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?
[UPSC Civil Services Exam – 2015 Prelims]
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither1 nor 2
Answer: (b)
Explanation:
- The rate of growth of Real Gross Domestic Product experienced a decline from 8-9% to 5-6% over the following years after the recession in 2008, among other factors. Therefore, statement 1 is incorrect.
- India faced significant challenges in the form of a surge in capital inflows, increased global commodity prices leading to inflation, the global financial meltdown, and a decline in international trade. These factors contributed to the decrease in the rate of growth of Real Gross Domestic Product.
