Q5 · UPSC current affairs · 4 September 2026 · News · Double Deflation Manufacturing GVA Deflator Methodology

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Consider the following statements regarding the manufacturing GVA deflator methodology:1.The methodology was clarified by the Ministry of Statistics and Programme Implementation (MoSPI).2.Double deflation utilizes a single output price index to deflate both gross output and intermediate inputs simultaneously.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

Correct answer: (a) 1 only

Explanation

Statement 1 is correct as MoSPI issued technical clarifications regarding the manufacturing GVA deflator methodology. Statement 2 is incorrect because double deflation specifically deflates intermediate inputs and gross outputs using *distinct* price indices (using a single index is termed single deflation).

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