Indian Economy

Indian Economy

Previous year questions

  1. Among several factors for India’s potential growth, savings rate is the most effective one. Do you agree? What are the other factors available for growth potential?  (2017)
  2. Craze for gold in Indians have led to a surge in import of gold in recent years and put pressure on balance of payments and external value of rupee. In view of this, examine the merits of Gold Monetization Scheme. (2015)

RAG Topics



  1. Non performing Assets (NPA)
  2. Bad Bank
  3. Fiscal democarcy
  4. Fiscal activism
  5. Indradhanush 2.0
  6. RBI & Financial Stability and Development Council (FSDC)
  7. Project SAKSHAM
  8. Monetary Policy Committee


  1. Base erosion and profit shifting (BEPS)
  2. The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017
  3. 7th Pay commission
  4. Reasons for poor fund utilization by states
  5. Payment banks
  6. Banking reforms
  7. Prepaid Payment Instruments


  1. Fourteenth Finance Commission (FFC)
  2. Quantitative easing
  3. Soft vs Hard Currency
  4. ‘on-tap’ licensing for universal banks

Practice questions

  1. Why a “bad bank” is tricky?
  2. Is the fiscal activism embraced by advanced economies relevant for India? Discuss
  3. Why cannot India follow quantitative easing policy like USA? (Ans: Link1)
  4. What does recapitalization of public banks mean? Does it help in economic recovery of our country?
  5. Analyse how the new Monetary Policy Committee will bring “value and transparency” to rate settings.
  6. Enumerate the steps taken by RBI to solve the problem of bad loans in India. (Link)
  7. What do you understand by fiscal democracy? Suggest measures to enhance the fiscal democracy of our country.




Previous year questions

  1. How would the recent phenomena of protectionism and currency manipulations in world trade affect macroeconomic stability of India? (2018)

RAG Topics



  1. Garments export challenges
  2. Software exports and hardware imports
  3. Zero current account deficit (CAD): Good or Bad
  4. Countervailing duty (CVD): Does it protect domestic products?
  5. Single Window Interface for Facilitating Trade (SWIFT)


  1. All about Trade deficit
  2. Reasons for fall in Oil Prices
  3. Steps to boost capital goods


Practice questions

  1. Evaluate the steps taken by government to boost India’s exports.
  2. India’s software exports success has been offset by rising hardware imports. Discuss the challenges faced in developing a domestic hardware base. What are the impacts on economy if “Make in India” fails.
  3. Running a persistent trade deficit has many adverse effects on the economy. Elaborate


Black Money
RAG Topics



  1. Income declaration scheme
  2. Watal Panel on Digital Payments (Source Link1, Link2)


Quick Bytes

  1. Steps taken by government to tackle Black Money
    1. SC-monitored SIT on Black Money
    2. Jan Dhan Yojana – Cashless Economy
    3. Renegotiation of Tax Treaties and Automatic Information Exchange Agreements with Tax Havens
    4. The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 for Foreign Black Money
    5. Income Disclosure Scheme, 2016
    6. Benami Transaction (Prohibition) Amendment Bill
    7. Demonetisation
    8. Political parties can now receive only Rs 2000 as donation in cash
    9.Electoral bonds which aim at cutting down black money that floods Indian politics


Practice questions

  1. Examine the global initiatives to control black money across the world.
  2. Critically examine the benefits of Digital Payments and suggest measures to increase the same in the country.

Planning & Economic policies
Previous year questions

  1. How are the principles followed by NITI Aayog different from those followed by the erstwhile planning commission in India? (2018)
  2. The nature of economic growth in India in described as jobless growth. Do you agree with this view? Give arguments in favour of your answer. (2015)

RAG Topics



  1. 15 year vision document by NITI Aayog
  2. Knowledge economy and its four key principles


  1. NITI Aayog

Practice questions

  1. 25 Years of Economic Liberalization: Where are We?
  2. Critically analyse how the recent move to merge public oil firms will help Indian energy security.
  3. An autonomous and professional Competition Commission of India (CCI) will stop privatissation leading to oligarchy. Elaborate
  4. Has the excessive government intervention and uncertain regulatory environment have affected outcomes of the market economy? Do you think India doesn’t trust its private sector? Justify your answer


Previous year questions

  1. Account for the failure of manufacturing sector in achieving the goal of labour-intensive exports rather than capital-intensive exports. Suggest measures for more labour-intensive rather than capital-intensive exports. (2017)
  2. How globalization has led to the reduction of employment in the formal sector of the Indian economy? Is increased informalization detrimental to the development of the country? (2016)
  3. “Demographic Dividend in India will remain only theoretical unless our manpower becomes more educated, aware, skilled and creative.” What measures have been taken by the government to enhance the capacity of our population to be more productive and employable? (2015)
  4. “Success of ‘Make in India’ programme depends on the success of ‘Skill India’ programme and radical labour reforms.” Discuss with logical arguments.(2015)
  5. While we found India’s demographic dividend, we ignore the dropping rates of employability. What are we missing while doing so? Where will the jobs that India desperately needs come from? Explain. (2014)

RAG Topics



  1. Skill India
  2. Interstate labour migration flows
  3. Jobs in Apparel, leather sectors
  4. Startup India; Stand up India


  1. FDI and labour reforms
  2. Informal sector


  1. Demographic Dividend
  2. Make in India & skill development

Quick bytes

  1. As per a World Bank report, 69% of the jobs in India are at a higher risk of being replaced by automation.
  2. 20% of the world’s working-age population will live in India by 2025.

Practice questions

  1. Analyse the changing trend of internal migration in India.
  2. India is witnessing a “historic opportunity“ to take over China in the apparel, leather and footwear sectors but it is being outrun by its neighbouring East Asian economies, the Economic Survey has said. Discuss the challenges faced by Indian apparel and footwear sector. (Answer here)

Inclusive growth
Previous year questions

  1. What are the salient features of ‘inclusive growth’? Has India been experiencing such a growth process? Analyze and suggest measures for inclusive growth. (2017)
  2. Comment on the challenges for inclusive growth which include careless and useless manpower in the Indian context. Suggest measures to be taken for facing these challenges. (2016)
  3. Capitalism has guided the world economy to unprecedented prosperity. However, it often encourages shortsightedness and contributes to wide disparities between the rich and the poor. In this light, would it be correct to believe and adopt capitalism driving inclusive growth in India? Discuss.(2014)
  4. With a consideration towards the strategy of inclusive growth, the new companies bill, 2013 has indirectly made CSR a mandatory obligation. Discuss the challenges expected in its implementation in right earnest. Also discuss other provisions in the bill and their implications.(2013)

RAG Topics



  1. Disguise employment


  1. Gini co-efficient


  1. Capitalism
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