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Economy2015
With reference to Indian economy, consider the following statements:
  1. The rate of growth of Real Gross Domestic Product has
  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?

Explanation

The second statement is correct because the Gross Domestic Product (GDP) at market prices, which reflects the monetary value of all goods and services produced in an economy, has consistently increased due to factors like rising consumption, investments, and government spending. In contrast, the first statement is misleading as the rate of growth of Real GDP, which adjusts for inflation, has exhibited fluctuations and was significantly affected by pressing issues such as demonetization, the implementation of the Goods and Services Tax (GST), and the pandemic, leading to periods of decline rather than a steady increase. Understanding these dynamics is crucial, as GDP growth metrics are vital indicators of economic health and policy effectiveness.

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