Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
4. “The coronavirus is driving the world into a recession, and India cannot be insusceptible to it”, do you agree with the statement? Critically analyse. (250 words)
Reference: The Hindu
Why this question:
The article presents a detailed discussion on the global spread of the coronavirus and the economic impact.
Key demand of the question:
The answer must discuss the impact of the Corona virus on the economy of the world in general and in what way India is no exception to it.
Directive:
Critically 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. 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:
Introduction:
Briefly explain the spread and coming of the corona virus outbreak.
Body:
- Discuss the global impact – The virus has crippled global supply chains, hit air travel and affected markets.
- The Chinese economy is in deep trouble due to the impact of the virus and the virus appears all set to adversely impact the U.S. economy, the global economic engine.
- S. companies ranging from Apple and Nvidia to Procter & Gamble and Adidas are facing troubles because of their large exposures to the Chinese market or their reliance on suppliers from China.
- A slowdown or worse, recession, in the two global economic engines may push the entire world economy into recession.
- Markets reflected these concerns as important indices plunged and investors pulled out money.
- Unlike a financial crisis which can be sorted out with measures such as rate cuts and bail-outs, the present crisis is immune to financial solutions.
Then discuss specifically the impact on Indian economy.
Conclusion:
Conclude with what needs to be done to overcome the ill-effects of such a global epidemic.
