Deflating GDP Government of India has taken a lot of strict measures in the past one year. Demoneti

Deflating GDP Government of India has taken a lot of strict measures in the past one year. Demonetisation and implementation of GST were the most popular ones . These measures intended to give a boost to the economy in the long run. It was promised by the Prime Minister that these new policies will put India on the world map and investment will flow in as “Digital revolution” will ease the financial transations and doing business. But we have seen that , as a result of these economic policies the GDP of the country has gone down in the past two quarters. Yes, the economic benefits were promised on the medium and long run but short term effects cannot be ignored. Recently , RBI released its annual report on 30 August 2017. It shows some ‘nervous’ numbers. The GDP growth of the country has gone down to a worrying 5.6 %. The Finance Minister promised that these numbers would range between 6.5% to 7.1% in coming quarters, while presenting the Annual Budget 2017-18 in parliament. Also many promises were made to the nation running upto the Budget presentation by the Hon’ble Prime Minister and the Union Government , and country’s economic growth was one of them which is measured in terms of country’s GDP growth. There are many reasons which can be thought of in the wake of reduced GDP growth Percentage than expected. Some of them are:- 1. Base year effect: At the same time during last year , country’s GDP growth figures showed 7.8% with expectations of going only up in the coming months. But , no one had expected the certain decisions that were taken during the coming months and their hasty implementation which severly impacted the growth rate as all three sectors took a blow which reduced or atleast stalled their growth rate. 2. ‘Virtual Ban’ on cash transactions: Several businesses , especially agriculture sector largely dependent on cash suffered hugely due to lack of preparedness by government in training the rural population adequately to transact digitally. 3. Mystery of GST: On 1 july 2017 when GST was implemented , many traders stood confused about the application of this new taxation system. It was only later , the assistance helpline numbers were set up and several clarifications on the ambiguous areas were issued by the government regarding the GST. On a macro level also, many states have to lose out on revenue as well under this new tax regime. Hence, the reducing GDP growth has to be scrutinized practically in the wake of the major policy changes taking place in India and no conclusion should be derived in haste. The renowned world economic and financial governing bodies have also reassessed their GDP forecast for India. Eg. IMF reduced its forecast from 7.3% last year to 6.7% post demonetisation. Hence , the GDP growth trend should be carefully observed in the coming quarters to derive any meaningful conclusion regarding India’s economic growth. It should be remembered that “Statistics hides more than it shows”. Rising GDP trend graph will be a welcome sign for the economy.

 

Do u really able to rRemember this number in ur main exam? I think data should be deleted. As they are very trivial in nature

 

but this data is actual and data fetches you extra marks ive heard.

 

u have heard data fetches extra marks but did u see? read various aspirants who were finalist last year, they told many times u do not need to be phd in any topic just have a clear transparent idea is more than enough. and do not forget that if u get selected u might be writing circular on behalf of rbi for general mass of our country and they do not understand any data. they understand a simple lucid language which is easy to understand. i am showing u a sample. i dont know from which year was that aspirant or his/her name. but found it google with a stamp of rbi. check this out without using any trivial data how much that aspirant fetches marks....

 

if possible watch this videohttps://www.youtube.com/watch?v=T185sgl7Azg

 

Please remember this is English Language Paper...so they want to check your English Usage, Grammar, Sentence Structure...for Economics and Finance knowledge there are other two papers..I have got 77 Marks in English and in 2016 My student scored 82 (topper) and in 86 Marks (topper) in 2015 RBI Grade B exam. A lot of practice and evaluation/suggestions from expert is the key to success.

 

So , u suggest that no data is required to be given?

 

Yes...some very essential...2-3 figures you can give.

 

Most of candidates are writing essays directly in the exam without any practice. This will not help. Regular writing practice is required.

 

Essay is good if it is read as some article, clear and lucid with so many information and thorough analysis. But if you are writing on a topic you should give stress that particular thing. Recently deflation is observed in Construction and Real Estate sector mainly. Where deflation happended and what are the exact causes and some remedial measures should be discussed. In my opinion your essay has become a discussion about recent economic changes in our country and its impact on GDP. Other than this, the writing is good

 

I went through it twice and I found following areas to improve:1. Introduction is too random. First introduce the context then bring in the concerned measures.2. Since the essay largely emphasises the demonetisation and aftereffects, maintain a smooth flow of events.3. Conclusion regarding deflating GDP should be a bit more justifying after you have enlisted the three causes.I hope all this helps.