← All questionsGS3 · 2019 · Economy & Infrastructure ·Growth, Low Inflation and Economic Health
QUESTION 2
GS3
10 marks

Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments.

WRITE IN
7 min
150 words

What the examiner wants

Take a stand on whether steady growth and low inflation mean the Indian economy was in good shape.

Do you agree? Give reasonsAnswer exactly what the question asks.

Demand-wise check

  1. 1Supporting: macro stability, inflation targeting success, fiscal consolidation, forex reserves≈30 words
  2. 2Against (2019 context): slowdown to about 5%, low consumption, NBFC crisis (IL&FS), unemployment at 6.1% (PLFS 2017–18), weak private investment, rural distress, twin balance sheet≈30 words
  3. 3Stand: stable but not healthy≈30 words
  4. 4Measures≈30 words

Open in about 20 words and close in about 20.

Answer plan

StandArguments forArguments againstMeasuresConclusion

Where marks usually go

  • No stand such as 'stable on paper, weak in demand and jobs'
  • No 2019 data, e.g. GDP growth near 5%, PLFS unemployment 6.1%

Draw this

  • Dashboard of indicators: green vs red

Value addition

  • DataPLFS 2017–18 put unemployment at 6.1%, a 45-year high.PLFS 2017–18
  • PolicyFlexible inflation targeting (4% ± 2%) under the RBI Act amendment, 2016.RBI Act, Section 45ZA

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