UPSC Essentials | Mains answer practice — GS 3 : Questions on domestic agricultural protection and financial inclusion (Week 121)

QUESTION 1

Discuss the rationale behind India’s high tariffs and prohibition on genetically modified (GMO) corn imports from the US. How do these measures balance domestic agricultural protection and food security?

QUESTION 2

Discuss how a unified digital insurance marketplace can help deepen insurance penetration and promote financial inclusion.

General points on the structure of the answers for UPSC Mains

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: Discuss the rationale behind India’s high tariffs and prohibition on genetically modified (GMO) corn imports from the US. How do these measures balance domestic agricultural protection and food security?

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

Introduction:

— Corn is the most widely farmed crop in the United States, and the majority of it is GMO. Most GMO maize is engineered to resist insect pests or herbicides. Bacillus thuringiensis (Bt) maize is a genetically modified maize that generates proteins that are poisonous to specific insect pests but not to humans, pets, cattle or other animals.

— Out of India’s total corn (maize) imports of 0.97 million tonnes (mt) in 2024-25, a major chunk came from Myanmar (0.53 mt) and Ukraine (0.39 mt). Some quantity was also imported from the US, but it was minuscule at 1,100 tonnes.

Body:

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

— There are two reasons why India’s corn imports aren’t much. The first has to do with tariffs. India allows up to 0.5 mt of corn imports annually at 15%, with quantities beyond that attracting 50% duty. Secondly, it does not permit any import of corn that is genetically modified (GMO).

— These conditions are major irritants for the US, which is the world’s biggest producer as well as exporter of corn. During 2024-25 (October-September), the US produced 377.63 mt and exported 71.70 mt of the cereal grain that is used as a source of energy-providing carbohydrates for poultry and livestock, and also as a feedstock for making fuel and industrial-grade ethanol.

— For the US, India is a huge potential market for corn, given its rising consumption of animal products – milk, eggs, fish and meat – with an increase in population and per capita GDP that would, in turn, drive demand for feed and ingredients such as maize and soyabean meal.

— The problem is that an estimated 94% of its total area planted to corn in 2024 was under GM varieties. These incorporate genes from bacteria that code for proteins enabling the crop to “tolerate” the application of chemical herbicides such as glyphosate and glufosinate or resist attacks by specific insect pests.

— India, at present, neither permits the import of GM corn nor its planting by farmers here. One proposal that was mooted in a now-withdrawn NITI Aayog report has been to allow GM maize imports exclusively for use as a feedstock for manufacturing fuel ethanol. Such maize would, then, not enter the food chain, whether directly or as milk, eggs and meat coming from cattle and poultry birds fed on the grain.

Conclusion:

— In a recent report, the US Department of Agriculture has projected India’s domestic corn consumption to climb from 34.7 mt in 2022-23 to 98 mt in 2040 and 200.2 mt in 2050 under a scenario of “rapid” per capita income growth of 6.6% per year. It would go up less – to 62.5 mt in 2040 and 93 mt in 2050 – if the annual income growth is “moderate” at 4.6%. Meeting that demand would require imports of 46 mt and 134 mt in 2040 and 2050, respectively, under the “rapid” and 11 mt and 26 mt under the “moderate” income growth scenarios.

(Source: India US corn trade: Why does India not import corn from the US?)

Points to Ponder

Read more about trade between India and the US

Read more about GMO crops

Related Previous Year Questions

Explain the factors influencing the decision of the farmers on the selection of high value crops in India. (2025)

Given the vulnerability of Indian agriculture to vagaries of nature, discuss the need for crop insurance and bring out the salient features of the Pradhan Mantri Fasal Bima Yojana (PMFBY). (2016)

QUESTION 2: Discuss how a unified digital insurance marketplace can help deepen insurance penetration and promote financial inclusion.

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

Introduction:

— Bima Sugam, envisioned as the world’s largest online marketplace for insurance products and services, was announced by the Bima Sugam India Federation (BSIF) with the unveiling of its official website.

— The BSIF clarified that the rollout of the platform’s features will follow a phased approach. Initially, the website will serve as an information and guidance hub, while full-fledged transactions will be enabled over the coming months as insurers and ecosystem partners complete necessary integrations. This approach will also give the insurance ecosystem adequate time to adapt to the new system.

Body:

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

— Bima Sugam, initiated by Irdai, is being hailed as a groundbreaking initiative in the global insurance industry. While many countries have digital channels for insurance, the creation of a single, unified marketplace of this scale is unprecedented.

— The idea is simple but ambitious: all insurance needs — life, health, and general insurance, including motor, travel, property, and agricultural policies — can be accessed on one platform.

— Bima Sugam is a unified digital marketplace for insurance, designed to bring insurers, intermediaries, and customers onto a single platform. Through it, users can buy, sell, service, renew, manage, and even claim insurance policies with ease and full transparency. Policy documents will also be securely stored on the platform. In many ways, Bima Sugam functions for insurance the way UPI and NPCI do for digital payments—providing a common infrastructure that benefits all stakeholders.

— The charges for using the platform are minimal, and importantly, all insurance companies are members of the system. Most of them also hold equity stakes in the Bima Sugam India Federation (BSIF), which operates the platform.

— This sets Bima Sugam apart from private players, which mainly act as distributors. These firms sell policies but do not provide claim settlement or end-to-end servicing. They also earn significant commissions from customers, unlike the low-cost, integrated model of Bima Sugam.

Conclusion:

— The Irdai described the launch as the first visible step in creating India’s Digital Public Infrastructure (DPI) for insurance — a foundation that could redefine how citizens access financial protection.

— The initiative to the larger national vision of ‘Insurance for All by 2047’, part of the Prime Minister’s mission of Viksit Bharat 2047.

(Source: Bima Sugam portal launched: Single digital marketplace for all kinds of insurance)

Points to Ponder

Read more about Bima Sugam

Read about financial inclusion

Related Previous Year Questions

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

Pradhan Mantri Jan Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional finance fold. Do you agree with this for financial inclusion of the poor section of the Indian society? Give arguments to justify your opinion. (2016)

Previous Mains Answer Practice

UPSC Essentials: Mains answer practice — GS 3 (Week 120)

UPSC Essentials: Mains answer practice — GS 3 (Week 119)

UPSC Essentials: Mains answer practice — GS 2 (Week 120)

UPSC Essentials: Mains answer practice — GS 2 (Week 119)

UPSC Essentials: Mains answer practice — GS 1 (Week 119)

UPSC Essentials: Mains answer practice — GS 1 (Week 120)

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