National Income & Gross Domestic Product (Part

Total Questions: 45

11. The annual growth rate of the Indian Economy at 1999-2000 prices during 2005-2006 has been estimated between : [U.P.P.C.S. (Pre) 2001, 2003, 2006, U.P.P.C.S. (Mains) 2014, U.P.P.C.S. (R.I.) 2014, U.P.U.D.A./L.D.A (Pre) 2002]

(a) 8 to 9 per cent
(b) 7 to 8 per cent
(c) 6 to 7 per cent
(d) 5 to 6 per cent

Correct Answer: (a) 8 to 9 per cent

Solution:Central Statistical Organisation (CSO) on 31 May, 2006 presented the Revised Estimates for the financial year 2005- 06. It showed the growth rate of Gross Domestic Product at 1999-2000 prices to be 8.4%. Thus, as per the question period option (a) was the correct answer. The growth rate for 2005- 06 was further revised to 9.5% in 2004-05 series. As per the Second Advance Estimates of National Income 2023-24 (released by the NSO on 29 February, 2024), the growth in Real GDP or GDP at constant (2011-12) prices during 2023-24 is estimated at 7.6% (2nd A.E.) as compared to 7.0% (1st R.E.) in 2022-23. During 2023-24 at constant (2011-12) prices, the growth rate of GVA at basic prices is estimated at 6.9% (2nd A.E.) as compared to 6.6% (1st R.E.) in 2022-23.

12. The expected GDP growth rate for 1998-99 is : [U.P.P.C.S. (Pre) 1999, 1997,2000,2005, U.P. Lower Sub. (Spl.) (Pre) 2002, 2003, U.P.P.C.S. (Mains) 2003, 2005]

(a) 5.5 %
(b) 5.6 %
(c) 5.7 %
(d) 6.5 %

Correct Answer: (d) 6.5 %

Solution:The growth rate of Gross Domestic Product during the year 1998-99 was at 6.5% (base year 1993-94), which later on, as per the revised data (base year 2004-05), became 6.7%. In the year 2023-24 (2nd A.E.) growth in Gross Domestic Product is recorded to be 7.6% at constant prices (base year 2011-12) and 9.1% at current prices while in 2022-23 (1ª R.E.), growth in GDP was 7.0% at constant prices and 14.2% at current prices.

13. In India Gross Domestic Product growth rate increased from 4.5 percent in 2012-13 to 4.7 percent in 2013-14, because of - [chhattisgarh P.C.S. (Pre) 2014]

(a) High growth rate in service sector
(b) High growth rate in manufacturing sector
(c) High growth rate in agriculture & allied sector
(d) All of the above

Correct Answer: (c) High growth rate in agriculture & allied sector

Solution:According to Economic Survey 2013-14, Gross Domestic Product of India increased by 4.7% in the year 2013-14 as compared to 4.5% in the year 2012-13. The most important reason for this was the high growth rate in agriculture and allied sector. In agriculture sector 4.7% growth rate had been recorded due to favourable monsoon which was much higher with respect to last year's 1.4%. As per the Second Advance Estimates of National Income 2023-24 at constant (2011-12) prices, the growth rate of agriculture and allied sector in 2023-24 (2nd A.E.) is at 0.7% which was at 4.7% in 2022-23 (1 R.E.). It is notable that in COVID-19 period, agriculture sec- tor is the only sector which has shown the positive growth.

14. Which of the following sub-sectors has experienced negative growth rate in 2009-10 over 2008-09 ? [U.P.R.O./A.R.O. (Mains) 2013]

(a) Agriculture and Allied Sectors
(b) Construction
(c) Mining and Quarrying
(d) Electricity, Gas and Water Supply

Correct Answer: (a) Agriculture and Allied Sectors

Solution:Although according to Economic Survey 2009-10, option (a) can be held as the correct answer but as per the further revised data for the year 2009-10, there was positive growth rate for every sub-sector in 2009-10 over 2008-09. According to the Second Advance Estimates of National Income 2023-24

Industry	2022-23 (1st R.E)	2023-24 (2nd A.E)
Agriculture, Forestry and Fishing	4.7	0.7
Mining and Quarrying	1.9	8.1
Manufacturing	-2.2
Electricity, Gas Waters/s Supply etc.	9.4	10.7
Construction	12.0	6.5
Trade, Hotels, Transport, Communication etc.	9.1	10.7
Financial , Real Estate & other services	9.1	8.2
Public Adm, Defence & Professional Services	8.9	7.76
GVA at Basic Prices	6.7	6.9

15. As per recent estimates of the Reserve Bank of India growth rate in 2002-2003 will be - [U.P.P.C.S. (Mains) 2002]

(a) 5-5.5%
(b) 5.5-6.0%
(c) 6.0-6.5%
(d) 6.5-7.0%

Correct Answer: (a) 5-5.5%

Solution:According to the contemporaneous estimates of Reserve Bank of India, growth rate for the year 2002-03 was expected to be approximately 5-5.5%. As per the Second Advance Estimates of National Income 2023-24 (released on 29 February, 2024), the growth in GDP at constant (2011-12) prices during 2023-24 (2nd A.E.) is estimated at 7.6% as compared to 7.0% in 2022-23 (15ª R.E.).

The Reserve Bank of India plays a vital role in maintaining economic stability. Some key impacts include:

Inflation Control: RBI adjusts interest rates to keep inflation in check.
Economic Growth: It supports industries, startups, and small businesses through lending policies.
Banking Sector Stability: Ensures safe banking operations and deposit protection.
Financial Reforms: Implement policies to modernize banking and promote digital transactions.

16. According to Asian Development Report 2004, growth rate of India in 2005 will be- [U.P.P.C.S. (Mains) 2004]

(a) 7.5%
(b) 6.9%
(c) 5.5%
(d) 4.9%

Correct Answer: (b) 6.9%

Solution:'Asian Development Report, 2004' was released on 28 April, 2004. According to this report, growth rate of India for the year 2005 was estimated at 6.9%. Thus option (b) is correct. In Asian Development Outlook, April 2024, the GDP growth rate of India is estimated at 7.0% for the year 2022, 7.6% for the year 2023 and 7.0% for the year 2024.

Despite uncertain external prospects, Asia is projected to maintain resilient growth in the coming years. Factors such as the conclusion of interest rate hiking cycles in most economies and a sustained recovery in goods exports, particularly driven by improving semiconductor demand, contribute to the region's broadly positive outlook.
Asia's GDP growth forecast for 2024 stands at 4.9%, with a similar projection maintained for 2025. This steady growth trajectory reflects the region's ability to navigate external challenges and sustain economic momentum. Inflation in Asia is expected to moderate, with a forecast of 3.2% for 2024 and a further decrease to 3.0% in 2025. This trend indicates a relatively stable pricing environment, which can support consumer confidence and spending.

17. Assertion (A): The Indian Economy has experienced recession in the fiscal year 1997-98. [U.P.P.C.S. (Pre) 1998]

Reason (R): There has been a fall in the public investment in the recent past.

Select the correct answer from the codes given below :

Code :

(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true but (R) is not the correct explanation of (A)
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true.

Correct Answer: (b) Both (A) and (R) are true but (R) is not the correct explanation of (A)

Solution:The growth rate of Indian Economy in the year 1997-98 was at 4.3% which was very less than the growth rate (8.0%) obtained in the year 1996-97. Again in the year 1997-98 the investment of public sector was 6.6% of GDP at market prices, which was less than the 7.5% of the year 1996-97 and 7.7% of the year 1995-96. Therefore assertion and reason both are correct but reason is not the correct explanation of assertion.

18. Assertion (A): Indian economy has moved to a higher average GDP growth rate in the last 15 years. [U.P.P.C.S. (Pre) 1997]

Reason (R): The saving ratio has consistently increased in this period.

(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true but (R) is not the correct explanation of (A)
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true.

Correct Answer: (a) Both (A) and (R) are true and (R) is the correct explanation of (A)

Solution:The average growth rate of Gross National Product in Sixth Five Year Plan (1980-85) was 5.5% annually, in Seventh Five Year Plan (1985-90) was 5.8% annually and in Eighth Five Year Plan (1992-97) was 6.8% annually which was comparatively more than the growth rate of Gross National Product obtained earlier. Similarly the saving rate in the year 1995-96 was increased to 25.1% of GDP as against the 18.9% of GDP in the year 1980-81. Therefore assertion and reason both are correct and reason is the correct explanation of assertion.

19. Arrange the following States in descending order of Per Capita Income for the year 1998-99 and select the correct answer from the codes given below: [U.P.S.C (Pre) 2001]

A. Maharastra

B. Gujarat

C. Uttar Pradesh

D. Punjab

Code :

(a) DBAC
(b) DABC
(c) BDAC
(d) ADBC

Correct Answer: (b) DABC

Solution:Option (b) was the right answer for the question period. As per the RBI's Handbook of Statistics on the Indian Economy, 2022-23, Per Capita Net State Domestic Product at current Prices of the above States is as follows :

State	Per capita NSDP (in Rs.)
	2020-21	2021-22
Punjab	150620	168705
Maharashtra	183704	215233
Gujarat	207324	241930
Uttar Pradesh	61434	73048

20. Consider the following States : [U.P.S.C (Pre) 2001]

1. Gujarat

2. Karnataka

3. Maharashtra

4. Tamil Nadu

The descending order of these States with reference to their Per Capita Net State Domestic Product is :

(a) 1, 3, 4, 2
(b) 3, 1, 2, 4
(c) 1, 3, 2, 4
(d) 3, 1, 4, 2

Correct Answer: (d) 3, 1, 4, 2

Solution:Option (d) was the right answer for the question period. As per the RBI's Handbook of Statistics on the Indian Economy .

Southern states:
Before 1991, southern states did not show expectational performance. However, since the economic liberalisation of 1991, the southern states have emerged as the leading performers. In 2023-24, Karnataka, Andhra Pradesh, Telangana, Kerala and Tamil Nadu together accounted for approximately 30% of India's GDP. The per capita income of all southern states became higher than the national average after 1991. For instance, The relative per capita income in Telangana is now 193.6% of the national average. While Karnataka, Tamil Nadu, and Kerala have per capita incomes 181, 171, and 152.5% of the national average, respectively.
Western states:
Maharashtra has maintained the highest share of India's GDP for almost all of the period. Gujarat's share remained at broadly the same levels until 2000-01, before beginning to increase rapidly from 6.4% in 2000-01 to 8.1% in 2022-23. Both Gujarat and Maharashtra have had per capita incomes exceeding the national average since the 1960s. By 2023-24, Gujarat's per capita income has risen to 160.7% of national average, as compared to 150% for Maharashtra. In 2022-23, the per capita income of Goa was nearly three times the national average. With this, it is second in terms of per capita income after Sikkim.
Northern states:
Among the northern states, Delhi and Haryana have performed notably well, while Punjab's economy has deteriorated after 1991. Haryana's share of India's GDP now exceeds that of Punjab, and its relative per capita income has reached 176.8%, compared to Punjab's 106.7% in 2023-24.

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National Income & Gross Domestic Product (Part – II)