5) Why India’s banking sector is among the most vulnerable in G-20 economies today? Analyse.
- March 7, 2018
- Posted by: INSIGHTS
- Category: INSIGHTS
Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment..
5) Why India’s banking sector is among the most vulnerable in G-20 economies today? Analyse. (250 Words)
Why this question?
This issue is in news and will be in news. Important for Mains (there will be one question on Banking sector)
Key demand of the question:
It’s a direct question – Analyse why India’s banking system is most vulnerable in G-20. Major focus should be on analysing problems in India’s banking system. Don’t compare with G-20 countries’ banking crisis.
Analyse: In different parts(categories), examine causes.
Structure of Answer:
In the introduction write about larger impact of banking sector on India’s economy and how it’s a crisis born out of certain policies.
In the body, within 5-6 different categories, analyse reasons for the crisis (NA, CAR, Salaries of staff/managers, Incentives, Risk management, corruption etc)
In the conclusion, write about the need for structural reforms in banking sector. Link with Nirav Modi like current affair and give a warning message.
Tip: Don’t lose sight of current affairs while answering.
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