QUESTION 2
GS3
10 marks
Define potential GDP and explain its determinants. What are the factors that have been inhibiting India from realizing its potential GDP?
WRITE IN
7 min
150 words
What the examiner wants
Define potential GDP, explain what determines it, and say what keeps India below it.
Define + ExplainMake clear how and why it happens: causes, process, and an example for each point.
Demand-wise check
- 1Definition: maximum sustainable output without rising inflation, using labour and capital fully≈30 words
- 2Determinants: labour force and participation, capital stock, productivity (TFP), technology, institutions≈30 words
- 3India's constraints: low female LFPR, skill gaps, infrastructure, investment slowdown, twin balance sheet problem, informality, regulatory burden≈30 words
- 4Measures≈30 words
Open in about 20 words and close in about 20.
Answer plan
DefinitionDeterminantsIndia's constraintsMeasuresConclusion
Where marks usually go
- Confusing potential GDP with actual GDP
- No India-specific constraint
Draw this
- Graph: actual vs potential GDP with output gap
Value addition
- DataIndia's female labour force participation was about 41.7% (PLFS 2023–24), still low by global standards.PLFS 2023–24
- SourceRBI estimates India's potential growth at about 6.5–7%.RBI Monetary Policy Report
Mapped topper copies
Reviewed public-source references related to this PYQ. Same-syllabus references are labelled separately.
- Mayank Purohit · AIR 33 · Page 3 ↗Same syllabus reference
- Aniket Ranjan · AIR 48 · Page 26 ↗Same syllabus 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.