← All questionsGS2 · 2022 · Social Justice ·Inflation, Unemployment and the Poor
QUESTION 16
GS2
15 marks

Besides the welfare schemes, India needs deft management of inflation and unemployment to serve the poor and the underprivileged sections of society. Discuss.

WRITE IN
11 min
250 words

What the examiner wants

Explain why managing inflation and unemployment matters as much as welfare schemes for protecting the poor.

DiscussExplain the different sides of the issue, use evidence, and finish with a balanced view.

Demand-wise check

  1. 1Inflation hurts the poor most: food share in consumption, no indexation, erodes savings≈65 words
  2. 2Unemployment and underemployment: informal work, youth unemployment≈65 words
  3. 3Policy tools: inflation targeting, supply-side food measures, employment-intensive growth, MGNREGA as a buffer≈65 words

Open in about 30 words and close in about 30.

Answer plan

Link welfare with macro stabilityInflation's impact on poorUnemployment's impactPolicy toolsConclusion

Where marks usually go

  • Turning it into a list of welfare schemes
  • Not mentioning the RBI's inflation targeting framework

Draw this

  • Diagram: inflation and unemployment as two pressures on household welfare

Value addition

  • FactRBI's flexible inflation target is 4% CPI with a band of 2–6%, under the amended RBI Act (2016).Reserve Bank of India
  • DataFood makes up about 46% of the CPI basket, which is why food inflation hurts poorer households most.MoSPI CPI weights (2012 series)

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