Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
5. As the economy recovers from the impact of the pandemic, a coordinated policy response – fiscal, monetary, trade and industry – will be required for balancing the multiple macroeconomic policy objectives and achieve even growth. Analyse. (250 words)
Difficulty level: Moderate
Reference: Indian Express
Why the question:
At 8.7 per cent, the National Statistical Office’s latest estimate for GDP growth in 2021-22, while marginally lower than the 8.95 per cent projected in late February, is quite good given the headwinds the economy faced.
Key Demand of the question:
To write about the policy response to ensure even growth in all sectors in post pandemic recovery.
Directive word:
Analyse – When asked to analyse, you must examine methodically the structure or nature of the topic by separating it into component parts and present them in a summary.
Structure of the answer:
Introduction:
Begin by giving context and cite statistic to substantiate the same.
Body:
First, write in detail about the various issues that led to uneven growth in the post pandemic recovery– inflation, uneven focus, lack of coordination, disproportionate impact of pandemic on various sectors etc.
Next, write about the coordinated policy response that is needed in order to overcome the same. Mention the various components of fiscal, monetary, trade and industry which should be part of the response.
Conclusion:
Conclude with a way forward.
