Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
1. Critically examine the double trouble Indian economy is facing – the problem of decreasing economic growth rate and increasing. (250 words)
Why this question:
The article brings out a detailed discussion of the double whammy Indian economy is facing.
Key demand of the question:
Discuss in detail the double trouble Indian economy is facing – the problem of decreasing economic growth rate and increasing
Critically examine – When asked to ‘Examine’, we have to look into the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a fair judgment.
Structure of the answer:
Define inflation and the trends of growth witnessing the Indian economy.
Uneven inflation and sluggish growth present serious dilemmas for policymakers in the country as prices in the economy continue to rise even as economic growth has plummeted to well under 5%. Food inflation, now in double-digits, has caused significant pain. The International Monetary Fund on December 23 called for “urgent” policy measures to reverse the current slowdown that has weighed down global economic growth.
Discuss the causative factors in detail.
Explain what needs to be done to overcome the issue.
Conclude by suggesting solutions to the problem.