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A sound vehicle scrapping policy can certainly shore up demand across sectors in the country. Elucidate

Topic: GS-2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

 GS-3: Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

5. A sound vehicle scrapping policy can certainly shore up demand across sectors in the country. Elucidate (250 words)

Reference:  Economic Times

Why the question:

The question is amidst recent move of scrapping policy brought out by the government in the country.  

Key Demand of the question:

Discuss the merits of such a policy and explain in what way it can shore up demand across sectors in the country.

Directive:

Elucidate – Give a detailed account as to how and why it occurred, or what is the particular context. You must be defining key terms where ever appropriate, and substantiate with relevant associated facts.

Structure of the answer:

Introduction:

Start with the details of the policy.

Body:

Explain that vehicle scrappage policy intention previewed in the Union budget speech is sensible. It can well boost fuel efficiency, reduce the oil import bill and stem environmental pollution too. But, in tandem, we do need to put in place proactive policy for organized scrapping of steel, and incentivize regular vehicular maintenance to enforce pollution norms rather than go by vehicular age stipulation to have them off the roads.

Present merits and demerits.

Conclusion:

Conclude that a sound vehicle scrapping policy can certainly shore up demand across sectors, gainfully rev up fuel efficiency, plus have fiscal benefits in the form of reduced oil imports, and also purposefully tackle environmental externalities going forward.