Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
5. Discuss the trends of recession faced by India in the past and explain how the upcoming recession is different from the past downturns? (250 words)
Reference: Business Today
Why the question:
The article brings to us a detailed view of Recessions faced by India in the past and the one possibly that India would face owing to multiple factors.
Key Demand of the question:
Student must explain the trends of recession faced by India in the past and explain how the upcoming recession is different from the past downturns.
Discuss – This 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:
Start by explaining what you understand by Recession. Define and clarify upon the concept of Recession in the introduction. Recession is generally defined as a fall in the overall economic activity for two consecutive quarters (six months) accompanied by a decline in income, sales and employment.
Start by explaining the trends – Since independence, India has witnessed four recessions. As per Reserve Bank of India (RBI), the recessions occurred in 1958, 1966, 1973 and 1980. Throw light on India’s past recessions; discuss the causes that led to such situations, explain how India handled them and recovered out of it. Take hints from the article and draw upon the trends of the past, explain the upcoming recession too. The current recession staring at India brings a new set of challenges. The crisis has emerged out of the blue as the country is in a lockdown, severely hampering economic activity. For India this is estimated to be the worst ever contraction of GDP growth.
Conclude with way forward.