Topic– Indian economy – issues
5) Comment on the major issues confronting Indian macro economy today and discuss how we should deal with these challenges?(250 words)
Why this question
Off late, there have several challenges confronting Indian economy. The article discusses these challenges, analyzes the steps taken. Understanding the main challenges confronting Indian macro economy today, when there are conflicting views on performance of India’s macro economy is thus important.
Key demand of the question
The question expects us to explain the major challenges to India’s macro-economy, in your opinion. Discuss what steps are being taken and what should be the way forward.
Comment – When you are asked to comment, you have to pick main points and give your ‘opinion’ on them based on evidences or arguments stemming from your wide reading.
Structure of the answer
Introduction – Discuss the status of India’s macro-economy. give facts and figures on India’s GDP, growth rate, inflation etc
Body – Discuss the main challenges to India’s macro-economy in your opinion. You can either discuss the challenges mentioned in the article such as NPA, rupee depreciation etc. Also discuss the positives. You can also discuss other issues plaguing India’s macro-economy and give justification as to why those issues are critical. Next we need to highlight the steps government has been taking and the way forward. For instance, in case of NPA, mention that government has been taking a string of measures like S4A, asset recapitalisation etc but without much of a dent. Discuss the way forward in brief for each of these challenge.
Conclusion – comment on the robustness of India’s macro-economy.