Q.3) Since last year, the policy responses of the government have been to rely on credit easing, focusing more on supply-side measures, with more and more guarantees by the government to improve credit flow to important sectors. Examine the effectiveness of such measures to prop up the growth. (10 Marks)

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7 responses to “Q.3) Since last year, the policy responses of the government have been to rely on credit easing, focusing more on supply-side measures, with more and more guarantees by the government to improve credit flow to important sectors. Examine the effectiveness of such measures to prop up the growth. (10 Marks)”

1. 

   July 16, 2021

   Sehaj Singh

   Kindly check
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   1. 

      July 19, 2021

      Sehaj Singh

      @swatantra please check
   2. 

      July 21, 2021

      Swatantra

      Sehaj

      Decent attempt, I think presentation can be better. Try to write the 1st para in one line. Then, briefly mention the importance of demand-side measures to boost growth. You can make a diagram. Increased demand-increased production- increased wages and employment- further demand- growth cycle.

      Start the body of the answer with stating no benefit of supply side measures – still negative growth in certain sectors, high unemployment, low PMI, low investor confidence etc
      After that you can give a subheading of why these measures haven’t worked. Points you have mentioned are fine.

      Way forward is fine. Also you can mention starting a scheme like MGNREGA for urban workers, direct cash transfers etc. Write a concluding statement.

      Keep writing. 🙂
2. 

   July 17, 2021

   SUMITA DOWERAH

   Payment Id: pay HFrdyJMOEZ9967. Please review, Sir.

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   1. 

      July 21, 2021

      Swatantra

      Sumita

      Introduction is fine. You can make a diagram showing the cyclical relationship between fall in demand and it’s effect on growth.

      After that mention some of the supply side measures taken by the government like line of credit to MSMEs to increase liquidity etc and its not so beneficial effect. You can mention about- still negative growth in certain sectors, high unemployment, low PMI, low investor confidence etc

      After that subheading should be issues with supply-side measures. Points are fine.

      Way forward and conclusion is also fine. Keep practicing. 🙂
3. 

   July 18, 2021

   ankita thakur

   Payment id-HJHAZEWKSzM3CX

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   1. 

      July 21, 2021

      Swatantra

      Ankita

      Introduction is fine.Then, briefly mention the importance of demand-side measures to boost growth. You can make a diagram. Increased demand-increased production- increased wages and employment- further demand- growth cycle.

      After that mention that government has focused mainly on supply side measures to boost growth. You can give some examples. After that points you have mentioned can be written, they show the inefficacy of supply side measures. You can make it concise.

      Then write why supply side measures haven’t worked-the time span is medium-term for measures to work, the ineffectiveness of credit backstops in the absence of private demand.

      Way forward is fine, you can mention some steps govt can take-starting a scheme like MGNREGA for urban workers, direct cash transfers etc.
      Conclusion is fine.

      Keep practicing. 🙂