Explanation
- A
1 only
Statement 1 is false: real GDP growth in India did not rise steadily through the decade before 2015; it fluctuated, including a slowdown after the global financial crisis. ‘1 only’ is therefore not the key.
- B
2 only
Statement 2 is correct: GDP at market prices in rupees (nominal GDP) rose year after year in that decade even when real growth dipped, because of positive inflation and a growing base. Statement 1 is false. Hence 2 only is the official key.
- C
Both 1 and 2
Both would require a steadily rising real growth rate, which did not occur. This option is not the key.
- D
Neither 1 nor 2
Neither would deny the steady rise of rupee GDP at market prices. This option is therefore wrong.
Summary. Official key is (b) 2 only. Nominal GDP in rupees trended up through the 2000s–early 2010s. Real growth rates did not increase steadily; they moved with cycles and shocks. ‘Steadily’ is the word that kills statement 1. Only the market-price rupee series fits.
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2017 · Q94 · General Studies · 2 marks
Consider the following statements: 1. Tax revenue as a percent of GDP of India has steadily increased in the last decade. 2. Fiscal deficit as a percent of GDP of India has steadily increased in the last decade. Which of the statements given above is/are correct? -
2020 · Q58 · General Studies · 2 marks
With reference to the Indian economy after the 1991 economic liberalization, consider the following statements: 1. Worker productivity (rs. per worker at 2004-05 prices) increased in urban areas while it decreased in rural areas. 2. The percentage share of rural areas in the workforce steadily increased. 3. In rural areas, the growth in non-farm economy increased. 4. The growth rate in rural employment decreased Which of the statements given above is/are correct?