Question

Study the given image carefully: Identify the situation depicted in the image and suggest the impact of the indicated situation on the Indian economy. 

Hint:

Economic issues like inflation, unemployment, and environmental challenges impact growth. Policies must address these for long-term stability.

Answer 1

Identification of the Situation:
- The image likely depicts situation of employment in the formal sector. Possible Economic Impacts:
1. In the formal sector, workers can form trade unions and are entitled to fair wages and other social security measures. Whereas, workers in the informal sector do not get regular income.
2. Also, they do not have any protection or regulation from the government. Many a time, workers may be dismissed without any compensation.
3.Hence, formal sector employees are generally in a better position as compared to informal sector employees. Therefore, it is essential to generate employment in the formal sector rather than the informal sector. Conclusion: The depicted situation in the image plays a critical role in shaping India's economic stability. Government interventions such as policy reforms, financial support, and sustainable development measures are necessary to mitigate the negative effects.