Discuss the multidimensional impact of inflation on the Indian economy.

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Q) “Discuss the multidimensional impact of inflation on the Indian economy. (15 marks, 250 words)

भारतीय अर्थव्यवस्था पर मुद्रास्फीति के बहुआयामी प्रभाव की विवेचना कीजिए।“

Demand of the Question– This question demands a thorough understanding of the concept of inflation and its impact on various sectors, and strata of society.

Directive Word- Discuss- This keyword demands mentioning the impact along with explanations.

Structure of the Answer

Intro– Give a formal definition of inflation, and data of the same from the official source.

Body– Categorize the impacts based on user and market, sectors of economy, strata of societies and for the Government of India. Give real world examples of the effect of the same. In a small section mention about what is the optimal limit, who controls it, and how it is controlled within the limits.

Conclusion-Mention the importance of optimum level of inflation and its impact on society.

Part of Syllabus– GS Paper -3- Indian Economy