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What is V-Shaped Recovery? Do the good tidings in Gross Domestic Product (GDP) data forecast a V-shaped recovery for the Indian economy? Critically examine.

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

5. What is V-Shaped Recovery? Do the good tidings in Gross Domestic Product (GDP) data forecast a V-shaped recovery for the Indian economy? Critically examine. (250 words)

Difficulty level: Tough

Reference: The HinduIndian Express

Why the question:

Gross Value Added (GVA) in the economy during the April to June period rose 18.8%, as per the National Statistical Office (NSO), from a 22.2% dip in the first quarter of 2020-21.

Key Demand of the question:

To explain Social Stock Exchange, its working and factors that will make it a success in India.

Directive word: 

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:

Introduction: 

Begin by defining V-Shaped Recovery post covid-19 economic slowdown. Use graph and cite examples.

Body:

Write about the India’s Gross Domestic Product (GDP) growth by 20.1% in first quarter and its various interpretation.

Next, write if the NSO numbers ‘reaffirm’ governments prediction of an ‘imminent V-shaped recovery’ made this time last year, and said the 20.1% rise in GDP ‘despite the intense second wave in the months of April-May.

Next, write difference between an economy benefiting from a “low base effect” and one registering a V-shaped recovery.

Conclusion:

Conclude by suggesting steps for quick recovery of economy from a policy perspective.