(a)[1]
Calculate import expenditure as a percentage of total demand in India for quarter 1 2019.
(b)[4]
The Indian government promised to reduce income tax so that consumers would have greater purchasing power.
- Explain how economists would measure the effect of a cut in income tax on the demand for different goods such as scooters and smartphones. [2]
- With reference to the data, explain whether the effect of the income tax cut is likely to be the same for scooter demand and smartphone demand. [2]
(c)[3]
Using the information, identify one policy that could count as a supply-side measure and explain how it could make Indian businesses more competitive.
(d)[6]
Discuss whether, in the Indian economy, the advantages of cutting interest rates would be greater than the disadvantages.
(e)[6]
Consider whether roads and other types of infrastructure in India would be better supplied by the private sector or by the government.