Mentor’s comment:
- https://www.epw.in/journal/2020/2/h-t-parekh-finance-column/revisiting-nbfc-crisis.html
- The article examines the crisis NBFCs found themselves in and the genesis of the crisis.
- In the intro, briefly explain what are NBFCs.
- In the main body explain how NBFCs are a significant cog in the wheel of the Indian economy. State some figures to stress the overall importance of NBFCs in the economy and importance of their role for economy. Next, explain the risks involved in the operation and how both risks involved turned into reality for the NBFCs, culminating in their failure. Also explain the role played by the rating agencies in the operation of NBFCs.
- In conclusion stress the need for due diligence, proper regulation of the sector to safeguard the economy from future shocks of this kind.
Comments
14 responses to “‘While seemingly underdogs in the Indian financial markets, NBFCs punched above their weight in destabilising the Indian economy’. In light of the above statement examine the role of NBFCs in the Indian economy. Also, explain the reasons for the recent crisis they are facing and the role of Credit Rating Agencies in the crisis. (15 Marks)”
Payment Id- MOJO0101D00A20979010
This being a technical question, you were able to discuss it with excellent language which was not too technical. Keep it up.
Coming to your structure, you ended the answer without discussing the solutions or way forwards.
That is the only issue with the answer.
Otherwise, you have managed to discuss all the relevant demands of the question perfectly.
The structure is smooth and well placed.
Good content in each part.
Could have been better if you would have based your intro on the starting line of the question.
plz review
Not reviewed.
There is just no subheading in the discussion done after the intro.
What is it trying to say? What is the direction of the discussion? Please write subheadings always.
Imagine an examiner checking thousand of copies in UPSC mains and he has to look out for the direction of the content! Hence subheadings makes yours and his case easy. These are little tricks to get better marks.
You are still doing too much cutting and corrections in your answers. This despite me telling and pointing out this wrong habit many a time.
You will lose marks as well as the interest of the examiner if its a 20 question answer sheet.
Hence think carefully before writing. Make your answer stand out of the crowd in a +ve manner.
The overall content is good.
The explanation is also fine.
But start working on your pointed ou mistakes otherwise there is no point of answer writing practice.
MOJO0108C00A53108865
Very well written answer.
It has covered all the elements mentioned in the mentor’s comments.
Points are very good and comprehensive.
You have not done over-explanation with the content which is very good.
Very good answer.
MOJO9c30X00D35455509
Read the question carefully. You missed one important element in the last part of your answer: “role of Credit Rating Agencies in the crisis”
It is explicitly mentioned in the last part of the question.
Secondly, the way forward again need to be more and better.
The rest of the answer is fine.
Good points in the 1st part.
decent use of flowchart.
read the questions and mentor comments carefully.
MOJO0102A00A52642901
Read the question carefully. You missed one important element in the last part of your answer: “role of Credit Rating Agencies in the crisis”
It is explicitly mentioned in the last part of the question.
Rest of the answer is fine.
You discussed all the points in a good manner.
Explanation is decent.
Very good way forwards.
payment id MOJO0108200A53118559
Please avoid paragraphs in your main body.
They are ideal for the GS answers as they make the content bulky and your coverage of the topic gets affected.
Always end the answer with a conclusion.
Very good answer.
You understood the demand of the question in a perfect manner.
The flow of the answer is perfect.
Content is deep and exhaustive.
All in all very good attempt once again.
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