Infographic GDP & GNP
Mains Answer Writing Latest Questions
Anil BhargavBegginer
What does GDP (gross domestic product) mean to you? How is the computation made? Additionally, set it apart from the GNP, or gross national product.
Prakher SinghBegginer
Examine and evaluate the government’s efforts to support the application of innovation and technology in economic planning, including the creation of the National Data and Analytics Platform, the use of artificial intelligence and geospatial data, and their potential to improve ...
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The government has undertaken several initiatives to promote the use of technology and innovation in economic planning and policymaking. One key development is the National Data and Analytics Platform (NDAP), which aims to provide a centralized repository and analytical capabilities for data from vaRead more
The government has undertaken several initiatives to promote the use of technology and innovation in economic planning and policymaking. One key development is the National Data and Analytics Platform (NDAP), which aims to provide a centralized repository and analytical capabilities for data from various government sources.
The NDAP is designed to facilitate evidence-based policymaking by making data more accessible and enabling advanced analytics. By consolidating data from different ministries and departments, the platform allows policymakers to gain a more comprehensive understanding of economic and social trends. This can support the development of policies that are better informed by the available data.
Another notable initiative is the increased use of geospatial data and artificial intelligence (AI) in economic planning. Geospatial data, which provides detailed information on the location and characteristics of various economic and social phenomena, can be used to identify patterns, trends, and regional disparities. Integrating this data with AI-powered analytics can help policymakers make more informed decisions, such as targeted interventions in specific geographic areas or the identification of high-potential regions for investment and development.
The potential benefits of these initiatives include:
- Improved data accessibility and quality: The NDAP can help overcome challenges related to data fragmentation, inconsistencies, and accessibility, which have historically hindered evidence-based policymaking.
- Enhanced analytical capabilities: The platform’s analytical tools and AI-powered techniques can enable more sophisticated and nuanced analysis of economic and social data, leading to deeper insights and more informed policy decisions.
- Targeted and responsive policymaking: The use of geospatial data and AI can help policymakers identify specific areas or populations that require targeted interventions, as well as monitor the effectiveness of implemented policies in near real-time.
- Increased transparency and accountability: By making data and analytical processes more accessible, these initiatives can promote greater transparency in policymaking and enhance public trust in the government’s decision-making.
However, the success of these initiatives will depend on several factors, such as the quality and completeness of the data, the robustness of the analytical tools, the integration of these technologies across different government agencies, and the adoption of a culture of data-driven decision-making within the government.
Additionally, it will be important to address concerns related to data privacy, security, and ethical use of AI, to ensure that these technologies are deployed in a responsible and equitable manner.
Overall, the government’s efforts to leverage technology and innovation in economic planning and policymaking have the potential to significantly enhance evidence-based decision-making and ultimately lead to more effective and responsive policies that better address the needs of the country’s citizens.
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Explain how the performance of the Indian agriculture sector has been since independence. How have the policies shaped its growth?
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Analysing the performance of the Indian agriculture sector since independence, considerable changes can be identified. This sector was for many years considered as a low producer and suffered from food crises in the 1960’s and the 1970’s, till the green revolution purpleged the rebirth of this sectoRead more
Analysing the performance of the Indian agriculture sector since independence, considerable changes can be identified. This sector was for many years considered as a low producer and suffered from food crises in the 1960’s and the 1970’s, till the green revolution purpleged the rebirth of this sector enhanced by high yielding varieties of seeds, chemical fertilizers and improved techniques of irrigation. This resulted in the overall enhancement of food grain production especially of wheat and rice, put India in a position of food grain sufficiency.
Particularly, these polices have been central tenets upon which the growth in agriculture has hinged on. Reforms of the 1950 obtained some measure of success in their goal of giving out land to the landless. Corporations such as the Agricultural Prices Commission and the Food Corporation of India guaranteed Minimum Support Prices (MSPs) for the key crops, helping define the price fundament and act as income necessities for producers.
However, during the past decades, attention has been paid on crop diversification; activities such as horticulture, dairy, poultry and fisheries. National Agricultural Policy (2000) and the subsequent ones considerably contributed positive trends to sustainable agriculture and the advancements in technology and infrastructure. In this regard, the Pradhan Mantri Fasal Bima Yojana (PMFBY) for crop insurance and the Pradhan Mantri Krishi Sinchai Yojana (PMKSY) to add strength to irrigation have extended backing to the agrarzial growth.
However, issues like small sized farms, infrastructures, and climatic fluctuations are still apparent requiring more policy directions and capital.
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Why do political leaders mostly talk about freebies rather than some other important issues during their election campaign? In which important sectors should government provide free services? How are freebies helping people? Do providing freebies to the people make us ...
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This answer was edited.
This is an interesting and complex question regarding the role of freebies in political campaigns and governance. Here is my perspective on it: Reasons why political leaders focus on freebies: Freebies are often popular and eye-catching, promising immediate benefits to voters which can win votes. PrRead more
This is an interesting and complex question regarding the role of freebies in political campaigns and governance. Here is my perspective on it:
Reasons why political leaders focus on freebies:
- Freebies are often popular and eye-catching, promising immediate benefits to voters which can win votes.
- Providing tangible freebies is simpler to communicate and implement compared to complex policy reforms.
- There is a tendency for short-term populism over long-term, sustainable development.
- Political leaders may prioritize winning elections over prudent fiscal management.
Important sectors for free government services:
- Basic education and healthcare – Providing free access to quality education and healthcare can significantly improve human development.
- Essential utilities like water, electricity – Ensuring affordable access to these basic services is important for social welfare.
- Support for the underprivileged – Free rations, housing, skills training etc. can lift people out of poverty.
How freebies help people:
- They provide immediate financial relief and access to essential services for the poor and middle class.
- This can improve their standard of living, nutrition, education levels, and overall wellbeing.
- Freebies can also stimulate consumption and economic activity in the short-term.
Do freebies make us a superpower?
- Sustainable economic growth, technological innovation, strong institutions and governance are more important factors for becoming a superpower.
- Excessive freebies can distort market forces, discourage self-reliance, and burden government finances in the long run.
- A balanced approach combining targeted welfare with investment in human capital and productive economic sectors is needed.
Pros and cons of freebies:
Pros:
- Provide immediate relief to the underprivileged
- Can improve access to basic services
- May stimulate short-term economic activity
Cons:
- Can strain government finances and lead to fiscal deficits
- May discourage self-reliance and productivity
- Can be misused for political gains rather than genuine welfare
- Opportunity cost of funds not invested in long-term development
In conclusion, while freebies have their place in a welfare state, they should be part of a broader, balanced approach to governance and development. Overreliance on freebies without addressing structural reforms can be detrimental in the long run. A judicious mix of targeted welfare and investment in human capital & infrastructure is needed for sustainable progress.
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Here is an overview of the economy, policies, and politics in recent times: The Economy in Recent Times: Post-Pandemic Recovery: The global economy has been in a recovery phase following the COVID-19 pandemic, which caused significant economic disruptions and contractions in 2020. Inflation ChallengRead more
Here is an overview of the economy, policies, and politics in recent times:
The Economy in Recent Times:
- Post-Pandemic Recovery: The global economy has been in a recovery phase following the COVID-19 pandemic, which caused significant economic disruptions and contractions in 2020.
- Inflation Challenges: Many countries have been grappling with high inflation rates, driven by factors like supply chain issues, the Russia-Ukraine war, and the lingering effects of the pandemic.
- Interest Rate Hikes: Central banks around the world have been raising interest rates in an effort to curb inflation, leading to concerns about the potential for economic slowdowns or recessions.
- Geopolitical Tensions: Geopolitical conflicts, such as the ongoing tensions between Russia and the West, have contributed to economic uncertainty and volatility in global markets.
Key Economic Policies:
- Fiscal Stimulus and Support Measures: Governments have deployed various fiscal policies, including tax cuts, spending programs, and income support, to aid in the economic recovery from the pandemic.
- Monetary Policy Adjustments: Central banks have adjusted their monetary policies, such as raising interest rates and reducing asset purchase programs, to address inflationary pressures.
- Trade Negotiations and Agreements: Countries have been engaged in ongoing trade negotiations and agreements, aiming to strengthen economic ties and overcome trade barriers.
- Climate and Sustainability Policies: There has been an increased focus on policies and initiatives aimed at addressing climate change, promoting renewable energy, and transitioning to more sustainable economic models.
The Role of Politics:
- Political Polarization: Many countries have experienced heightened political polarization, which can hinder the formulation and implementation of cohesive economic policies.
- Elections and Policy Shifts: Changes in political leadership, through elections or leadership transitions, can lead to shifts in economic policies and priorities.
- Geopolitical Tensions and Economic Implications: Ongoing geopolitical conflicts and power dynamics have significant economic implications, as they can disrupt trade, investment, and global supply chains.
- Regulatory and Legislative Changes: Governments have introduced new regulations and legislative measures that can impact various sectors of the economy, such as technology, finance, and energy.
TanayBegginer
Faster economic growth requires increased share of the manufacturing sector in GDP, particularly of MSMEs. Comment on the present policies of the Government in this regard.
Mayur KatgaonkarBegginer
The UPI and digitalization of payment have seen massive spending across the nation and this is true especially with Youth and College students. Did you experience the same at some point in your life? Is it a masterstroke of the ...
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After the pandemic, the shift to non-cash transactions has increased rapidly. Perfectly easy to use wherever and whenever needed, UPI lowers barriers and promotes unintended and spontaneous purchases. Spending money through digital means, such as UPI, can feel less tangible than handling cash. ThisRead more
After the pandemic, the shift to non-cash transactions has increased rapidly. Perfectly easy to use wherever and whenever needed, UPI lowers barriers and promotes unintended and spontaneous purchases. Spending money through digital means, such as UPI, can feel less tangible than handling cash. This can lead to a diminished perception of expenditure and easier justification for spending.
The integration of UPI with BNPL services and other forms of short-term credit can lead to increased consumption, with the actual payment deferred to a later date. Easy access to loans and overdrafts through UPI-linked accounts can result in more spending, often on non-essential items.
To dilute these effects, users should utilize budgeting apps, set spending limits, and regularly review transactions. Financial education is also crucial for understanding the importance of saving and money management.
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Talk about the drawbacks of utilizing GDP to gauge a nation’s level of prosperity.
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Gros Domestic Product (GDP) is the sum total of value of goods and services created within the geographical boundary of a country in a particular year. It is usually taken as an indicator of the well-being in the context of per capita income suggesting the prosperity of the people. It may indicate mRead more
Gros Domestic Product (GDP) is the sum total of value of goods and services created within the geographical boundary of a country in a particular year. It is usually taken as an indicator of the well-being in the context of per capita income suggesting the prosperity of the people. It may indicate more income and capacity to buy more goods and services among the people. However, there are some limitations of using GDP as an indicator of economic welfare of a country:
- Uneven Distribution of GDP: If the GDP of the country is rising, the economic well being may not rise as a consequence. This is because the rise in GDP may be concentrated in the hands of very few individuals or firms. For the rest, the income may in fact have fallen. In such cases, the welfare of the entire country cannot be reflected in per capita GDP.
- Non-monetary exchanges or non-marketed activities: Many activities in an economy are not evaluated in monetary terms. For example, the domestic work that women perform at home is not paid for. Barter exchanges that take place in the informal sector are not registered as part of the economic activity. In developing countries, where many remote regions are underdeveloped, these kinds of barter exchanges are common occurrences, but they are generally not counted in the GDPs of these countries. Since these exchanges are not counted in the GDPs, there occurs underestimation of GDP. Hence, GDP calculated in the standard manner may not give us a clear indication of the productive activity and well-being of a country.
- Externalities: Externalities refer to the benefits (or harms) a firm or an individual causes to another for which they are not paid (or penalized). Externalities do not have any market in which they can be bought and sold. For example, the output of a refinery is the amount of oil it refines. The value added of the refinery will be counted as part of the GDP of the economy. But in carrying out the production the refinery may also be polluting the nearby river. This may cause harm to the people who use the water of the river. Hence their well-being will fall. In this case, the GDP is not taking into account such negative externalities. Therefore, if we take GDP as a measure of welfare of the economy we shall be overestimating the actual well-being. There can be cases of positive externalities as well. In such cases, GDP will underestimate the actual well-being of the economy.
In addition to this, GDP also does not take into account economic inequality, loss of jobs and opportunities and level of health and education and quality of choices in an economy. Therefore, new concepts like Gross National Happiness (GNH), Human Development Index (HDI) and the Social Progress Index (SPI) are often discussed as the better alternative to assess the well-being of society.
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Meera SinghBegginer
Describe if and why the following are taken into account when calculating GDP. Amounts paid to retired government officials as pensions (a), proceeds from the sale of an old car (b), interest on the national debt (c), food grains grown ...
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Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period, typically a year. GDP, by expenditure method, is calculated as: GDP = Private consumption (C) + Government spending (G) + InvestmenRead more
Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period, typically a year. GDP, by expenditure method, is calculated as: GDP = Private consumption (C) + Government spending (G) + Investment (1) + Exports (X) Imports (M).
- Payment of pensions to retired government employees: It is included in the GDP as it is a deferred wage. It is part of payment for factor services rendered by the recipients prior to their retirement. However, old age pension is not included in the GDP accounting as it constitutes transfer payments.
- Income from the sale of an old car: It is not included in the GDP since its value has already been included in the GDP of the year in which it was produced. Including it in the GDP will be equivalent to double counting. However, commission earned on the sale of the old car by agents will be included in GDP accounting of the current year.
- Interest on national debt: It is not included in the GDP as interest is paid upon the borrowing/loans taken by the government to fund its consumption expenditure and no productive activity is linked with such loans.
- Foodgrains produced by farmers for their own consumption: Foodgrains used for own consumption form a part of the private consumption. Producing foodgrains has an opportunity cost in terms of factors used for production. Equivalently, it would have generated income, had the same foodgrains been sold in the market. So, an imputed value of foodgrains used for own consumption is included in the GDP.
- Services provided by housewives: These are not included in the GDP because they constitute personal services rendered within the household or family. These services are not marketed and it is hard to assess monetary value of such personal services.
Thus, GDP is limited in the sense that it only measures the market value of final goods and services produced in an economy in a given period of time.
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Economics plays an enormous role in shaping our daily lives and our country's future. One can envision it to be something that helps the leaders to make wise choices concerning the use of our resources, from money to land to labor. Economists look for trends and data in order to see what might happeRead more
Economics plays an enormous role in shaping our daily lives and our country’s future. One can envision it to be something that helps the leaders to make wise choices concerning the use of our resources, from money to land to labor. Economists look for trends and data in order to see what might happen under certain circumstances. By doing so, possible problems that come up with, say high unemployment or very high inflation, could be averted, and instead, steady and clean growth would be assured.
Take, for example, the suggestion of economists to increase investment in education: equipping people with better skills for better jobs. If they advocate for the improvement of healthcare, it’s about how everybody gets to be healthy and productive. When they recommend the construction of infrastructure, people are given jobs and communities will be connected so that everyday living can be easier and more efficient.
Perhaps above all, economics is about creating the opportunity for every person to improve their lives. It works to make sure that resources are harnessed in such a way as to allow businesses to grow, people to get good jobs, and families to feel confident in their futures. Guiding choices of spending and saving, it helps ensure that growth benefits are shared by all so, in this society, each will live well and support one another.
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