For aspirants preparing for the UPSC Civil Services Examination 2026, consistent answer-writing practice is paramount. The latest edition of the UPSC Essentials initiative focuses on two critical topics from the General Studies Paper-3 syllabus, providing a framework to refine analytical skills and structure compelling arguments.
Question 1: The Capital Account and the Weakening Rupee
The recent depreciation of the Indian rupee is a complex economic phenomenon. While many instinctively look at trade deficits, a deeper analysis reveals that shifts in India's capital account have played a more decisive role in the currency's recent slide. Over the past year, the rupee has lost ground against major currencies, including the US dollar, euro, and British pound.
India's external balance of payments presents a structural challenge. Historical data shows that the country has recorded a current account surplus in only four fiscal years since 2000: 2001-02, 2002-03, 2003-04, and the pandemic-affected 2020-21. In all other years, the current account, which tracks trade in goods and services along with international transfers, has remained in deficit.
Dissecting the Balance of Payments
The current account deficit is primarily driven by a consistently negative merchandise trade balance. India's goods trade deficit has exhibited significant volatility, narrowing to around $102 billion in 2020-21 before surging to approximately $286.9 billion in the 2024-25 fiscal year. This widening gap, however, is partially offset by a surplus in 'invisibles' trade—a category encompassing services exports, software earnings, and robust private remittance inflows.
The true pressure point, however, originates from the capital account. This account records flows of foreign investment—both Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI)—along with commercial borrowings and NRI deposits. Recent trends indicate large-scale withdrawals by foreign portfolio investors and a noticeable slowdown in foreign direct investment inflows. This reduction in foreign currency availability, coupled with sustained domestic demand for dollars, has created a supply-demand imbalance, exerting prolonged downward pressure on the rupee's value.
Question 2: Why 'Don't Misuse Antibiotics' Campaigns Fall Short
The second practice question tackles a pressing public health crisis: Antimicrobial Resistance (AMR). Launched on November 18, 2025, the National Action Plan on Antimicrobial Resistance (2025-29) marks India's renewed commitment to combating this threat. A cornerstone of such strategies globally is public awareness, yet conventional campaigns frequently fail to achieve meaningful behavioral change.
Antimicrobial Resistance occurs when pathogens like bacteria evolve to survive the drugs designed to kill them, leading to the emergence of 'superbugs.' While awareness is critical, most campaigns oversimplify this multidimensional problem into generic slogans, undermining their effectiveness.
The Limitations of Simplistic Messaging
Firstly, AMR is not a single epidemic but a constellation of distinct, region-specific challenges. Drug-resistant neonatal sepsis, hospital-acquired carbapenem-resistant infections, and resistant pathogens in poultry and aquaculture each have unique drivers and require tailored communication strategies. A one-size-fits-all message like "Fight AMR" fails to connect with the daily realities of diverse stakeholders—a rural mother, a poultry farmer, or a local pharmacist.
Secondly, these campaigns often rely on moral exhortation, placing the onus solely on individual behavior change—"Don't misuse antibiotics." This ignores the complex structural and systemic drivers of AMR. These include the over-the-counter sale of antibiotics without prescription, weak regulatory enforcement, the use of antibiotics as growth promoters in animal feed, and environmental contamination from pharmaceutical waste. Campaigns that do not address these systemic leaks cannot stem the tide of resistance.
Furthermore, linguistic barriers and poor targeting render many national campaigns ineffective at the grassroots level. To drive real change, communication must clearly specify desired actions—such as seeking accurate diagnosis, completing prescribed courses, and safely disposing of unused drugs—and explain the tangible 'why' behind each action within the local context.
For UPSC aspirants, these questions underscore the need for answers that move beyond surface-level analysis. A compelling response would dissect the nuanced interplay between capital flows and currency valuation, and critically evaluate public policy implementation, recognizing the gap between well-intentioned plans and ground-level complexities in challenges like AMR.
