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What do you understand by a Platform Economy? Examine the potential of  it to transform the current economic structure in the country.

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

6. What do you understand by a Platform Economy? Examine the potential of  it to transform the current economic structure in the country. (250 words)

Reference:  orfonline.org

Why the question:

The impact of platforms and platform economy in restructuring jobs and socio-economic spheres has been witnessed in recent times, especially during the pandemic.

Key Demand of the question:

Discuss the concept of Platform Economy. Examine the potential of it to transform the current economic structure in the country.

Directive:

Examine – When asked to ‘Examine’, we must 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.

Structure of the answer:

Introduction:

Start with what a platform economy is.

Body:

Platform and Platform Economy: Platforms are algorithm-enabled “cyberplaces” where elements like people or machinery can act or transact. Platform economy is the use of online platforms, which decreases the transaction costs of labour outsourcing and temporary access to goods and services.

Then explain how Platform business model is different from the traditional business model.

Discuss the factors that have led to the rise of Platform Economy.

Conclusion:

Conclude with the opportunity of transformation that Platform economy offers.