Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
4) The current conditions of Indian Economy requires to strengthen domestic growth impulses by spurring private investment, that have remained inactive. Comment. (250 words)
Why this question:
The article is in the backdrop of RBI’s recent second successive repo rate cut, and retainment of neutral policy stance along with lowers projections for both GDP growth and inflation.
Key demand of the question:
In such a context it is necessary for us to evaluate steps required to strengthen the domestic growth and in this question special emphasis needs to be given to discuss role of private investment.
Comment– here we have to express our knowledge and understanding of the issue and form an overall opinion thereupon.
Structure of the answer:
Begin with brief introduction of recent measures taken by RBI to boost growth .
Discussion should have the following dimensions :
- The highlights of the RBI policies recently taken.
- Importance private investment in boosting Indian economy – In the conditions of RBI looking to use monetary tools to stimulate economic growth wherein a benign inflationary environment has helped the central bank edge into an expansionary monetary space it is essential and crucial for private investors to aid the growth.
- Discuss in detail role of private investment , provide for a comparison with that of public investment.
- What are the challenges faced by the private investors ?
- What needs to be done to stimulate them.
Conclude with significance of such steps.