2021 · GS Paper 2 · Q5 · 10 marks
Pressure groups play a vital role in influencing public policy making in India. Explain how the business associations contribute to public policies.
In short
Business associations such as FICCI, CII, ASSOCHAM and NASSCOM shape public policy through pre-budget memoranda, legislative inputs, trade consultations and implementation partnerships. Their long-standing demands fed into the 2019 cut in the base corporate tax rate from 30% to 22%.
Model answer
Ghissu Editorial · Verified 4 Oct 2026 · 269 words
Pre-budget consultations
The Finance Ministry meets FICCI, CII and ASSOCHAM before every Union Budget, weighing their memoranda on taxes and duties.
Legislative inputs
Associations depose before Parliamentary Standing Committees, as NASSCOM's Data Security Council of India did on the Digital Personal Data Protection Act 2023.
Opaque lobbying
India has no lobbying disclosure law, and the Niira Radia tapes of 2010 showed how access can slide into capture.
Tax reform
Long-standing industry demands fed into the 2019 cut in the base corporate tax rate from 30% to 22%, with 15% for new manufacturing firms.
Trade policy
Dairy, steel and textile bodies warned against cheap imports, shaping India's exit from RCEP in 2019.
Digital economy
NASSCOM's advocacy helped relax the Other Service Provider guidelines in 2020, which let IT firms work from home at scale.
Implementation partners
Industry-led Sector Skill Councils under the National Skill Development Corporation design job roles and certification, such as the IT-ITeS council promoted by NASSCOM.
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This chapter in the exam
Pressure Groups & Formal/Informal Associations and Their Role in the Polity8 questions
Asked in 7 of 14 sittings since 2013
- 2026To what extent do pressure groups, social movements and corporate lobbies deepen pluralistic democracy in India by representing excluded interests ? Analyse whether the growing convergence of corporate and political power poses a threat to the autonomy of formal democratic institutions.
- 2025Civil Society Organizations are often perceived as being anti-State actors than non-State actors. Do you agree? Justify.
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Question from the official UPSC Civil Services (Main) Examination 2021 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.