Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
5. There is a need for vigilant monitoring of the country’s inflation situation and its impact. Policymakers should be well-prepared to address the challenges posed by a potential surge in inflation. Analyse. (250 words)
Difficulty level: Moderate
Reference: The Hindu , Insights on India
Why the question:
The article discusses the anticipation of a surge in inflation based on recent inflation data. It emphasizes that there were indications pointing towards this inflationary trend.
Key Demand of the question:
To write about inflation, its impact and measures needed to keep it under control.
Structure of the answer:
Introduction:
Begin by defining inflation.
Body:
First, write about the impact of inflation on various macroeconomic parameters – purchasing power, growth, cost of living, availability of credit and exchange rates etc.
Next, write about the measures that are taken to keep inflation under tolerable limits – the monetary policy measures, fiscal policy measures and price control measures.
Conclusion:
Conclude by writing a way forward.
