National Income & Gross Domestic Product (Part

Total Questions: 45

41. Saving ratio in India at present (2006-07) stands at : [U.P.P.C.S. (Pre) 2008]

(a) between 20 to 25 percent of GDP
(b) between 25 to 30 percent of GDP
(c) between 30 to 32 percent of GDP
(d) Above 32 percent of GDP

Correct Answer: (d) Above 32 percent of GDP

Solution:According to the Economic Survey 2022-23, gross domestic savings was 34.9% of the GDP at current market prices in the year 2006-07. GDS represents the portion of a country's GDP that is saved rather than consumed. It's calculated by subtracting total consumption from the GDP. India's GDS rate rose to 29.3% in 2023, indicating an upward trend from 2022. India's GDS rate is higher than the global average and also surpasses that of countries like the US and Japan.
While overall savings may be stable, household net savings have been declining, with a sharp drop in household financial savings and a rise in financial liabilities. Shifting consumption patterns, evolving investment behaviors, and increased reliance on physical assets are contributing to the decline in household savings. Gross domestic savings are a crucial factor in a country's economic growth, as they provide funds for investment and development.

42. Which among the following sectors sectors contribute the most in savings in India ? [U.P.U.D.A./ L.D.A (Pre) 2001, U.P.P.C.S. (Mains) 2004]

(a) Banking and financial sector
(b) Export sector
(c) Household sector
(d) Private sector

Correct Answer: (c) Household sector

Solution:Household sector contributes the most in savings in India. As per Economic Survey 2022-23, the gross domestic savings as percent of GDP at current market prices in the financial year 2001-02 was at 26.0% in which the household sector savings was at 23.6% of the GDP, which is comparatively much more than the share of all other sectors. As per the First Revised Estimates of National Income, 2022-23, share of Non-financial corporations, Financial corporations, General government and Household sector in Gross Savings during 2022-23 stands at 37.3%, 9.3%, (-) 7.5% and 60.9% respectively.

43. In the context of share in saving in India in the last four years, which one of the following statements is correct ? [U.P.P.C.S. (Spl.) (Mains) 2004]

(a) Household saving in the form of financial assets has increased
(b) Share of public sector in saving has increased
(c) Share of corporate sector in saving has increased
(d) Household saving in the form of financial assets has declined

Correct Answer: (c) Share of corporate sector in saving has increased

Solution:In the context of the time period in which the question was asked, the share of private corporate sector in savings in the previous four years had increased (from 3.4% in 2001-02 to 8.7% in 2004-05 and 10.2% in 2005-06). At present, in the last many years the share of household sector, private corporate sector and public sector in gross domestic savings had a tendency of slight fluctuations, but more or less their shares remains in a set pattern.

44. Which has the highest share in the household saving of India ? [U.P.P.C.S. (Mains) 2009]

(a) Deposits
(b) Currency
(c) Physical assets
(d) Shares and debentures

Correct Answer: (c) Physical assets

Solution:In the question period and also at present (in 2020-21), among the given options physical assets has the highest share in the household savings in India. As per the RBI's 'Handbook of Statistics on the Indian Economy 2022-23', household savings in physical assets outscored savings in deposits, currency or shares and debentures in 2021-22. GDS represents the portion of a country's GDP that is saved rather than consumed. It's calculated by subtracting total consumption from the GDP. India's GDS rate rose to 29.3% in 2023, indicating an upward trend from 2022. India's GDS rate is higher than the global average and also surpasses that of countries like the US and Japan.
While overall savings may be stable, household net savings have been declining, with a sharp drop in household financial savings and a rise in financial liabilities. Shifting consumption patterns, evolving investment behaviors, and increased reliance on physical assets are contributing to the decline in household savings. Gross domestic savings are a crucial factor in a country's economic growth, as they provide funds for investment and development.

45. In India saving arise from the following four main sector : [U.P. Lower Sub. (Spl.) (Pre) 1998]

1. Household sector

2. private corporate sector

3. Public corporations and other public enterprises

4. Government

Find the correct descending order of contribution of the above sector from the codes given below :

Code :

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

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

Solution:In the question period as well as in 2021-22 and 2022-23 (as per the First Revised Estimates of National Income, 2022-23), the correct descending order of the sectors mentioned in the question for their share in gross domestic savings in India is as follows: household sector, private corporate sector, public corporations/Public enterprises and the government.

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National Income & Gross Domestic Product (Part – II)

41. Saving ratio in India at present (2006-07) stands at : [U.P.P.C.S. (Pre) 2008]

42. Which among the following sectors sectors contribute the most in savings in India ? [U.P.U.D.A./ L.D.A (Pre) 2001, U.P.P.C.S. (Mains) 2004]

43. In the context of share in saving in India in the last four years, which one of the following statements is correct ? [U.P.P.C.S. (Spl.) (Mains) 2004]

44. Which has the highest share in the household saving of India ? [U.P.P.C.S. (Mains) 2009]

45. In India saving arise from the following four main sector : [U.P. Lower Sub. (Spl.) (Pre) 1998]

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