Highlight the role of consumption and investment as the two largest contributors to India’s growth and explain how spending on the infrastructure could help revive the economy hit hard by the pandemic. 10 marks

Mentor’s comment-

  • In the intro, explain the dominant role played by consumption in India’s growth.
  • In the first part explain how consumption and investment dominate India’s growth story by contributing more than 2/3 in its growth its role as the driver of India’s economy. In the next part, state the importance of spending on infrastructure from the Keynesian perspective.
  • Conclude by stressing the importance of Keynesian theory for steering the economy out of recession.
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