Question

With reference to the Indian economy, consider the following statements :

1. The Gross Domestic Product (GDP) has increased by four times in the last 10 years.

2. The percentage share of the Public Sector in GDP has declined in the last 10 years.

Which of the statements, given above is/are correct?
1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither I nor 2

Answer 1

Correct Answer - Option 2 : 2 only

The correct answer is 2 only.

• The economic scenario in India has been pretty stable over the last 5 years.
• Despite the economic downturn two years back the Indian economy has managed to remain stable.
• The India GDP recorded for the period December 2010 stood at 8.20%. Hence, statement 1 is Not correct.
• However, according to the Centre for Monitoring Indian Economy (CMIE) India will record a GDP of 9.2% in the year 2011.
• India's GDP growth 2010 - 2011 has not been phenomenal but is certainly encouraging.
• The turnover of central public sector enterprises (CPSEs) for the last three years, 2010-11, 2011-12 and 2012-13 was Rs 14,98,018 crore, Rs 18,22,049 crore and Rs 19,45,777 crore respectively.
• The contribution of gross value addition of CPSEs in the gross domestic product (GDP) is 6.18%, 6.14%, and 5.85% respectively.
• A percentage-wise increase in GDP at current market prices also witnessed a downward trajectory. It was reported at 12.25% in 2012-13, down from 15.74% in 2011-12 and 20.17%  in 2010-11. Hence, statement 2 is correct.