← All questionsGS3 · 2021 · Economy & Infrastructure ·V-shaped Recovery of the Indian Economy
QUESTION 11
GS3
15 marks

Do you agree that the Indian economy has recently experienced V-shaped recovery? Give reasons in support of your answer.

WRITE IN
11 min
250 words

What the examiner wants

Take a stand on whether India's post-COVID recovery was V-shaped and support it with data.

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

Demand-wise check

  1. 1Case for V: GDP fell about 7% in 2020–21 then grew about 9% in 2021–22; output passed pre-COVID level; tax collections and PMI rebounded≈50 words
  2. 2Case against (K-shaped): informal sector, MSMEs, contact services and jobs lagged; consumption weak; inequality widened≈50 words
  3. 3Your stand: V in aggregate output, K in distribution≈50 words
  4. 4Measures that helped and that remain≈50 words

Open in about 30 words and close in about 30.

Answer plan

Define V-shapeEvidence forEvidence againstStandConclusion

Where marks usually go

  • No clear verdict such as 'V in aggregate GDP, K in jobs and incomes'
  • No data on GDP or jobs

Draw this

  • Line sketch of quarterly GDP showing the dip and rebound

Value addition

  • DataIndia's GDP contracted about 5.8% in 2020–21 (revised) and grew about 9.7% in 2021–22, per NSO revised estimates.NSO National Accounts
  • SourceThe Economic Survey 2020–21 argued for a V-shaped recovery; the Survey 2021–22 tracked 80 high-frequency indicators.Economic Survey 2020–21, 2021–22

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