Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
5. Reducing cost of doing business is one of the most important aspects of ease of doing business. Discuss. (250 words)
Difficulty level: Moderate
Reference: The Hindu
Why the question:
One of the key objectives of reforms has been to reduce the distortions generated by the earlier excessive micromanagement of the economy. With internal economic liberalisation, openness to international trade and investment, an open free market economy has emerged. Improving the ease of doing business continues to be a major priority.
Key Demand of the question:
To write about the importance of reducing the cost of doing business.
Directive word:
Discuss – This is an all-encompassing directive – you must debate on paper by going through the details of the issues concerned by examining each one of them. You must give reasons for both for and against arguments.
Structure of the answer:
Introduction:
Begin by explaining cost of doing business.
Body:
First, write about the various different aspects of cost of doing business. Substantiate with statistics and bring about the impact of high cost of doing business on various macroeconomic parameters.
Next, write about the steps that are needed to be taken in order to reduce the cost of doing business.
Conclusion:
Conclude by writing a way forward.
