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Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
6. Critically analyse the role bank mergers play in propelling the economic growth of the country. (250 words)
Difficulty level: Tough
Reference: Insights on India
Why the question:
The question is part of the static syllabus of General studies paper – 3 and mentioned as part of Mission-2022 Secure timetable.
Key Demand of the question:
To write about the role of bank mergers in economic growth.
Directive word:
Critically analyse – When asked to analyse, you must examine methodically the structure or nature of the topic by separating it into component parts and present them in a summary. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a balanced judgment on the topic.
Structure of the answer:
Introduction:
Begin by giving the context of bank mergers in India.
Body:
Firstly, explain the rationale behind bank mergers.
Next, write about the how bank mergers will improve economic growth – more credit flow, consolidated holding, strong financial health etc.
Next, write about the limitation which does not leading to banking mergers translating into economic growth – overleveraged banks, lack of coordination between newly merged banks etc.
Conclusion:
Conclude with a balanced opinion forward.
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