Question

Examine the role of government policies in promoting economic growth in India.

Answer 1

Government policies play an important role in promoting economic growth in India.

1. Infrastructure Development: The government invests in sectors like roads, railways, power, and communication to support industrial expansion and economic activities.
2. Industrial Policies: Industries are encouraged through subsidies, tax incentives, and policies that improve the ease of doing business.
3. Agricultural Support: The government provides minimum support prices (MSP), irrigation facilities, fertilizers and modern technology to increase agricultural productivity.
4. Employment Generation: Schemes such as MGNREGA are implemented to create employment opportunities, reduce unemployment, and tackle poverty.
5. Liberalisation and Reforms: Economic reforms introduced since 1991 promoted privatisation, globalisation and foreign investment, contributing to economic growth.