Bhushan's response identifies potential causes of lag in real-time data processing, such as data failures, API or database latency, and the volume of incoming data. He suggests increasing the number of executors to handle larger data volumes. However, the response could be more structured and focused on a step-by-step approach to diagnosing and addressing the lag. Bhushan could improve by clearly prioritizing the steps to take and explaining how each step helps to resolve the issue, as seen in the benchmark response.