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1) What do you understand by impact investing? Comment on how technology is playing a key role in bringing a measurable social change? Discuss the lessons that India should learn from its experience of impact investing so far?(250 words)

Topic – poverty and developmental issues, Effects of globalization on Indian society.

1) What do you understand by impact investing? Comment on how technology is playing a key role in bringing a measurable social change? Discuss the lessons that India should learn from its experience of impact investing so far?(250 words)

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Why this question

The article discusses the positive social change brought about by impact investing, and the lessons that can be learnt from India’s experience in impact investing. Such entrepreneurial spirit had developed in the society which is bringing about a positive change and needs to be prepared for sociology section of paper 1.

Key demand  of the question

The question expects us to explain what impact investing is, examine the role of technology in ensuring that the impact of such changes are far and wide and finally, discuss lessons that can be learnt from India’s experience with the same.

Directive word

Comment – When you are asked to comment, you have to pick main points and give your ‘opinion’ on them based on evidences or arguments stemming from your wide reading. Your opinion may be for or against, but you must back your argument with evidences.

Discuss – here your discussion should bring out the various lessons that India should learn from the experience of impact investors so far.

Structure of the answer

Introduction – Explain what impact investing is – Impact investing refers to investments “made into companies, organizations, and funds with the intention to generate a measurable, beneficial social or environmental impact alongside a financial return

Body

  • Explain the role of technology such as mobile phones, internet etc in facilitating impact investing. mobile phone is one of the biggest drivers of social impact in India. As smartphones become ubiquitous and data costs decline, both businesses and governments can easily reach populations that they could not before. Many of these people have previously been excluded or underserved.
  • Discuss the lessons that India must learn from the experience of impact investors
    • Failure rates in early stage investments will inevitably be high. Investments can be written off due to a variety of reasons and several investments will not have the intended social impact. it is important to ensure that failures don’t inhibit us from making the bold bets that are needed to drive disruptive and positive social impact.
    • funding quality research can inspire change in many ways. It can sensitize entrepreneurs to new opportunities. Research can also bring valuable data and insights to inform policy decisions and debates. Etc

Conclusion – Give your view on the importance of impact investing for bringing about change and discuss way forward.