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5. Imports from China have curbed capacity creation and utilization over time. Do you think India’s bane is its non-competitiveness? Analyse with relevant illustrations. (250 words)

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

5. Imports from China have curbed capacity creation and utilization over time. Do you think India’s bane is its non-competitiveness? Analyse with relevant illustrations. (250 words)

Business Line

Why this question:

The question seeks to examine the levels of competitiveness India stands at owing to competition from China.

Key demand of the question:

One must examine closely the effects of Chinese market flooding Indian markets and in what way it has curbed capacity creation and utilization over time.

Directive:

Analyze – When asked to analyse, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary.

Structure of the answer:

Introduction:

Explain the context of the question in brief.

Body:

Discuss the following aspects in the answer body:

Explain the relevance of competitiveness in general to an economy of a country.

Highlight the current trends in the world; discuss how the strategies of one country affect the other.

Discuss the case of India and China.

Take hints from the article and illustrate relevantly the context of the answer.

Conclusion:

Conclude with solutions as to what should India do to overcome these challenges.