Topic – Indian Economy – issues
7) India is faced with a deluge of macroeconomic threats. Examine why and give suggestions to improve it?(250 words)
Why this question
The article talks about the several macroeconomic challenges that India is faced with , which is necessary to understand from mains perspective.
Key demand of the question
The question expects us to bring out the macroeconomic challenges facing India, reasons behind the same and policy steps needed to address such challenges.
Examine – When you are asked to examine, you have to probe deeper into the topic, get into details, and find out the causes or implications if any .
Structure of the answer
Introduction – Explain that India was passing through the Goldilocks zone, a situation in sharp contrast from now.
Body – Mention the macroeconomic challenges such as high CAD, lower inflation, high oil prices etc. Mention other problems like private investment not picking up etc. Explain the broad reasons for these issues and discuss the impact on growth of Indian economy going forward. Suggest steps through which the situation can be improved ( take ideas from the article and also elsewhere).
Conclusion – Emphasize on the need to tackle this to ensure stability of Indian economy.