Mains Practice Questions for the Day
- Q. Prime Minister’s recent austerity call reflects concerns over India’s external sector vulnerability. Discuss in the context of gold imports, crude oil dependence, foreign travel outflows and essential imports.
- Q. Rural connectivity has the potential to transform physical access into social and economic opportunity. Examine the role of Pradhan Mantri Gram Sadak Yojana in promoting inclusive rural development. How can PMGSY-IV strengthen last-mile connectivity in vulnerable and backward regions?
Q. Prime Minister’s recent austerity call reflects concerns over India’s external sector vulnerability. Discuss in the context of gold imports, crude oil dependence, foreign travel outflows and essential imports.
(GS Paper III: Indian Economy, External Sector and Energy Security)
Introduction:
India’s external sector is facing pressure due to falling forex reserves, high crude oil prices, rising gold imports, FII outflows and high foreign travel spending. In this context, the Prime Minister urged citizens to reduce non-essential foreign exchange outflows and support self-reliance.
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Major Sources of Pressure
Gold imports have risen sharply, reaching nearly $72 billion in 2025–26. Since India imports most of its gold, household gold purchases increase dollar demand and can widen the current account deficit.
Crude oil is another major vulnerability because India imports about 89% of its oil needs. High and volatile oil prices due to the West Asia conflict can increase import bills, weaken the rupee and raise inflation.
Foreign travel under the Liberalised Remittance Scheme has also become a major source of forex outflow. Rising foreign vacations and overseas weddings add to external pressure.
Essential imports such as edible oils and fertilisers also create vulnerability. Edible oils are daily necessities, while fertilisers are linked to agriculture and food prices. Disruptions in West Asia can affect fertiliser imports and LNG supplies used in domestic production.
Significance of the Austerity Call
The appeal promotes responsible consumption, forex conservation and self-reliance. Measures such as using public transport, EVs, work-from-home, postponing gold purchases, reducing edible oil use and promoting natural farming can reduce import pressure.
Way Forward
India should popularise the Gold Monetisation Scheme, encourage public transport and EVs, reduce non-essential foreign travel, strengthen domestic production, promote balanced fertiliser use and boost inbound tourism. Citizen behaviour must be supported by structural reforms.
Conclusion:
India’s external sector vulnerability is linked not only to global shocks but also to domestic consumption patterns. A combination of citizen austerity, domestic capacity-building and self-reliance can help protect forex reserves and strengthen macroeconomic stability.
Q. Rural connectivity has the potential to transform physical access into social and economic opportunity. Examine the role of Pradhan Mantri Gram Sadak Yojana in promoting inclusive rural development. How can PMGSY-IV strengthen last-mile connectivity in vulnerable and backward regions?
( GS Paper II – Governance, Welfare Schemes, Rural Development and Social Justice)
Introduction:
Rural connectivity is not only about building roads. It converts physical access into social and economic opportunity. The Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched in 2000 as a Centrally Sponsored Scheme to provide all-weather road connectivity to unconnected rural habitations. Its 25-year journey highlights the role of roads in rural transformation.
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PMGSY and Inclusive Rural Development
- Access to Basic Services
- PMGSY connects villages with schools, health centres, markets, employment centres and public services. This improves access to education and healthcare, especially for women, children, elderly people and remote communities.
- Rural Economic Integration
- Better rural roads help farmers reach agricultural markets more easily. This reduces transport difficulties, improves market access and strengthens the rural economy.
- Welfare Delivery and Emergency Services
- Road connectivity improves the delivery of government schemes, emergency medical services and administrative outreach in rural areas.
- Security and Development in LWE Areas
- In Left Wing Extremism affected areas, road connectivity supports both security mobility and socio-economic development. It helps bring remote habitations into the mainstream development process.
PMGSY-IV and Last-Mile Connectivity
- Connecting Unconnected Habitations
- PMGSY-IV covers the period 2024–25 to 2028–29. It aims to connect 25,000 unconnected rural habitations and proposes construction of 62,500 km of rural roads with an outlay of ₹70,125 crore.
- Focus on Vulnerable Regions
- PMGSY-IV gives special attention to tribal areas, Aspirational Districts and Blocks, desert areas, North-Eastern and Himalayan regions.
- Convergence with Tribal Schemes
- Its convergence with PM-JANMAN and Dharti Aaba Janjatiya Gram Utkarsh Abhiyan can improve road access for tribal and backward habitations.
- Technology and Sustainability
- The use of OMMAS, e-MARG, GPS tracking, PM Gati Shakti portal and PMGSY Gram Sadak Survey App can improve planning, monitoring and maintenance. Green technologies such as waste plastic, fly ash, cold mix technology and bio-engineering can make rural roads more sustainable.
Conclusion:
PMGSY has transformed village roads into pathways of prosperity, dignity and inclusion. PMGSY-IV can deepen this impact by combining last-mile connectivity with technology, sustainability and targeted support for vulnerable regions.
