In the context of Indian economy, consider the following statements : 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 g

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Q: 82 (IAS/2011)
In the context of Indian economy, consider the following statements :
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?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,86,162,38,68,56,86

keywords: 

{'growth rate': [1, 1, 2, 2], 'indian economy': [0, 3, 3, 5], 'gdp': [0, 0, 0, 1], 'capita income': [0, 1, 3, 4]}

The correct answer is option 4, "Neither 1 nor 2". The question addresses two aspects of India`s economy over the last five years. Statement 1 is about the growth rate of GDP (Gross Domestic Product), which measures overall economic activity. Statement 2 is about the growth rate in per capita income, which is the average income per person.

Option 1 suggests that only the GDP growth rate has increased steadily, which is not accurate as the GDP growth has seen fluctuations over the given period. Option 2 suggests that only the per capita income`s growth rate has steadily increased, which is also incorrect as this rate can vary due to economic volatility and population changes.

Option 3, "Both 1 and 2," is incorrect because neither statement is accurate – the growth rates of both GDP and per capita income have seen fluctuations, not steady increases.

Hence, we conclude with option 4 – "Neither 1 nor 2" – indicating that both statements are incorrect, based on the recent trends in the Indian economy.