gs1medium
With reference to the Indian economy, consider the following statements:
- 1.The Gross Domestic Product (GDP) has increased by four times in the last 10 years.
- 2.The percentage share of the Public Sector in GDP has declined in the last 10 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
▶ Answer & Explanation
Correct answer: B. 2 only
The statement regarding the increase in GDP by four times in the last 10 years (relative to 2010) is likely an exaggeration or not accurate in nominal terms, although real GDP growth would have been significant. However, the liberalization and economic reforms since the early 1990s, and continuing into the 2000s, led to a significant privatization and disinvestment drive, reducing the relative share of public sector enterprises in the overall economy and GDP.
Source: UPSC gs1 2010