Topic: Inclusive growth and issues arising from it.
4. Post COVID-19, the normalisation of the Indian economy has now been disturbed by the ongoing geopolitical uncertainties. Suggest steps India must take in order to achieve its growth objectives. (250 words)
Difficulty level: Moderate
Reference: the Hindu
Why the question: On February 28, 2022, the National Statistical Office (NSO) released India’s GDP data for Q3 of 2021-22 along with Second Advance Estimates (SAE) for 2021-22.
Key Demand of the question: To write about the impact ongoing geopolitical uncertainties on economic growth and measures need to overcome it.
Structure of the answer:
Introduction:
Start the answer by giving context regarding ongoing geopolitical uncertainties.
Body:
In the first part, present statistic how the Post COVID-19, the normalisation of the Indian economy was taking place and highlight major recovery in the sectors.
Next write about how ongoing geopolitical uncertainties will impact the economy – Crude upsurge impact, inflation effects, fiscal implications, tax buoyancy, subsidy bill, worsening of the current account balance, higher import bills, depreciating rupee, supply-side bottlenecks and cost escalation.
Next, write about the steps that are needed to overcome the above.
Conclusion:
Conclude by writing a way forward.
