Chapter 25 · Topic 25.3 · Prelims + Mains3 of 3

Governance: Pressure groups

Key points

  • Pressure groups influence policy without contesting elections: lobbying, petitions, litigation, media, protests.
  • Informal groups (2017): farmers' protests 2020–21 led to repeal of three farm laws in November 2021.
  • FCRA: 1976 Act replaced by FCRA, 2010; 2020 amendment bans passing funds on and caps admin spending at 20%.
  • SHGs: NABARD Bank Linkage 1992; DAY-NRLM 2011; Kudumbashree 1998.

Prelims box: facts and traps

  • Examples: FICCI, CII, ASSOCHAM; AITUC, INTUC, BMS; IMA, Bar Councils.

Pressure groups

Quick answerPressure groups are organised groups that try to influence government policy without contesting elections. Business bodies, unions, farmers and professionals all lobby for their interests. UPSC asks how they work and whether they strengthen or weaken democracy.

Like students’ representatives who meet the principal: they don’t run the school, but they push for changes.

TypeExamples
BusinessFICCI, CII, ASSOCHAM
Trade unionsAITUC, INTUC, BMS
FarmersBharatiya Kisan Union, regional farmers’ bodies
ProfessionalIndian Medical Association, Bar Councils
Issue-based and informalEnvironmental movements, online campaigns, caste and community bodies

Mains 2017 asked how pressure groups influence the Indian political process, and whether informal groups are now more powerful than formal ones.

  • Methods: lobbying (directly persuading) ministers and committees, petitions and litigation, media campaigns and protests.
  • Informal networks matter more now: the farmers’ protests of 2020–21 led to the repeal of the three farm laws in November 2021.

Mains 2026 asked whether pressure groups, social movements and corporate lobbies deepen pluralistic democracy (where many groups compete to be heard), or whether the convergence of corporate wealth and political power threatens institutions.

Asked by UPSCUPSC Mains 2017 · GS Paper II · Q4 · 10 marks

How do pressure groups influence Indian political process? Do you agree with this view that informal pressure groups have emerged as more powerful than formal pressure groups in recent years?

Asked by UPSCUPSC Mains 2026 · GS Paper II · Q15 · 15 marks

To 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 wealth and political power poses a threat to the autonomy of formal democratic institutions.

What UPSC asks: Prelims: types and examples. Mains: influence of pressure groups (2017, 2026). Next likely angle: lobbying and money in politics.

NGOs and self-help groups

Mains 2021 asked whether civil society and NGOs (non-governmental organisations) can offer an alternative model of public service delivery.

  • Strengths: they reach where the State does not (Pratham in learning surveys, SEWA for informal workers).
  • Limits: funding gaps, uneven accountability and scale limits.

Foreign funding is controlled by the Foreign Contribution (Regulation) Act (FCRA). Mains 2015 asked about the changes:

  • The 1976 Act was replaced by the FCRA, 2010.
  • In 2015 the government cancelled registrations of thousands of NGOs for not filing returns.
  • The 2020 amendment banned passing funds on to other NGOs and capped administrative spending at 20%.
Asked by UPSCUPSC Mains 2021 · GS Paper II · Q18 · 15 marks

Can Civil Society and Non-Governmental Organizations present an alternative model of public service delivery to benefit the common citizen? Discuss the challenges of this alternative model.

Asked by UPSCUPSC Mains 2015 · GS Paper II · Q8 · 12.5 marks

Examine critically the recent changes in the rules governing foreign funding of NGOs under the Foreign Contribution (Regulation) Act (FCRA), 1976.

NGOs and self-help groups compared
NGOs and self-help groups compared.

Self-help groups (SHGs) are small groups, usually of 10 to 20 women, who save together and borrow from banks.

  • NABARD’s SHG–Bank Linkage Programme began in 1992.
  • DAY-NRLM (2011) organises SHGs across rural India.
  • Kerala’s Kudumbashree (1998) links them with panchayats.

Mains 2020 quoted “Micro-Finance as an anti-poverty vaccine”. Mains 2017 asked whether the rise of SHGs shows the State withdrawing from development. In fact the State funds and promotes them, though critics say it shifts risk onto poor women.

What UPSC asks: Prelims: FCRA; SHG–Bank Linkage. Mains: NGOs (2021); FCRA (2015); SHGs (2017, 2020). Next likely angle: Lakhpati Didi and SHG credit.

Mains box: analysis and answer points

  • 2026: pluralism vs corporate–political convergence. 2021: NGOs as alternative delivery. 2017/2020: SHGs and micro-finance.

Practice

Prelims PYQs on this topic (4)

UPSC Prelims 2026 · GS Paper I

Which of the following statements with respect to the Revamped Rashtriya Gram Swaraj Abhiyan (RGSA) is/are correct ?

  • 1. The period of its implementation is 1st April, 2021 to 31st March, 2026.
  • 2. The key objective of the Revamped RGSA is to develop the governance capabilities of the Panchayati Raj Institutions to deliver on the Sustainable Development Goals.
  • 3. The share of the Central funding for the Revamped RGSA is 100% for all States and Union Territories.

Select the answer using the code given below :

Answer (b) & explanation

Only statement 2 is correct (b). Statement 2 is right: the Revamped RGSA aims to build the governance capacity of Panchayati Raj Institutions to deliver on the SDGs. Statement 1 is wrong: it was approved in 2022 to run from 2022-23 to 2025-26, not from April 2021. Statement 3 is wrong: funding is shared 60:40 with States (90:10 for north-eastern and hill States); only Union Territories get 100%. So options (a), (c) and (d) fail.

Notice the link: the RGSA uses the Localisation of SDGs approach through nine themes, such as poverty-free and healthy villages. The 73rd Amendment (1992) gave Panchayats constitutional status. 24 April is National Panchayati Raj Day.

Trap

"100% for all" is the giveaway. Centrally sponsored schemes almost always share costs with States.

Answer as per the official UPSC answer key.

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UPSC Prelims 2013 · GS Paper I

The Government enacted the Panchayat Extension to Scheduled Areas (PESA) Act in 1996. Which one of the following is *not* identified as its objective?

Answer (c) & explanation

Creating autonomous regions is not a PESA objective (c). PESA (1996) extends Part IX on panchayats to Fifth Schedule areas, with changes that give tribal communities self-governance through the Gram Sabha (a), respect their customary and traditional rights over resources (b), and protect them from exploitation such as land alienation and money-lending (d). Option (c) is wrong: autonomous district councils belong to the Sixth Schedule areas of Assam, Meghalaya, Tripura and Mizoram, not PESA.

Notice the coverage: PESA applies to Fifth Schedule areas in ten states, including Jharkhand, Chhattisgarh and Odisha; Jharkhand notified its PESA rules only in January 2026. The Bhuria Committee (1995) recommended the law. Trap: Fifth and Sixth Schedules are easily mixed up.

Answer as per the official UPSC answer key.

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UPSC Prelims 2013 · GS Paper I

According to the Constitution of India, which of the following are fundamental for the governance of the country?

Answer (c) & explanation

Directive Principles of State Policy is correct (c). Article 37 says the Directive Principles are not enforceable by any court, but they are 'nevertheless fundamental in the governance of the country', and the State must apply them in making laws. (a) is wrong: Fundamental Rights are enforceable but are not described in these words. (b) and (d) are wrong: Fundamental Duties (Article 51A) apply to citizens and are not called fundamental for governance.

Notice the balance: in Minerva Mills (1980), the Supreme Court held that harmony between Fundamental Rights and DPSPs is part of the basic structure. DPSPs were borrowed from the Irish Constitution, and B.R. Ambedkar called them 'novel features'. Trap: the word 'fundamental' appears in all options, but the phrase belongs to Article 37.

Answer as per the official UPSC answer key.

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UPSC Prelims 2012 · GS Paper I

Which of the following can be said to be essentially the parts of ‘Inclusive Governance’?

  • 1. Permitting the Non-Banking Financial Companies to do banking
  • 2. Establishing effective District Planning Committees in all the districts
  • 3. Increasing the government spending on public health
  • 4. Strengthening the Mid-day Meal Scheme

Select the correct answer using the codes given below :

Answer (c) & explanation

Statements 2, 3 and 4 are correct (c). Inclusive governance means planning and services reach everyone, especially the poor. Effective District Planning Committees bring local participation into planning (2). More public health spending widens access to care (3). A stronger Mid-day Meal Scheme improves nutrition and school attendance (4). Statement 1 is wrong: letting NBFCs do banking is a financial-sector reform, not essentially an inclusion measure. So (a), (b) and (d) fail.

Notice the current versions: Mid-day Meal is now PM POSHAN (2021), and the National Health Policy 2017 targets public health spending of 2.5% of GDP. Small Finance Banks and Payments Banks (2015) are the inclusion-focused route for non-bank players. Trap: 'banking' sounds inclusive but the measure as stated is not.

Answer as per the official UPSC answer key.

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Mains PYQs on this topic (6)

Write an answer

In 150 words, explain the significance of Governance with one recent example.

Flashcards (5)

Name two business pressure groups.

FICCI and CII.

Which law controls foreign funding of NGOs

now? The FCRA, 2010.

Cap on administrative expenses under the

2020 FCRA amendment? 20%.

When did the SHG–Bank Linkage

Programme start? 1992 (NABARD).

Which Kerala programme links SHGs with

panchayats? Kudumbashree (1998).

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