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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?
[2015]
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
With reference to Indian economy, consider the following statements:1....
Due to recession in 2008, the growth rate of the Indian economy had declined for the next few years from 8-9% to 5-6%. Even though the growth rate had declined, it never became negative. So, the GDP at market prices has always increased year on year since last one decade
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Community Answer
With reference to Indian economy, consider the following statements:1....
Explanation:

Real Gross Domestic Product (GDP) Growth:
- The statement that the rate of growth of Real Gross Domestic Product has steadily increased in the last decade is incorrect.
- In reality, the growth rate of Real GDP has been fluctuating over the last decade due to various factors such as global economic conditions, domestic policies, and natural disasters.
- There have been periods of high growth as well as slowdowns in the Indian economy during this period.

Gross Domestic Product at Market Prices:
- The statement that the Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade is correct.
- The GDP at market prices reflects the total value of goods and services produced in an economy at current market prices.
- Despite fluctuations in the growth rate of Real GDP, the overall trend has been an increase in the GDP at market prices over the last decade.
- This growth can be attributed to various factors such as increased consumption, government spending, and investment in infrastructure.
Therefore, the correct answer to the given question is option 'B) 2 only'.
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