’s trade narrative has shifted from ‘visible’ goods to ‘invisible’ services and remittances.” Discuss.

Note: This is not a model answer. It only provides you with thought process which you may incorporate into the answers.

Introduction:

— International trade is typically connected with the movement of physical products put aboard ships, either in bulk unpackaged cargo or in standard-sized containers.

— But trade is more than just the movement of tangible goods across national borders by sea and air. It also refers to the global movement of services, people, capital, data, and ideas.

— In India’s external balance of payments, the “invisibles” trade (export and import of services, as well as cross-border private person money transfers) now exceeds the “visible” merchandise trade account.

Body:

You may incorporate some of the following points in your answer:

— Between 2003-04 and 2013-14, India’s exports of goods increased about fivefold, from $66.3 billion to $318.6 billion. After that, it flattened out and dipped below $300 billion by 2020-21, before rising significantly to $429.2 billion in 2021-22 and $456.1 billion in 2022-23.

— However, after 2022-23, India’s goods exports fell again, to $441.4 billion in 2023-24 and $441.8 billion in 2024-25.

— On the other hand, receipts from “invisible” transactions – those that do not include the export of actual commodities – have shown a consistent, if not remarkable, increase over the previous two decades or more. In gross terms, these increased roughly 4.5 times between 2003-04 and 2013-14 (from $53.5 billion to $233.6 billion), and another 2.5 times to $576.5 billion in 2024-25.

— A breakdown of India’s gross invisible revenues of $576.5 billion in 2024-25 indicates $387.5 billion in service exports, up from $26.9 billion in 2003-04 and $151.8 billion in 2013-14.

— Private transfers or remittances have also been a significant source of invisible income ($135.4 billion). This is money sent by Indians working and residing overseas, whether temporarily or permanently, including foreign citizens. The dollars, pounds, and dirhams remitted are effectively proceeds from India’s human resource exports.

— Private transfers have also increased dramatically, from $22.2 billion in 2003-04 to $69.6 billion in 2013-14, though not at the same rate as services exports. The latter has been principally driven by software service exports, which increased from $12.8 billion in 2003-04 to $69.5 billion in 2013-14 and $180.6 billion in 2024-25. The export of miscellaneous “business, financial, and communication services” is also significant, growing from $37.5 billion in 2013-14 to $118 billion in 2024-25.

Conclusion:

— Accountants, auditors, financial analysts, research and development specialists, management consultants, and computer data storage providers are among those who export their services.

— All of these “invisible” exports appear to be relatively unaffected by global business cycles, financial crises, pandemics, geopolitical conflicts, or tariff wars. And they have flourished despite little government effort to finalise bilateral trade deals or disclose production-linked incentive schemes.

(Source: ‘Invisible hand’ in India’s foreign trade)

Points to Ponder

Read more about balance of payment

Read about visible and invisible exports

Related Previous Year Questions

What is the status of digitalization in the Indian economy? Examine the problems faced in this regard and suggest improvements. (2023)

Is inclusive growth possible under market economy? State the significance of financial inclusion in achieving economic growth in India. (2022)

QUESTION 2: Discuss how the dark web poses an evolving challenge to cybersecurity and internal security in India.

Note: This is not a model answer. It only provides you with thought process which you may incorporate into the answers.

Introduction:

— The dark web is a secret portion of the internet that cannot be found using standard search engines and requires specific tools or browsers to reach. Unlike open web browsers such as Firefox, Google, and Yahoo, which may track user actions via IP addresses, the dark web conceals identities, providing a haven for those seeking privacy or anonymity.

— The idea of an encrypted, secret component of the internet originated in the 1990s, when the US Naval Research Laboratory developed preliminary versions of The Onion Routing project, subsequently known as Tor. Tor involves embedding encryptions in communication networks, similar to the layers of an onion, with the goal of protecting sensitive government communications shared via the internet.

Body:

You may incorporate some of the following points in your answer:

— It has a history of unlawful activity, including the trade of illicit commodities and cybercrime. Law enforcement faces the difficult task of balancing online privacy with the need to combat crime, showing the intricate interplay of technology, privacy issues, and the changing internet scene.

— Users must download Tor, which is known for its emphasis on user privacy and anonymity. Tor routes connections through a network of randomly selected computers (known as nodes) around the world, encrypting data at each step. This makes tracing virtually impossible.

— Tor does not conduct searches on behalf of the user; instead, the user must actively seek out those black web pages on their own. Marketplaces, forums, and even libraries can be found here, as well as illicit marketplaces selling narcotics, guns, stolen data, and hacking services.

— While the dark web is notorious for criminal transactions, it also has respectable uses. Whistleblowers, journalists, and activists utilise it to communicate securely in hostile environments. Platforms such as SecureDrop enable anonymous disclosures while safeguarding sources from retaliation. In countries with strict internet control, the dark web serves as a lifeline to uncensored information. It is also used by hospitals and other organisations to safeguard their data.

Conclusion:

— Black markets, such as the now-defunct Silk Road, have functioned here, dealing in drugs, counterfeit cash, and malware. These platforms have featured advertisements for stolen financial data, hacking tools, and even contract killers. Law enforcement agencies around the world monitor dark web activities, but the ever-changing encryption technologies make tracing down offenders difficult.

(Source: Kerala engineer held for selling drugs over the internet: What is the ‘dark web’, and is it really all dark?)

Points to Ponder

Read about TOR

Read about cybersecurity

Related Previous Year Questions

What are the internal security challenges being faced by India? Give out the role of Central Intelligence and Investigative Agencies tasked to counter such threats. (2023)

What are the different elements of cyber security? Keeping in view the challenges in cyber security, examine the extent to which India has successfully developed a comprehensive National Cyber Security Strategy. (2022)

Previous Mains Answer Practice

UPSC Essentials: Mains answer practice — GS 3 (Week 108)

UPSC Essentials: Mains answer practice — GS 3 (Week 109)

UPSC Essentials: Mains answer practice — GS 2 (Week 108)

UPSC Essentials: Mains answer practice — GS 2 (Week 109)

UPSC Essentials: Mains answer practice — GS 1 (Week 108)

UPSC Essentials: Mains answer practice — GS 1 (Week 109)

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