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4) Both investment and its productivity should pick up, in order to boost India’s economic growth. Critically analyze. (250 words) 

Topic –   Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

4) Both investment and its productivity should pick up, in order to boost India’s economic growth. Critically analyze. (250 words) 

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Why this question

Economic growth is one of the most essential determinants of socio-economic development. It is important to know how to boost it and discuss it in the context of present situation. Here you can show your economic SKILLS to get extra marks.

Key demand of the question.

The question wants us to discuss why investments and their productivity should increase in order to boost India’s economic growth. We have to examine why one or both of them has decreased and also express our opinion on how should we proceed further.

Directive word

Critically analyze- Here we have to dig deep into the issue and identify and discuss about all the related and important aspects and correlate them to satisfy the key demand of the question. We have to form an opinion based on our analysis and discussion.

Structure of the answer

Introduction– Write a few lines about India’s present investment scenario- e.g India’s gross domestic product (GDP), which is also called the investment rate, averaged 31% in fiscals 2015-2018, compared with 33.6% in fiscals 2010-2014.

Body

  • Discuss why the investments have been low- e.g decreased capacity utilization; Focus on capital restructuring by private entities; GST implementation; demonetization shock; Upcoming elections etc.
  • Discuss ICOR and then how investments and their productivity can be increased. E.g bring out the importance of public investment here.

Conclusion– Based on your discussion form a fair and a balanced conclusion on the issue.