Mains Practice Q&A — Fiscal Federalism in India (March 2025 Yojana)

🧭 Thematic Focus:

• GS Paper: (e.g., GS Paper 2 – Governance & Polity)
• Yojana Edition: March 2025
• Category: Monthly Summaries → Yojana Summaries → March 2025
• Tags: Fiscal Federalism, Union Budget 2025, Finance Commission, Cooperative Federalism

❓ Mains Practice Question (250 Words)

🖋 Q1. Discuss how India’s roadmap for becoming a developed nation by 2047 integrates deregulation, manufacturing, energy security, and institutional collaboration to drive inclusive growth.

(Word Limit: 250)

🖊️ Suggested Model Answer:

Answer:
India’s ambition to become a developed nation by 2047 is shaped by strategic economic and policy reforms. The Union Budget and policy documents emphasize four critical pillars: deregulation, manufacturing, energy security, and tripartite institutional collaboration.

Deregulation aims to reduce the compliance burden on businesses and promote entrepreneurial growth. The simplification of tax regimes, decriminalization of over 300 laws, and creation of a High-Level Regulatory Reforms Committee signal a trust-based governance model.

Manufacturing is central to employment generation and structural transformation. Production Linked Incentive (PLI) schemes have expanded across key sectors like electronics, semiconductors, and textiles. MSME financing through TReDS and Credit Guarantee Schemes ensures inclusive industrial participation.

Energy security is pursued through a pragmatic transition. Nuclear energy targets of 100 GW by 2047, expansion of renewable capacity, and circular economy models like LiFE align growth with environmental sustainability.

The tripartite compact—Government, Industry, and Academia—plays a pivotal role. While the government ensures funding and policy support, industry focuses on responsible automation, and academia leads innovation and research alignment.

Despite challenges such as land and labor rigidity, this comprehensive roadmap incorporates global lessons while addressing local needs. It reflects a long-term vision where growth is not just faster, but also more inclusive, sustainable, and future-ready.

📌 Keywords for Enrichment:

Keywords for Enrichment:

• Viksit Bharat @2047
• Deregulation reforms
• Trust-based governance
• Production Linked Incentive (PLI) Scheme
• MSME Ecosystem (TReDS, Credit Guarantee)
• National Manufacturing Mission
• Energy Security (Nuclear, Green Hydrogen, LiFE)
• Tripartite Compact: Government–Industry–Academia
• Mittelstand Model (Germany)
• Sustainable Inclusive Growth
• Atmanirbhar Bharat
• Ease of Doing Business

🔍 GS Paper Mapping

• GS Paper 2 – Governance, Centre–State relations
• GS Paper 3 – Budgeting, Public Finance

🪔 Closing Whisper:

“True federalism is not just shared power — it is shared purpose.” 🌿