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FAQs on Indian Economy - Indian Economy for UPSC CSE
| 1. What is the current state of the Indian economy? |  |
Ans. The current state of the Indian economy is facing challenges due to the impact of the COVID-19 pandemic. The country experienced a significant contraction in GDP growth in 2020, and various sectors like manufacturing, services, and tourism have been severely affected. The government has implemented several measures to revive the economy, such as fiscal stimulus packages and reforms to attract foreign investment.
| 2. How has the COVID-19 pandemic affected the Indian economy? | |
Ans. The COVID-19 pandemic has had a significant impact on the Indian economy. The nationwide lockdown imposed to control the spread of the virus resulted in disruptions to businesses, supply chains, and the labor market. Many industries faced a decline in production and revenue, leading to job losses and reduced consumer spending. The economic recovery has been gradual, with sectors like healthcare, e-commerce, and digital services showing resilience.
| 3. What measures has the Indian government taken to revive the economy? | |
Ans. The Indian government has introduced several measures to revive the economy during the COVID-19 pandemic. These include fiscal stimulus packages, liquidity support to businesses, reforms in labor laws, relaxation of foreign direct investment (FDI) norms, and initiatives like "Make in India" to boost domestic manufacturing. Additionally, the government has focused on infrastructure development, agricultural reforms, and promoting digitalization to drive economic growth.
| 4. How is the Indian government attracting foreign investment in the economy? | |
Ans. The Indian government is taking various steps to attract foreign investment in the economy. It has relaxed FDI norms in sectors like defense, insurance, and retail, allowing higher levels of foreign ownership. The introduction of the Goods and Services Tax (GST) has simplified the tax structure, making it more attractive for foreign companies. The government is also actively engaging with global investors through initiatives like "Invest India" and providing incentives for setting up manufacturing units in the country.
| 5. What are the key sectors driving the economic recovery in India? | |
Ans. Several sectors are driving the economic recovery in India. The healthcare sector has witnessed significant growth due to increased demand for medical services and pharmaceutical products. E-commerce and digital services have experienced a surge in demand as people shifted to online shopping and remote work. Agriculture, supported by government reforms, has shown resilience and contributed to economic growth. Additionally, sectors like renewable energy, infrastructure, and technology are expected to play a crucial role in the recovery process.
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