In the context of Indian economy consider the following statements : 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?

QUESTION

Medium

Economy

Prelims 2011

In the context of Indian economy consider the following statements :

The growth rate of GDP has steadily increased in the last five years.
The growth rate in per capita income has steadily increased in the last five years.

Which of the statements given above is/are correct?

Select an option to attempt

Explanation

Statement 1 is incorrect: The growth rate of GDP in India has not increased steadily over the last five years. It has fluctuated due to factors such as the COVID-19 pandemic, global slowdown, and domestic demand variations — for instance, a sharp contraction in 2020–21 followed by recovery and moderation later.

Statement 2 is incorrect: The growth rate of per capita income has also not increased steadily. It followed a similar pattern — declining during the pandemic and recovering afterward — hence, no consistent upward trend.

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