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APSC Answer Writing (Daily) based on Assam Tribune – 28/03/2026

For APSC CCE and other Assam Competitive examinations aspirants, practicing Daily Answer Writing is vital. This blog covers the most important Main question and its model Answer from the Assam Tribune today (28-03-2026).

📝 GS Mains Model Question

Q. “India’s response to rising global crude oil prices reflects a complex trade-off between fiscal prudence and economic stability.”
Discuss in the context of recent policy measures and energy security challenges. (250 words)

✍️ Model Answer

🔹 Introduction

The recent surge in global crude oil prices due to the West Asia crisis has posed significant challenges for India, which is heavily dependent on imports. The government’s decision to cut excise duty on fuel while keeping retail prices stable reflects a balancing act between controlling inflation and maintaining fiscal discipline.

🔹 Fiscal vs Economic Trade-off

1. Inflation Control

Fuel prices directly impact:
- Transport costs
- Food inflation
Govt avoided price hike → protected consumers

2. Fiscal Pressure

Excise duty cut → loss of revenue
Increased fiscal deficit risk

3. OMC Burden

Oil Marketing Companies absorb losses
Affects financial sustainability

🔹 Energy Security Dimension

1. High Import Dependence

~80–88% crude imported

2. Geopolitical Risks

West Asia instability
Threat to supply routes (Hormuz)

3. Price Volatility

Global shocks affect domestic economy

🔹 Government Measures

₹10 excise duty cut
Export duty on petroleum products
Strategic reserves utilisation
Centre–State coordination (Team India approach)

🔹 Challenges

Long-term fiscal sustainability
Continued dependence on imports
Balancing consumer welfare and economic efficiency
Need for diversification

🔹 Way Forward

1. Diversify Energy Sources

Reduce reliance on West Asia

2. Promote Renewable Energy

Solar, wind, green hydrogen

3. Rational Pricing Mechanism

Gradual alignment with global prices

4. Strengthen Fiscal Framework

Enhance non-tax revenue

5. Expand Strategic Reserves

Buffer against shocks

🔹 Conclusion

India’s response highlights the need for a balanced approach that safeguards economic stability without compromising fiscal health. Long-term solutions lie in energy diversification, structural reforms, and strategic resilience.

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