Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
4. What is Gross Domestic Product (GDP)? Examine the limitations pertaining to GDP as an economic performance measurement framework of the country. (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 GDP, its limitations in highlighting the nature of India’s 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:
Begin by defining GDP.
Body:
First, write about various parameters that can be assessed by measuring GDP.
Next, write about limitations of GDP – leaves out some production in an economy. Even though GDP is frequently used to capture the wellbeing of a society, it was never intended to do that, and as a result, it leaves out important aspects of well-being like pollution or even happiness.
Next. Mention the new measurements which are needed for economic performance measurement and framework.
Conclusion:
Conclude by writing a way forward.
