Mentor’s comment-
- https://www.thehindu.com/
opinion/lead/a-cycle-of-low- growth-higher-inflation/ article35671035.ece - In the intro, mention the significance of inflation in deciding monetary policy and affecting the growth of the economy.
- In the body, mention various factors contributing to the inflation in India as such as expansionary monetary policy and supply bottlenecks, rising fuel prices, decreasing wages etc.
- Conclude by mentioning the need for policy intervention to end the vicious cycle of high inflation and low growth.
Comments
2 responses to “Q.3 Do you agree with the view that the Indian economy is in the cycle of low growth and higher inflation? Give reasons in support of your argument.(10 Marks)”
kindly review
ref no.- pay_Hf9YBu2UIYMtMv
Pradipti
In introduction you have written that inflation has led to monetary policy expansion, that’s not true, actually vice versa can be true,frame it better. Also, you can avoid it as you have mentioned it in issues. Give some data related to low growth in recent quarters, that will be better.
Factors causing inflation are fine, also mention supply chain issues during lockdowns.
In inflation and low growth section, also mention about rising NPAs. You can talk about MInsky moment here only-decline of asset prices of SMEs, causing mass panic and the inability of debtors to pay their interest and principal may further increase bad debt. Don’t introduce new point in conclusion, mention in the body of the answer only. Rest of the points are fine.
Conclusion is fine, you can also mention the K-shaped recovery we are witnessing and the need to correct it.
Keep practicing. You are writing well. 🙂