UPSC CARE Mains Practice 18th September 2025
Topic – Sustainability of economic growth in India
Q1. Can productivity alone be the key to faster growth? Discuss in the context of employment, demand, and sustainability of economic growth in India. (15 marks, 250 words)
Introduction
Productivity growth is often hailed as the engine of economic expansion since it enables higher output from the same set of inputs. However, the sustainability of growth cannot be explained by productivity alone. In economies like India, where employment and income distribution significantly shape aggregate demand, productivity-driven growth—if divorced from job creation—can aggravate inequality, weaken demand, and make growth unsustainable in the long run.
Body
- Productivity and Employment Linkages
- Demand-side Consequences of Productivity Gains
- Role of Employment in Growth Sustainability
- Limitations of Productivity-Only Strategy
- Policy Implications
Conclusion
Productivity is a vital driver of economic efficiency, but productivity without employment is a hollow growth path. For India, sustainable growth requires harmonising productivity gains with job creation, wage growth, and inclusive demand expansion. Only when productivity is embedded in a broad-based, employment-oriented growth strategy can it act as a true catalyst for long-term development.
UPSC Syllabus
Sustainability of economic growth in India
Why was this question asked?
Q. Is inclusive growth possible under market economy? State the significance of financial inclusion in achieving economic growth in India. [2022]
Introduction
Productivity growth is often hailed as the engine of economic expansion since it enables higher output from the same set of inputs. However, the sustainability of growth cannot be explained by productivity alone. In economies like India, where employment and income distribution significantly shape aggregate demand, productivity-driven growth—if divorced from job creation—can aggravate inequality, weaken demand, and make growth unsustainable in the long run.
Body
Productivity and Employment Linkages
- Capital-intensive bias: Productivity rises often stem from automation and mechanisation, which raise output but reduce employment elasticity.
- Jobless growth: Rising GDP without parallel job creation decouples output from livelihoods, leading to weak demand.
- Labour redundancy: Displacement of workers curtails household purchasing power, undermining the demand-side contribution to growth.
Demand-side Consequences of Productivity Gains
- Income concentration: Higher productivity disproportionately benefits skilled workers and entrepreneurs.
- Decline in mass demand: A small rise in elite incomes cannot compensate for widespread income losses among workers.
- Sustainability challenge: Growth driven by a narrow consumption base leads to cyclical demand shocks and instability.
Role of Employment in Growth Sustainability
- Employment as a demand stabiliser: Broad-based job creation raises effective demand, driving long-term expansion.
- Empirical evidence: Studies show employment growth contributes more to output variance than output growth itself.
- Wage growth: Enhances aggregate demand and provides a multiplier effect for consumption-driven growth.
Limitations of Productivity-Only Strategy
- Inequality trap: Skewed income distribution fuels social unrest and political resistance to reforms.
- Adverse external effects: Over-reliance on capital-intensive imports and resource distortions can worsen balance-of-payments.
- Inflationary misalignment: Price incentives or mild inflation may temporarily boost supply, but long-term growth depends more on employment expansion than on productivity gains alone.
Policy Implications
- Inclusive growth strategies: Focus on labour-intensive sectors such as manufacturing, agro-processing, and services.
- Skill upgradation: Aligning productivity gains with employability through education and vocational training.
- Wage and demand augmentation: Strengthen minimum wages, rural employment guarantees, and social safety nets.
- Balanced technology adoption: Encourage productivity without excessive labour displacement, using “appropriate technology” models.
Conclusion
Productivity is a vital driver of economic efficiency, but productivity without employment is a hollow growth path. For India, sustainable growth requires harmonising productivity gains with job creation, wage growth, and inclusive demand expansion. Only when productivity is embedded in a broad-based, employment-oriented growth strategy can it act as a true catalyst for long-term development.
Topic – Supreme Court’s interim order on the 2025 Waqf law
Q 2. What is the significance of the Supreme Court’s interim order on the 2025 Waqf law? On what grounds was the law challenged? Which provisions did the Court uphold, and on which did it impose a stay? What are the implications for minority rights? (15 marks, 250 words)
Introduction
The Waqf (Amendment) Act, 2025, intended to reform the administration of waqf properties, triggered widespread debate due to concerns of excessive state control over religious institutions. Multiple petitions challenged its constitutionality under Articles 25, 26, and 30 of the Indian Constitution. On 15 September 2025, the Supreme Court issued an interim order, upholding certain provisions while staying others, thereby balancing state interests in transparency with minority rights in religious autonomy.
Body
- Grounds of Challenge
- Provisions Stayed by the Court
- Provisions Upheld
- Significance of the Interim Order
- Implications for Minority Rights
Conclusion
The Supreme Court’s interim order on the 2025 Waqf law reflects a calibrated judicial approach—acknowledging the state’s interest in preventing misuse of waqf lands, while upholding minority communities’ right to manage their religious endowments. The final judgment will likely have a lasting impact on defining the balance between religious autonomy and regulatory oversight in India’s constitutional framework.
UPSC Syllabus
Minority rights
Why was this question asked?
Q. Examine the scope of Fundamental Rights in the light of the latest judgement of the Supreme Court on Right to Privacy. (2017)
Introduction
The Waqf (Amendment) Act, 2025, intended to reform the administration of waqf properties, triggered widespread debate due to concerns of excessive state control over religious institutions. Multiple petitions challenged its constitutionality under Articles 25, 26, and 30 of the Indian Constitution. On 15 September 2025, the Supreme Court issued an interim order, upholding certain provisions while staying others, thereby balancing state interests in transparency with minority rights in religious autonomy.
Body
Grounds of Challenge
- Violation of Religious Autonomy: Petitioners argued that empowering District Collectors to decide property disputes infringed Article 26, which guarantees the right to manage religious affairs.
- Arbitrary Religious Qualification: The five-year practice requirement for creating waqf was challenged as discriminatory and intrusive into matters of faith.
- Inclusion of Non-Muslims: Allowing non-Muslims on Waqf Boards and Councils was seen as dilution of minority control, allegedly violating Article 30.
- Encroachment on Judicial Domain: Vesting quasi-judicial powers in executive officials contradicted the doctrine of separation of powers.
Provisions Stayed by the Court
- Collector’s Powers (Section 3C): Stayed, as property ownership disputes must be settled by courts/tribunals, not executive officers.
- Automatic Divestment of Waqf Status: Suspended, deemed “prima facie arbitrary.”
- Five-year Practice of Islam Clause: Temporarily stayed until rules are framed, preventing arbitrary policing of religious identity.
- Non-Muslim Representation Cap: Limited to 4 in Central Waqf Council and 3 in State Boards.
Provisions Upheld
- Abolition of “Waqf by User”: Upheld prospectively, citing past misuse to encroach on government lands.
- Mandatory Registration of Properties: Retained, as digital records enhance transparency and accountability.
- Applicability of Limitation Act, 1963: Confirmed, to bring waqf disputes in line with general property law principles.
- Ownership Requirement: Only property owned by the dedicator can be endowed, consistent with Islamic jurisprudence.
Significance of the Interim Order
- Judicial Balancing Act: The Court recognized legislative intent for reform while safeguarding minority rights from arbitrary state intrusion.
- Reinforcement of Separation of Powers: Stayed provisions highlight that questions of property ownership fall within judicial competence.
- Interim Relief: Ensures waqf custodians are not dispossessed, but also bars creation of third-party rights until final adjudication.
- Clarification on Tribal and Heritage Lands: Affirmed that protected tribal and heritage lands cannot be declared waqf.
Implications for Minority Rights
- Protection of Autonomy: Upholding community rights in managing waqf institutions strengthens Article 26 and Article 30 safeguards.
- Risk of Religious Policing: The five-year practice clause, though temporarily suspended, raises concerns of executive intrusion into personal faith.
- Inclusive Oversight vs. Autonomy Debate: Limiting non-Muslim participation balances inclusivity with minority self-governance.
- Precedent for Future Reforms: The order signals that reforms must be constitutionally sensitive, ensuring accountability without eroding religious freedoms.
Conclusion
The Supreme Court’s interim order on the 2025 Waqf law reflects a calibrated judicial approach—acknowledging the state’s interest in preventing misuse of waqf lands, while upholding minority communities’ right to manage their religious endowments. The final judgment will likely have a lasting impact on defining the balance between religious autonomy and regulatory oversight in India’s constitutional framework.