With reference to the 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?
Explanation
The question refers to the economic trends in India during the decade preceding 2015.
Statement 1 is incorrect: The 'rate of growth' of real GDP refers to the percentage change in GDP from one year to the next. In India, this rate has not 'steadily increased'; instead, it has fluctuated. For example, growth was high in the mid-2000s, slowed down during the 2008 global financial crisis, recovered briefly, and then slowed again around 2012-13. A steady increase would mean the percentage growth rate rose every single year, which did not happen.
Statement 2 is correct: GDP at market prices (in absolute rupee terms) has steadily increased over the last decade. Even though the *rate* of growth fluctuated, as long as the growth rate remained positive (which it did), the total size of the economy (the absolute GDP value) continued to expand year after year.
Therefore, only statement 2 is correct.