National Income & Gross Domestic Product (Part

Total Questions: 45

1. As per data released by Government of India in March 2011, the Per Capita Income of Indians rose by 14.5 % in 2009-10. What is the Per Capita Income figure (in nearest hundred ) ? [U.P.P.C.S. (Mains) 2011]

(a) Rs. 40,600
(b) Rs. 42,300
(c) Rs. 46,500
(d) Rs. 47,000

Correct Answer: (c) Rs. 46,500

Solution:According to Economic Survey 2012-13, Per Capita Income at current prices for the year 2009-10 was at Rs. 46249 which was close to Rs. 46500. Thus, option (c) was correct as per the data of the time concerned. As per the Second Advance Estimates of National Income, 2023-24 (released by the NSO on 29 February, 2024), Per Capita Income at current prices is estimated at Rs. 169496 and Rs. 183236, respectively, for 2022- 23 (1st R.E.) and 2023-24 (2nd A.E.). Per Capita Income at constant prices (2011-12) is estimated at Rs. 99404 and Rs. 106134, respectively, for 2022-23 (1st R.E.) and 2023-24 (2nd A.E.).

2. In year 2013-14 in India, Per Capita Net National Income at current prices and factor cost was - [Chhattisgarh P.C.S. (Pre) 2015]

(a) Rs. 73,450
(b) Rs. 72,580
(c) Rs. 74,380
(d) Rs. 71,628
(e) None of these

Correct Answer: (e) None of these

Solution:As per the Economy survey 2022-23, Per Capital Net National Income at current prices and factor cost, in the year 2013-14 in India was at Rs. 79118 (New series estimates).

3. In which year the rate of growth of India's Per Capita Income at constant prices was the highest during the period 1951-52 to 2015-16 ? [B.P.S.C (Pre) 2017, R.A.S./R.T.S. (Pre) 2016]

(a) 2015-16
(b) 2010-11
(c) 2007-08
(d) 2014-15

Solution:As per the question period and 2004-05 series, option (c) was the correct answer. As per Economic Survey 2020-21, in the period from 1951-52 to 2020-21, the maximum growth rate of Per Capita Income (Per Capita NNI) at constant prices (2004-05 series) in India was recorded in the year 2007-08. In that year growth rate of 8.6% was recorded in Per Capita Income of India. After that maximum Per Capita Income growth rates at constant prices (2004-05 series) were obtained in the year 2010-11 (8.3%), 2006-07 (7.6%) and 2005-06 (7.5%). As per Economic Survey 2022-23, the maximum growth rate of Per Capita Income at constant prices (2011-12 series) in last three decades is recorded in the year 2021-22 (7.5% in P.E.) while among the given years it was maximum in the year 2015-16 (6.7%). As per the Second Advance Estimates of Annual National Income 2023-24, at constant and current prices Per Capita Income growth rate in 2022-23 (1st R.E.) was 5.7% and 12.3% respectively, which is at 6.8% and 8.1% in 2023-24 (2nd A.E.) respectively.

4. In the year 2010-11 (at 2004-05 prices), which of the following is the Per Capita Income in India ? [U.P.U.D.A./L.D.A. (Pre) 2013]

(a) Rs. 30,525
(b) Rs. 33,626
(c) Rs. 34,443
(d) Rs. 35,993

Correct Answer: (a) Rs. 30,525

Solution:As per the Quick Estimates of the year 2010-11, Per Capita Income (at 2004-05 prices) in India was at Rs. 35993. However, as per the Economic Survey 2020-21, Per Capita Income in 2010-11 (at 2004-05 prices) was at Rs. 39270, while as per the Economic Survey 2022-23, Per Capita Income in 2010-11 (at 2011-12 prices) was at Rs. 62170.

5. In the year, 1991-92, the Per Capita Annual Income in India was about : [M.P.P.C.S. (Pre) 1994]

(a) 4,500
(b) 5,500
(c) 7,500
(d) 10,500

Correct Answer: (c) 7,500

Solution:As per the Economic Survey 2022-23, Per Capita Annual Income in India in the year 1991-92 was at Rs. 6835 at current prices. Thus the nearest correct answer is option (c).

6. In the gone by decade of 90s the highest rate of growth of GDP was obtained in which of the following year : [U.P.P.C.S. (Pre) 2002, U.P. Lower Sub. (Spl.) (Pre) 2002, 2003]

(a) 1993-94
(b) 1995-96
(c) 1996-97
(d) 1999-2000

Correct Answer: (d) 1999-2000

Solution:As per the Economic Survey 2022-23, the years with highest rate of growth in GDP/GNI (Gross National Income at constant prices ) in the last three decades (1990-2000, 2000-2010 and 2010-2020) are given in the following table :

Decade	Highest Growth Years	GNI Growth Rate (%) (2011-12 Series)
1990-2000	1999-2000 1996-1997	8.8 7.7
2000-2010	2007-08 2006-07	8.0 8.0
2010-2020	2010-11 2016-17 2015-16	8.0 8.3 8.0

Note : As per second Advance Estimates (2nd A.E.) of National Income 2023-24 (released on 29 February, 2024), both the rate of growth in GDP and GNI (at 2011-12 Prices) are at 7.6% in 2023-24.

7. Indian Economy has witnessed highest growth rate in the year : [U.P.P.C.S. (Pre) 2008, U.P.R.O./A.R.O. (Mains) 2013]

(a) 2003-04
(b) 2004-05
(c) 2005-06
(d) 2006-07

Correct Answer: (d) 2006-07

Solution:Among the given options, option (d) is the right answer as per the latest data of 2011-12 series given in the Economic Survey 2022-23.

As per the Economic Survey 2022-23, the years with highest rate of growth in GDP/GNI (Gross National Income at constant prices ) in the last three decades (1990-2000, 2000-2010 and 2010-2020) are given in the following table :

Decade	Highest Growth Years	GNI Growth Rate (%) (2011-12 Series)
1990-2000	1999-2000 1996-1997	8.8 7.7
2000-2010	2007-08 2006-07	8.0 8.0
2010-2020	2010-11 2016-17 2015-16	8.0 8.3 8.0

Note : As per second Advance Estimates (2nd A.E.) of National Income 2023-24 (released on 29 February, 2024), both the rate of growth in GDP and GNI (at 2011-12 Prices) are at 7.6% in 2023-24.

8. In the context of Indian Economy, consider the following statements : [U.P.S.C (Pre) 2011]

1. The growth rate of GDP has steadily increased in the last five years.

2. The growth rate in Per Capita Income has steadily increased in the last five years.

Which of the statements given above is/are correct ?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Correct Answer: (d) Neither 1 nor 2

Solution:During the five years before the question period the growth rates of Gross National Income (GNI) and Per Capita Income (PCI) at base prices of 2010-11 (as per the Economic Survey 2022-23 ) were as follows :

Growth Rates (in percentage )

Year	2006-07	2007-08	2008-09	2009-10	2010-11
GNI	8.0	8.0	2.9	7.9	8.0
PCI	6.3	6.3	0.8	6.1	6.4

In is manifest from the chart that neither the growth rate of GNI nor the growth rate of PCI had constantly increased during the five years before the question period (Which also represents more or less the GDP growth pattern ).

As per the Second Advance Estimates of National Income, 2023-24 and First Revised Estimates of National Income, 2022-23, growth rates of Gross National Income (GNI), Gross Value Added (GVA) at basic prices and Per Capita Income (PCI) in the last five years at constant prices (2011-12) are as follows :

Growth Rates (in percentage )

Year	2019-20	2020-21	2021-22	2022-23	2023-24
Indices		(3rd R.E. )	(2nd R.E.)	(1st R.E.)	(2nd A.E.)
GNI	4.0	-6.2	9.9	6.8	7.6
GVA	3.9	-4.1	9.4	6.7	6.9
PCI	2.5	-8.9	9.3	5.7	6.8

R.E. - Revised Estimates: A.E. - Advanced Estimates

Hence, option (d) is the correct answer from the previous five year data too.

9. With reference to Indian Economy, consider the following statements : [U.P.S.C (Pre) 2015]

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 ?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Correct Answer: (b) 2 only

Solution:The rate of growth of Real Gross Domestic Product had declined due to the recession in 2008 and other reasons for the next few years. Thus, Statement 1 is incorrect. There have been ups and downs in the growth rate of Real GDP in the 2010-2020 decade also.

GDP at market prices has always increased year on year since last decade before the question period. Hence, Statement 2 is correct for the question period. It is also true for the 2010-2020 decade but in year 2020-21 the GDP growth rate at market prices also became negative due to COVID-19 pan- demic. Thus, for the present scenario, option (d) is the right answer.

10. According to Economic Survey 2020-21, real growth rate financial year 2022 is assumed as based on IMF (International Monetary Fund ) estimates : [M.P.P.C.S. (Pre) 2021]

(a) 7.7 Percent
(b) 8.7 Percent
(c) 9.5 Percent
(d) 11.5 Percent

Correct Answer: (d) 11.5 Percent

Solution:According to Economic Survey 2020-21, IMF estimate of real GDP growth was at 11.5 percent in 2021-22 and 6.8 per- cent in 2022-23 for India. IMF in its World Economic Out- look (WEO), April, 2024, has estimated real GDP growth for India in financial year 2023 at 7.8%, while for financial year 2024 and 2025, it is projected at 6.8% and 6.5%, respectively.

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National Income & Gross Domestic Product (Part – II)