Prelims 2015 · Economy · Question 81
With reference to Indian economy, consider the following statements:
- The rate of growth of Real Gross Domestic Product has steadily increased in the last decade.
- The Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade.
Which of the statements given above is/are correct?
Answer
2 only
Statement 1: Incorrect. India’s real GDP growth rate did not steadily increase over the last decade; it fluctuated significantly, with periods of slowdown and contraction.
Statement 2: Correct. GDP at market prices in current rupees (nominal GDP) generally increased over the decade, reflecting inflation plus real output growth.
Therefore, only Statement 2 is correct.