The RBI Grade B Phase 2 Descriptive Economic & Social Issues (ESI) paper evaluates a candidate’s ability to analyze and articulate economic and social issues using data, facts, and government reports. Since descriptive answers require analytical depth, citing relevant statistics, economic surveys, RBI reports, and government schemes significantly enhances answer quality and boosts scores.
In this guide, we will discuss:
- Why data and reports are crucial in Descriptive ESI answers
- Key sources of economic and social data
- How to integrate data effectively into answers
- Common mistakes to avoid
- Practice questions and sample answers
1. Why Are Data and Reports Important in Descriptive ESI Answers?
Using authentic data and official reports in descriptive answers helps in multiple ways:
✅ Adds Credibility: Answers backed by facts and figures appear well-researched and reliable.
✅ Shows Awareness: Demonstrates that the candidate follows government policies and economic trends.
✅ Enhances Analysis: Allows for comparisons, trend analysis, and policy evaluations.
✅ Boosts Marks: Well-structured, data-driven answers stand out and increase the chances of scoring higher.
For instance, a generic statement like:
“India’s unemployment rate is high.”
Can be replaced by a data-backed statement:
“As per the Periodic Labour Force Survey (PLFS) 2024, India’s unemployment rate among youth (15-29 years) stood at 12.4%, highlighting the urgent need for employment generation policies.”
2. Key Sources of Data & Reports for RBI Grade B Descriptive ESI
Candidates must refer to authentic and updated sources while preparing for the descriptive paper. The following are the most relevant sources:
3. How to Integrate Data into Descriptive Answers?
Simply adding numbers won’t improve scores—data must be integrated strategically.
🔹 A) Using Data in Introductions
Start your answer with a fact or statistic to set the context.
Example (Inflation in India):
❌ “Inflation is a major challenge for the Indian economy.”
✅ “According to the RBI’s Monetary Policy Report (2024), India’s CPI inflation stood at 5.4% in December 2024, driven by food and fuel prices. Managing inflation remains a top priority for economic stability.”
🔹 B) Supporting Arguments with Data in the Main Body
Each point in your answer should be supported by data from reports.
Example (Financial Inclusion in India)
❌ “Financial inclusion has improved in recent years due to digital banking.”
✅ “India’s financial inclusion index, as per RBI’s Financial Stability Report 2024, rose to 56.4, reflecting the success of schemes like PM Jan Dhan Yojana, which has opened over 47 crore bank accounts since its inception.”
🔹 C) Strengthening Analysis with Trend Comparisons
Use historical comparisons to highlight economic trends.
Example (GDP Growth Rate Analysis)
“India’s GDP growth rebounded from -7.3% in FY21 (pandemic year) to 6.5% in FY24, as per the Economic Survey 2024, showcasing economic recovery driven by strong manufacturing and digital economy growth.”
🔹 D) Concluding with Data-Backed Insights
Summarize your answer using forward-looking projections or policy implications.
Example (Employment Generation Policies):
“While India’s unemployment rate declined to 6.8% in 2024 (PLFS), experts suggest that further investment in MSMEs and skill development programs can help reduce it to below 5% by 2030.”
4. Common Mistakes to Avoid
❌ Using Outdated Data – Always quote the latest Economic Survey, Budget, or RBI report.
❌ Dumping Numbers Without Explanation – Explain why the data matters.
❌ Exaggerating Figures – Use only official government sources for credibility.
❌ Ignoring RBI’s Role – Always link economic issues to RBI’s monetary and banking policies.
❌ Overusing Data – Use 3-5 key statistics per answer for maximum impact.
5. Sample Answer Using Data & Reports
Q: “Discuss the impact of RBI’s Monetary Policy on inflation control in India.” (600 words, 15 Marks)
🔹 Introduction (80 Words)
“Inflation control is a crucial objective of monetary policy. According to the RBI’s Monetary Policy Report (2024), India’s retail inflation stood at 5.4% in December 2024, primarily driven by volatile food and fuel prices. The Monetary Policy Committee (MPC) follows an inflation-targeting framework, maintaining inflation within 4% ± 2% as per the RBI Act, 1934 (amended in 2016).”
🔹 Main Body (450 Words)
1. RBI’s Monetary Policy Framework
- Inflation Targeting Policy: Since 2016, RBI’s inflation target is 4% (±2%).
- Key Instruments:
- Repo Rate Adjustments: Increased to 6.5% in FY24 to curb inflation.
- Open Market Operations (OMO): Liquidity control.
- CRR & SLR Adjustments: Influencing money supply.
2. Effectiveness of Inflation Control Measures
- CPI Inflation Trend:
- 7.4% in 2022 → 5.4% in 2024 (RBI Report).
- Success in Stabilizing Prices – Monetary tightening reduced demand-driven inflation.
- Challenges: Food price volatility, global oil price fluctuations.
3. Way Forward
- Strengthening monetary-fiscal coordination.
- Enhancing supply-side reforms in agriculture & infrastructure.
🔹 Conclusion (100 Words)
“While RBI’s monetary policy has been effective in maintaining inflation near the target range, external factors such as global crude oil prices and agriculture supply chains continue to pose challenges. Moving forward, a balanced approach combining fiscal and monetary interventions will be necessary to ensure price stability while supporting economic growth.”
6. Practice Questions
- “Analyze the role of Economic Survey 2024 in shaping India’s fiscal policies.”
- “How does RBI’s Financial Stability Report help in banking sector reforms?”
- “Discuss the impact of NITI Aayog’s policies on sustainable development.”
- “Evaluate the findings of the Periodic Labour Force Survey (PLFS) 2024 on employment trends in India.”
Conclusion
Using data and reports effectively is the key to scoring high in RBI Grade B Descriptive ESI. Candidates must practice writing structured answers, incorporate relevant statistics, and ensure they use the latest reports to enhance answer quality.
By following this structured approach, aspirants can master data-driven answer writing and improve their descriptive writing skills significantly.
🚀 Now, start practicing with real questions and integrate relevant data in every answer! 🚀