Q.3 The Indian economy is expected to expand at 9.2 per cent in 2021-22 as per the first advance estimate (FAE). What does the GDP data tell us about the state of the economy that could influence budget priorities for FY 22-23? (10 Marks)

Mentor’s comment-
  • https://indianexpress.com/article/opinion/columns/what-gdp-data-says-about-economy-7714993/
  • In the intro, mention the FAE.
  • In the body mention the factors that could lead to changes in the first advanced estimate. In the next part mention factors such as weak consumption demand, weak recovery in sectors such as construction,  trade, hotels, tourism and other contact-based services, which are also labour-intensive. Also mention that investment in dominated by government investment etc. The normalisation of monetary policy in the US and Europe could also pose challenges for India
  • Conclude by mentioning that upcoming budget for the next fiscal year will show us how the government intends to create and use the fiscal space.
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Jyoti Singh
Jyoti Singh
12 days ago

Kindly evaluate my answer