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6) Fundamental weaknesses in the structure of the economy need to be removed to sustain high growth along with countercyclical policies to boost demand. Explain the role of government in this case.(250 words)

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

6) Fundamental weaknesses in the structure of the economy need to be removed to sustain high growth along with countercyclical policies to boost demand. Explain the role of government in this case.(250 words)

Indianexpress

Why this question:

The article states that despite the recessionary conditions in the industrialised countries, it may still be possible to pitch for a higher growth in exports. The recent announcements on boosting exports is a recognition of this

Key demand of the question:

Explain in what way fundamental weaknesses in the structure of the economy need to be removed to sustain high growth along with countercyclical policies to boost demand.

Directive:

Explain – Clarify the topic by giving a detailed account as to how and why it occurred, or what is the particular context. You must be defining key terms where ever appropriate, and substantiate with relevant associated facts.

Structure of the answer:

Introduction: 

In brief discuss the current economy of the country.

Body:

First using statistics explain the issues marring the economy of the country.

Explain – Several sectors such as automobiles and housing are facing a sharp weakening of demand. And there has been a significant fall in the savings and investment rate. Within household savings, the proportion of savings in financial assets has sharply declined.

Discuss what measures need to be taken to overcome this challenge.

Conclusion:

Conclude with way forward.