Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
5) Discuss in what way the Automobile Industry slump has coincided with an overall slowdown of the Industries that has affected almost all segments of the society. (250 words)
Why this question:
The state of the Indian economy is at a worrying situation at present. The GDP growth rate has slipped to 5 per cent in the first quarter of Financial Year 2020, the lowest in over six years.
The recent collapse of the automobile sector, the rising Non-Performing Assets, the falling demands of the consumers proves the slowing down of the Indian Economy.
Key demand of the question:
Explain in what way the slowdown in the automobile sector has a multiplier effect on the entire economy.
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
Comment on the fact that over the past few months, the Automobile Industry is facing a slowdown.
Explain first the reasons for the slowdown of the overall economy.
Why is there a slowdown in automobile industry? How is it related to Industries and back to all the sectors of the society?
Explain the overall impact on the Industrial Sector due to Slowdown in the Automobile Sector.
Conclude with suggestions to contain the slowdown and what needs to be done.