1. The growth rate of GDP has steadily increased in the last five years.
2. The growth rate in per capita income has steadily increased in the last five years.
Which of the statements given above is/are correct?
Explanation
NOTE: This question came in 2011 so data and facts of that period is not important. However, we can try to attempt and analyse the same question in light of recent data i.e. from 2020-2024
Statement 1 is incorrect: With respect to the five year period just before 2011, The GDP growth rate did not steadily increase during this period. It declined significantly in 2008-09 due to the global financial crisis before recovering in the subsequent years. For last few years, the growth rate of GDP in India is as follows:
Year GDP Growth Rate (%) 2016-17 8.26 2017-18 7.04 2018-19 6.12 2019-20 4.18 2020-21 -10.29 2021-22 8.2 2022-23 9.7 2023-24 8.2 2024-25 6.4 With respect to 2020-2024, we can clearly see that it has not been steadily rising for five years.
Statement 2 is incorrect: Similar to GDP growth, the per capita income growth rate did not steadily increase over these five years. There was a noticeable dip in 2008-09 due to the economic slowdown. For last few years, growth rate in per capita Income in India is as follows:
Fiscal Year Growth Rate (%) 2016-2017 7.1 2017-2018 6.8 2018-2019 6.1 2019-2020 4.2 2020-2021 -6.57 2021-2022 17.47 2022-2023 5.16 2023-2024 5.01 With respect to 2020-2024, we can clearly see that it has not been steadily rising for five years.