Civil Services Prep

Prelims 2015 · Economy · Question 81

With reference to Indian economy, consider the following statements:<br/>1. The rate of growth of Real Gross Domestic Product has steadily increased in the last decade.<br/>2. The Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade.<br/><br/>Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

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.

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