Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
5. The constraints of GDP hinder its ability to gauge the economic well-being experienced by individuals. What are the substitutes for GDP to address the current restrictions it poses? (250 words)
Difficulty level: Moderate
Reference: Insights on India
Why the question:
The question is part of the static syllabus of General studies paper – 3 and mentioned as part of Mission-2024 Secure timetable.
Key Demand of the question:
To write about the limitations to GDP and alternatives to it.
Structure of the answer:
Introduction:
Begin by defining GDP
Body:
First, write about the limitations of GDP as macroeconomic indicator – doesn’t capture: welfare, Environmental Abuses, Increases in Product Quality, Non-Market Production and Underground Economy.
Next, write about the alternatives to GDP to overcome the above limitations – Gross National Income (GNI), Green Gross Domestic Product (GGDP) etc.
Conclusion:
Conclude by summarising.
