Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
5. What is trade deficit? Examine its implications on the Indian economy and measures needed to keep deficit within acceptable limits. 250 words)
Difficulty level: Moderate
Reference: Indian Express
Why the question:
Driven by a rise in global demand for engineering and electronic products, India’s goods exports in December rose 1 per cent while the trade deficit narrowed to a three-month low.
Key Demand of the question:
To write about the trade deficit and its impact on the Indian economy.
Directive word:
Examine – When asked to ‘Examine’, we must investigate the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications.
Structure of the answer:
Introduction:
Start by defining current trade deficit.
Body:
Frist, write about the impact of trade deficit will have on the Indian economy. Substantiate with facts and examples.
Next, write about the measures that are needed to keep the trade deficit in acceptable limits.
Conclusion:
Conclude by writing a way forward.
