With reference to Indian economy, consider the following statements: 1. The rate of growth of Real Gross Domestic Product has steadily increased in the last decade. 2. 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?

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YESPYQ · Accepted Answer

Correct answer: 2 only. Statement 1 is incorrect : The rate of growth of Real Gross Domestic Product (GDP) in India has not steadily in- creased over the last decade (2005-2015). Instead, it has experienced fluctuations due to various factors such as global economic conditions, domestic policy changes, and structural reforms. For example: India experienced high GDP growth rates during the mid-2000s (around 9% in 2007-2008). The growth rate declined significantly during the global financial crisis of 2008-2009. Post-2010, growth rates recovered but re- mained volatile, with a slowdown in recent years due to factors like demonetization (2016) and the introduction of the Goods and Services Tax (GST) in 2017. Statement 2 is correct : Gross domestic product at market prices is the sum of added values of all activities which produce goods and services, plus taxes and minus subsidies on products. When measured in nominal terms (i.e., at current market prices without adjusting for inflation), India’s GDP in rupees has shown a consistent upward trend over the past decade. This steady increase

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