2) The automobile sector of the country is in the news as it is experiencing prolonged negative growth. What are the reasons? Why are jobs being lost? And how can the government help? Discuss. (250 words)

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Topic: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.

2) The automobile sector of the country is in the news as it is experiencing prolonged negative growth. What are the reasons? Why are jobs being lost? And how can the government help? Discuss. (250 words)

The hindu

Why this question:

The article captures the sudden slump being witnessed in the automobile industry in the country.

Key demand of the question:

Explain the causes for the slump in the automobile sector, the loss of jobs that is being witnessed and what the government needs to do to overcome the challenges and the concerns.

Directive:

DiscussThis 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:

Introduction: 

Discuss the current situation of automobile industry in the country.

Body:

Quote data from the article indicating the slowdown in the markets, explain the causative factors – global and domestic economic slowdown, lack of will in people to buy owing to policy changes in the tax regime, electric vehicles, BS VI reforms etc.

Explain what needs to be done by the government like – 

A reduction in GST to 18% from the current rate of 28% will help in an immediate price reduction.

Measures to handle the NBFC crisis will help infuse the much-needed liquidity into the system ahead of the coming festive season.

Clarity on policy for electric vehicles and introduction of vehicle scrappage policy will also boost demand for new vehicles.

Conclusion:

Conclude with way ahead.