Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
4) Discuss in detail the crisis being faced by NBFCs in India? Suggest what measures need to be taken to resolve the same? (250 words)
Why this question:
The article highlights the ripple effect of the NBFCs crisis on the Indian economy. Non-banking financial companies (NBFCs) are facing a crisis , it brings out the urgency with which RBI needs to urgently address the liquidity issues plaguing the NBFC sector.
Demand of the question:
The answer must explain what are NBFCs, their role and activities in the economy, what are the issues currently they are facing and what needs to be done to resolve it.
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
The answer to the question is direct, one must explain in detail the issues being faced by NBFCs and what measures are needed to tackle the same.
The article captures both the dimensions, the students must take hints and structure the answer in detail.
Conclude with what should be the way ahead.