Sign Up

Have an account?

Sign In

Don't have account,

Forgot Password

Lost your password? Please enter your email address. You will receive a link and will create a new password via email.


Have an account?

Sorry, you do not have permission to ask a question, You must login to ask a question.

Need An Account,

Please briefly explain why you feel this question should be reported.

Please briefly explain why you feel this answer should be reported.

Please briefly explain why you feel this user should be reported.

Search
Ask A Question

Economic Planning

Share
Followers
169 Answers
128 Questions
Home/Indian Economy/Economic Planning/Page 2

Mains Answer Writing Latest Questions

Meera Singh
  • 1
Meera SinghBegginer
Asked: July 20, 2024In:
  • 1

How does fiscal policy affect the functioning of an economy? Emphasize the government’s tools for reducing the fiscal deficit.

upsc: economic planning
  1. TANISHQA AGGARWAL
    TANISHQA AGGARWAL Begginer
    What role does fiscal policy plays in an economy? Highlight the tools used by the government to control fiscal deficit.

    Fiscal Policy????????

    Fiscal Policy????????

    See less
AchuK
  • 1
AchuKBegginer
Asked: July 20, 2024In: ,
  • 1

  1. Vyshnavi Thotakura
    Vyshnavi Thotakura Begginer

    Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in job creation in India through several mechanisms. First, they are significant employers in both urban and rural areas, absorbing a substantial portion of the workforce. MSMEs are known for their labor-intensive nature, particularlyRead more

    Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in job creation in India through several mechanisms. First, they are significant employers in both urban and rural areas, absorbing a substantial portion of the workforce. MSMEs are known for their labor-intensive nature, particularly in sectors like manufacturing, textiles, and services, where they provide opportunities for semi-skilled and skilled workers.

    Moreover, MSMEs foster entrepreneurship by enabling individuals to start and grow businesses with relatively low capital investments. This encourages local economic development and creates a multiplier effect on job creation as these enterprises expand and integrate into supply chains.

    Additionally, MSMEs contribute to inclusive growth by employing marginalized groups such as women, youth, and rural populations, thereby reducing unemployment and underemployment. They also promote regional development by establishing clusters and networks that support local economies.

    Furthermore, MSMEs are flexible and responsive to changing market demands, contributing to economic resilience and stability. Government initiatives and policies that support MSMEs, such as access to finance, technology, and skill development, further enhance their role as engines of job creation in India’s economy. Overall, MSMEs are pivotal in driving employment growth, fostering innovation, and promoting sustainable development across diverse sectors in India.

    See less
AchuK
  • 1
AchuKBegginer
Asked: July 20, 2024In:
  • 1

  1. Vyshnavi Thotakura
    Vyshnavi Thotakura Begginer

    To determine how long it will take for India's GDP growth rate to surpass that of the United States', we need to consider the concept of relative growth rates and the compounding effect over time. Let's denote: - \( G_{India} \) as India's GDP growth rate (7% per year) - \( G_{US} \) as United StateRead more

    To determine how long it will take for India’s GDP growth rate to surpass that of the United States’, we need to consider the concept of relative growth rates and the compounding effect over time.

    Let’s denote:
    – \( G_{India} \) as India’s GDP growth rate (7% per year)
    – \( G_{US} \) as United States’ GDP growth rate (2% per year)
    – \( GDP_{India}(0) \) as India’s current GDP
    – \( GDP_{US}(0) \) as United States’ current GDP

    The condition we’re interested in is when India’s GDP (\( GDP_{India}(t) \)) overtakes United States’ GDP (\( GDP_{US}(t) \)).

    Using the formula for GDP growth compounded annually:

    \[ GDP_{India}(t) = GDP_{India}(0) \times (1 + G_{India})^t \]
    \[ GDP_{US}(t) = GDP_{US}(0) \times (1 + G_{US})^t \]

    We need to find \( t \) such that:

    \[ GDP_{India}(0) \times (1 + 0.07)^t > GDP_{US}(0) \times (1 + 0.02)^t \]

    Simplifying this inequality:

    \[ (1.07)^t > \frac{GDP_{US}(0)}{GDP_{India}(0)} \times (1.02)^t \]

    Taking the natural logarithm on both sides gives:

    \[ t \times \ln(1.07) > \ln\left( \frac{GDP_{US}(0)}{GDP_{India}(0)} \times (1.02)^t \right) \]

    Solving for \( t \):

    \[ t > \frac{\ln\left( \frac{GDP_{US}(0)}{GDP_{India}(0)} \times (1.02)^t \right)}{\ln(1.07)} \]

    This equation calculates the minimum number of years required for India’s GDP growth rate to surpass that of the United States’. The exact number of years will depend on the initial GDP values of both countries and the growth rates specified.

    See less
Gajendra Bahadur Thapa
  • 1
Gajendra Bahadur ThapaBegginer
Asked: July 20, 2024In: , , , , , , ,
  • 1

What steps can governments and policymakers take to ensure that education remains a priority amid competing societal and economic challenges?

education reformantpoicymakers
  1. Ashlesha Patil
    Ashlesha Patil Begginer

    To ensure education remains a priority despite societal and economic challenges, governments and policymakers can take the following steps: 1. Increase Funding: Allocate more funds to education to improve infrastructure, resources, and teacher salaries, ensuring quality education for all. 2. PromoteRead more

    To ensure education remains a priority despite societal and economic challenges, governments and policymakers can take the following steps:

    1. Increase Funding: Allocate more funds to education to improve infrastructure, resources, and teacher salaries, ensuring quality education for all.

    2. Promote Public Awareness: Raise awareness about the importance of education through campaigns, highlighting its role in personal and national development.

    3. Support for Schools: Provide support to schools, especially in underserved areas, with resources and training to help them deliver effective education.

    4. Policy Integration: Ensure education policies are integrated with economic and social policies to create a holistic approach to development.

    5. Public-Private Partnerships: Encourage partnerships between the government and private sector to invest in and improve educational programs and facilities.

    6. Monitoring and Evaluation: Regularly assess the education system’s effectiveness and make necessary adjustments to meet evolving needs and challenges.

    By focusing on these steps, governments can help ensure that education remains a key priority.

    See less
Sunita Soni
  • 1
Sunita SoniBegginer
Asked: July 24, 2024In:
  • 1

What does the GDP deflator mean? In what ways does it differ from other inflation indexes like the WPI and CPI?

upsc: economic planning
  1. Babita Singh
    Babita Singh Begginer

    The GDP deflator is the ratio of the value of goods and services an economy produces in a particular year at current prices, to that, at prices prevailing during any other reference (base) year. GDP deflator = (Nominal GDP/Real GDP)*100 This ratio basically shows to what extent an increase in GDP inRead more

    The GDP deflator is the ratio of the value of goods and services an economy produces in a particular year at current prices, to that, at prices prevailing during any other reference (base) year. GDP deflator = (Nominal GDP/Real GDP)*100 This ratio basically shows to what extent an increase in GDP in an economy has happened on account of higher prices, rather than increased output. Hence, it is a good measure of inflation. For example: if an economy has a nominal GDP of $100 billion and has a real GDP of $80 billion, the economy’s GDP price deflator can be calculated as ($100 billion / $80 billion) x 100, which equals to 125. This means that the aggregate level of prices have increased by 25 percent from the base year to the current year. Other than GDP deflator, there are various indices such as Wholesale Price Index (WPI), Consumer Price Index (CPI), Producer Price Index (PPI), Commodity Price Index, Cost of Living Index, Capital Goods Price Index etc. that are used to measure inflation. But WPI and CPI are widely used indices to calculate inflation all over the world.

    Differences between the GDP deflator, CPI and WPI are as follows:

    • The GDP deflator covers the entire range of goods and services produced in the economy as against the fixed and limited commodity baskets for the WPI (no representation of the services sector) or CPI (based on only a basket of selected goods and services).
    • Changes in consumption patterns or the introduction of new goods and services are automatically reflected in the deflator because it includes a ‘changing basket’. CPI reflects changes to a consumer’s cost of living and WPI captures price changes at the factory/wholesale level, but they do not reflect new expenditure patterns because of the ‘fixed basket’.
    • GDP deflator includes only those goods which are produced domestically. Imported goods do not form the part of GDP and hence are not reflected in the GDP deflator. While both WPI and CPI consider import in their calculations.
    • GDP deflator is available only on a quarterly basis along with GDP estimates, whereas CPI and WPI data are released every month. This is the another reason behind using CPI/WPI rather than GDP deflator.

    In India, WPI was used as a key measure of inflation for a long time, but now CPI is ation for being used for the same, as it covers services and also measures inflation from consumers’ end instead of manufacturers’ end.

    See less
Vamika Kohli
  • 1
Vamika KohliBegginer
Asked: July 26, 2024In: , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
  • 1

Should developing countries such as India prioritize economic growth over stringent environmental regulations, given their need to improve living standards and reduce poverty? Why or why not?

climate changedeveloping nationseconomic developmentgreen economypolicy dilemmaspovertyquestionresource managementsustainabilitysustainable growthurbanisation
  1. Shehla Iram
    Shehla Iram Begginer

    The debate between economic growth and environmental protection in developing countries is  complex and essential . On one hand, economic growth is essential for improving living standards, reducing poverty, and providing better infrastructure, education, and healthcare. Many developing nations relyRead more

    The debate between economic growth and environmental protection in developing countries is  complex and essential . On one hand, economic growth is essential for improving living standards, reducing poverty, and providing better infrastructure, education, and healthcare. Many developing nations rely on industrialization, urbanization, and exploitation of natural resources to fuel this growth.  This often comes at the cost of environmental degradation, including deforestation, air and water pollution, and loss of biodiversity. On the other hand, environmental protection is crucial for ensuring long-term sustainability and the health of populations. Developing countries face the challenge of balancing these competing priorities. A focus only on economic growth can lead to severe environmental damage, which in turn can undermine future economic prospects by depleting natural resources and causing health problems. Likewise , stringent environmental regulations can hinder economic development by increasing costs and limiting industrial activities. So, the solution lies in adopting a sustainable development model that integrates economic growth with environmental stewardship. This includes investing in green technologies, enforcing environmental regulations, and promoting practices that minimize ecological footprints. International support, through financial aid and technology transfer, is also important to help developing countries achieve this balance.

    See less
Nidhi Sharma
  • 1
Nidhi SharmaBegginer
Asked: July 26, 2024In: ,
  • 1

Our government wants us to invest in Indian stocks & its share market but Is increasing tax on capital gains benefiting the middle class or is it our government’s new method to collect money from us?

  1. Neeru Kumari
    Neeru Kumari Begginer

    The recent increase in taxes on capital gains in the Indian stock market has been a topic of discussion among investors and taxpayers. While the government's intention behind this move is to reduce the fiscal deficit and increase revenue, it's essential to analyze whether this measure benefits the mRead more

    The recent increase in taxes on capital gains in the Indian stock market has been a topic of discussion among investors and taxpayers. While the government’s intention behind this move is to reduce the fiscal deficit and increase revenue, it’s essential to analyze whether this measure benefits the middle class or is a means for the government to collect more money from citizens.

    Benefits to the Middle Class:

    1. Taxation is progressive: The new tax regime introduces a progressive tax structure, which means that higher-income individuals will pay a higher tax rate on their capital gains. This could lead to a more equitable distribution of wealth and a reduced income inequality.
    2. Increased transparency and accountability: The new tax regime provides more transparency in taxation, making it easier for taxpayers to understand their obligations and plan accordingly. This increased transparency can lead to greater accountability and compliance among taxpayers.
    3. Investment in infrastructure and development: The government plans to use the increased revenue generated from taxes on capital gains to invest in infrastructure development, education, and healthcare. These investments can benefit the middle class directly, improving their quality of life and creating job opportunities.

    Drawbacks:

    1. Tax burden on middle-class investors: The increased tax rates on capital gains may disproportionately affect middle-class investors who rely heavily on their investments for retirement or other financial goals. This could lead to reduced investment activity, which might negatively impact the overall economy.
    2. Compliance costs: The new tax regime introduces more complex rules and forms, which can increase compliance costs for taxpayers. This may lead to additional expenses for taxpayers, particularly small investors who might not have the resources or expertise to navigate the new system.
    3. Tax evasion and avoidance: The increased tax rates and complexity of the system may encourage some taxpayers to engage in tax evasion or avoidance strategies, which can undermine the government’s efforts to collect revenue and create an unfair playing field.
    See less
PRIYA 21eco1690
  • 1
PRIYA 21eco1690Begginer
Asked: July 27, 2024In: , ,
  • 1

How can India position itself as a global economic leader?

indian economyquestion
  1. Mona Singh
    Mona Singh Begginer

    India can position itself as a global economic leader by focusing on the following strategies: Diversify its economy: India needs to reduce its dependence on traditional sectors like agriculture and manufacturing and focus on high-tech industries like IT, biotechnology, and renewable energy. InvestRead more

    India can position itself as a global economic leader by focusing on the following strategies:

    1. Diversify its economy: India needs to reduce its dependence on traditional sectors like agriculture and manufacturing and focus on high-tech industries like IT, biotechnology, and renewable energy.
    2. Invest in infrastructure development: Upgrading infrastructure in areas like transportation, energy, and logistics will improve the business environment and make it easier for companies to operate in India.
    3. Promote innovation: Encourage startups, research and development, and innovation hubs to create new products and services that can be exported globally.
    4. Enhance human capital: Focus on education and skill development to create a highly skilled workforce that can compete with the best in the world.
    5. Improve ease of doing business: Simplify regulations, reduce bureaucracy, and increase transparency to make it easier for foreign companies to invest in India.
    6. Foster international trade: Negotiate free trade agreements with other countries, especially the US, EU, and ASEAN nations, to increase exports and attract foreign investment.
    7. Develop strategic partnerships: Strengthen ties with other emerging economies like China, Brazil, and South Africa to create a new axis of economic power.
    8. Invest in digital economy: Leverage technology to create a digital payments ecosystem, e-commerce platforms, and digital services to increase efficiency and competitiveness.
    9. Promote FDI: Encourage foreign direct investment (FDI) in key sectors like infrastructure, defense, and pharmaceuticals to bring in new technologies and expertise.
    10. Develop a competitive currency: Maintain a stable currency to attract foreign investment and promote exports.
    11. Increase domestic consumption: Encourage domestic consumption by promoting entrepreneurship, increasing wages, and providing access to credit to small businesses.
    12. Enhance institutional capabilities: Strengthen institutions like the Reserve Bank of India (RBI), Securities Exchange Board of India (SEBI), and Competition Commission of India (CCI) to ensure a stable and predictable business environment.
    13. Promote sustainable growth: Focus on sustainable growth by investing in renewable energy, green infrastructure, and sustainable industries like eco-tourism.
    14. Enhance financial inclusion: Increase financial inclusion by providing access to banking services, insurance, and other financial products to all segments of society.
    15. Develop regional trade agreements: Negotiate regional trade agreements like the Regional Comprehensive Economic Partnership (RCEP) and the Indo-Pacific Economic Framework (IPEF) to increase trade with neighboring countries.
    See less
Zeeshan Ansari
  • 1
Zeeshan AnsariBegginer
Asked: July 28, 2024In: , ,
  • 1

save lifesave treesource of energy
  1. Rajesh Meena
    Rajesh Meena Begginer

    You're absolutely right. Saving trees is crucial for preserving and protecting life on our planet. Here are some key reasons why we should make tree conservation a priority: Oxygen Production: Trees are the lungs of the Earth, absorbing carbon dioxide and releasing oxygen through photosynthesis. TheRead more

    You’re absolutely right. Saving trees is crucial for preserving and protecting life on our planet. Here are some key reasons why we should make tree conservation a priority:

    1. Oxygen Production: Trees are the lungs of the Earth, absorbing carbon dioxide and releasing oxygen through photosynthesis. They are essential for maintaining a healthy and breathable atmosphere.
    2. Climate Regulation: Trees play a vital role in regulating the climate by absorbing and storing carbon dioxide, which helps mitigate the effects of climate change. Deforestation significantly contributes to global warming.
    3. Biodiversity: Forests and trees provide habitat and support a vast array of plant and animal species, maintaining the delicate balance of ecosystems. Protecting trees helps preserve biodiversity and prevent the loss of species.
    4. Soil Conservation: Trees help prevent soil erosion, stabilize the ground, and replenish the soil with nutrients through leaf litter and root systems. This is crucial for sustainable agriculture and maintaining fertile land.
    5. Water Cycle Regulation: Trees help regulate the water cycle by absorbing and releasing water, preventing floods, and maintaining groundwater levels. They also filter and purify water, providing clean drinking water.
    6. Air Pollution Mitigation: Trees can absorb and filter various air pollutants, improving air quality and reducing the harmful effects of air pollution on human health.
    7. Human Well-being: Interacting with nature and spending time in forested areas has been shown to have numerous benefits for physical and mental health, reducing stress and promoting overall well-being.
    See less
Bharti Singh
  • 0
Bharti SinghBegginer
Asked: June 19, 2024In:
  • 0

Emphasize the importance of the Mega Food Park Initiative. Talk about the accompanying difficulties as well. (Answer in 200 words)

upsc: economic planning
  1. Gauri Tekale
    Gauri Tekale Begginer

     Significance of the Mega Food Park Scheme   The Mega Food Park Scheme, initiated by the Government of India, aims to enhance the food processing sector by providing a mechanism to link agricultural production to the market. Here are the key points highlighting its significance:   Boost toRead more

     Significance of the Mega Food Park Scheme

     

    The Mega Food Park Scheme, initiated by the Government of India, aims to enhance the food processing sector by providing a mechanism to link agricultural production to the market. Here are the key points highlighting its significance:

     

    1. Boost to Agricultural Sector: By creating a direct link between farmers and processing units, the scheme helps in reducing the wastage of perishable agricultural produce, ensuring better returns for farmers.

     

    1. Employment Generation: Establishing food processing units and ancillary infrastructure generates significant employment opportunities, especially in rural areas, contributing to the reduction of rural-urban migration.

     

    1. Economic Development: The development of food parks fosters economic growth by encouraging investments in the food processing sector, thus boosting GDP and contributing to the nation’s economic development.

     

    1. Infrastructure Development: The scheme promotes the development of world-class infrastructure facilities for food processing, including cold chains, packaging centers, and logistics facilities, which enhances the overall efficiency of the supply chain.

     

    1. Promotion of MSMEs: It provides a conducive environment for the growth of Micro, Small, and Medium Enterprises (MSMEs) in the food processing sector by offering them access to modern infrastructure and facilities.

     

    1. Reduction in Food Wastage: By facilitating better processing, storage, and transportation of food products, the scheme aims to minimize post-harvest losses and food wastage, ensuring food security.

     

    1. Value Addition: The scheme encourages value addition to agricultural produce, resulting in higher profitability and a wide range of processed food products for domestic consumption and export.

     

    1. Quality and Safety Standards: Establishing state-of-the-art food processing units ensures adherence to international quality and safety standards, enhancing the competitiveness of Indian food products in global markets.

     

    One success story highlights the impact and potential of the Mega Food Park Scheme in India. Here are a few notable examples:

     

    1. Patanjali Food and Herbal Park (Uttarakhand)

    Overview: One of the most successful mega food parks, the Patanjali Food and Herbal Park, is located in Haridwar, Uttarakhand. It is operated by Patanjali Ayurved Ltd.

     

    Achievements:

    – Economic Growth: The park has significantly contributed to the economic development of the region, attracting substantial investments.

    – Job Creation: Thousands of jobs have been created, providing livelihoods to many residents.

    – Value Addition: The park focuses on processing herbal and Ayurvedic products, adding considerable value to raw agricultural produce.

    – Export Growth: Patanjali products processed here have a strong presence in international markets, boosting India’s export earnings.

    See less
Load More Questions

Resources & Suggestions

Mains Answer Writing Latest Articles

On: March 8, 2025

Daily Answer Writing Practice Questions (8 March 2025)

Examine the key issues that obstruct the development of port infrastructure in India and outline the recent measures taken by the government to address these challenges. (Answer in 200 words) भारत में बंदरगाह अवसंरचना के विकास में आने वाली विभिन्न ...

On: March 7, 2025 Comments: 0

मानव-वन्यजीव संघर्ष का प्रबंधन

प्रधानमंत्री की घोषणा: मानव-वन्यजीव संघर्ष प्रबंधन के लिए एक समर्पित केंद्र की स्थापना। चुनौतियाँ: जनसंख्या वृद्धि और संसाधनों की प्रतिस्पर्धा। वन्यजीव संरक्षण का महत्व पारिस्थितिक संतुलन और जलवायु अनुकूलन: वन्यजीव पारिस्थितिकी तंत्र को बनाए रखने और जलवायु पैटर्न को विनियमित ...

On: March 7, 2025 Comments: 0

Safeguarding Wildlife, Securing Harmony”

Context: Based on the editorial “Living with animals – the challenges and the solution” published in The Indian Express. Announcement: PM announced a center for managing human-wildlife conflict. (Press Information Bureau (PIB) release or official government announcement.) Importance of Wildlife ...

Explore Our Blog