Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
6. Analyse the implications of high rates of unemployment on the Economy. Suggest measures to create long-term and sustainable employment amidst global volatility. (250 words)
Difficulty level: Tough
Reference: Economic Times
Why the question:
Former Reserve Bank of India Governor Raghuram Rajan has said that if unemployment rates in India remain high, it may lead to ‘entrepreneurial’ politicians who cater to religious divisions, rather than focusing on actually enhancing jobs.
Key Demand of the question:
To write about the implications of employment and ways to tackle it.
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 citing a statistic to show the extent of unemployment in India.
Body:
First, mention the factors that have contributed to unemployment in India and its impact – reduced demand, consumption, and buying power, which in turn causes lower profits for businesses and leads to budget cuts and workforce reductions.
Next, write about the measures that are needed to create jobs.
Conclusion:
Conclude by writing a way forward.
