QUESTION 1
GS3
10 marks
Among several factors for India’s potential growth, savings rate is the most effective one. Do you agree? What are the other factors available for growth potential?
WRITE IN
7 min
150 words
What the examiner wants
Judge whether savings is the strongest driver of India's potential growth and identify the other drivers.
Do you agree + WhatAnswer exactly what the question asks.
Demand-wise check
- 1Case for savings: funds investment and capital formation; Harrod–Domar (growth = savings rate / ICOR); East Asian experience≈30 words
- 2Limits: high savings without productive investment fails; capital can be imported; efficiency (ICOR) matters≈30 words
- 3Other factors: demographic dividend, human capital, total factor productivity, technology, infrastructure, institutions, ease of doing business, women's workforce participation≈30 words
- 4Stand: savings necessary but productivity decides sustained growth≈30 words
Open in about 20 words and close in about 20.
Answer plan
Theory of savings-led growthLimitsOther factorsStandConclusion
Where marks usually go
- Agreeing fully without the productivity counterpoint
- Not defining potential growth
Draw this
- Flow: savings → investment → capital stock → output, with productivity as multiplier
Value addition
- ModelHarrod–Domar model: growth rate equals savings rate divided by the incremental capital-output ratio.Harrod (1939), Domar (1946)
- DataHousehold net financial savings fell to about 5% of GDP in 2022-23, among the lowest in decades.MoSPI/RBI, 2023-24
Mapped topper copies
Reviewed public-source references related to this PYQ. Same-syllabus references are labelled separately.
- Aniket Ranjan · AIR 48 · Page 26 ↗Reviewed PYQ reference
- Mayank Purohit · AIR 33 · Page 15 ↗Reviewed PYQ reference
- Shakti Dubey · AIR 1 · Page 23 ↗Same syllabus reference
- Mayank Purohit · AIR 33 · Page 13 ↗Same syllabus reference
Links open original public sources. MainsBuddy does not host these answer sheets.
Next: plan for one minute, write it in 7 minutes, then get it checked.