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?
Explanation
Statement 1 is incorrect: According to World Bank data, India’s nominal GDP grew significantly between 2000 and 2010. In 2000, India’s nominal GDP was around $468.4 billion, and by 2010, it had crossed $1.7 trillion, reflecting an increase of approximately 2.5 to 3 times. While this reflects robust and steady economic expansion, it falls short of the fourfold increase claimed in the statement. Over the last decade from 2014 to 2024, India’s Gross Domestic Product (GDP) witnessed substantial growth, rising from around $2 trillion in 2014 to approximately $3.7 trillion in 2023, reflecting an increase of $1.7 trillion during this period.
Statement 2 is correct: In the early 1990s, the public sector contributed significantly to India’s GDP, accounting for around 25-30% of the total GDP. By 2010, following economic liberalization and reforms that encouraged private sector growth, the public sector’s share had declined to around 20-22%. Between 2014 and 2024, the public sector’s share in India’s GDP declined from around 20-22% to approximately 15-17% (RBI, Economic Survey). This reduction is driven by aggressive disinvestment, privatization of PSUs like Air India, and a policy shift favoring private sector growth in non-strategic sectors.