Which of the following factors is/are responsible for recent rapid slowdown of Indian economy despite recovering from . the global financial crisis ? 1. The boost to demand given by monetary and fiscal stimulus following the crisis was large 2. Starting i

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Q: 68 (CDS-II/2013)
Which of the following factors is/are responsible for recent rapid slowdown of Indian economy despite recovering from . the global financial crisis ?
1. The boost to demand given by monetary and fiscal stimulus following the crisis was large
2. Starting in 2011-12, corporate and infrastructure investment started slowing both as a result of investment bottlenecks as well as the tighter monetary policy

Select the correct answer using the code given below :

question_subject: 

Economics

question_exam: 

CDS-II

stats: 

0,47,68,13,46,47,9

keywords: 

{'indian economy': [0, 3, 3, 5], 'recent rapid slowdown': [0, 0, 0, 1], 'global financial crisis': [0, 0, 0, 1], 'factors': [0, 0, 1, 0], 'investment bottlenecks': [0, 0, 0, 1], 'tighter monetary policy': [0, 0, 0, 1], 'crisis': [0, 1, 0, 1], 'fiscal stimulus': [0, 0, 1, 1], 'infrastructure investment': [0, 0, 0, 1]}

Option 1 states that the boost to demand given by monetary and fiscal stimulus following the global financial crisis was large. This means that the government took measures to stimulate the economy by increasing spending and reducing interest rates. However, this alone was not enough to prevent the recent rapid slowdown of the Indian economy.

Option 2 states that starting in 2011-12, corporate and infrastructure investment started slowing down. This was due to investment bottlenecks and a tighter monetary policy. Investment bottlenecks refer to obstacles or constraints that hinder investment activities, such as delays in obtaining permits or clearances. A tighter monetary policy is when the central bank, in this case the Reserve Bank of India, increases interest rates to control inflation.

The correct answer is option 3, which means that both factors mentioned in option 1 and 2 are responsible for the recent rapid slowdown of the Indian economy. The government`s measures to boost demand through monetary and fiscal stimulus were not enough to counteract the slowing down of corporate and infrastructure investment. This highlights the importance of addressing investment bottlenecks and maintaining an appropriate monetary policy to sustain economic growth.