UPSC Prelims 1997 · General Studies
Question 5: Economy and Social Development
The average rate of domestic savings (gross) for the Indian economy is currently estimated to be in the range of
AnswerThe answer is (b).
Gross domestic savings in the mid-1990s ran at about the low-to-mid twenties as a percentage of GDP, which falls in the 20 to 25 per cent band the key gives. Households supply most of it, with the public and private corporate sectors adding the rest. The rate climbed above 30 per cent in the 2000s, so a question like this must be read with its year in mind.
Why each option is right or wrong
- (a) 15 to 20 per cent is below the level reached in the mid-1990s.
- (b) Right: the mid-1990s rate sat in the low-to-mid twenties as a share of GDP.
- (c) 25 to 30 per cent was reached only later, around the early 2000s.
- (d) 30 to 35 per cent was reached only in the mid-2000s.
Worth knowing: The savings rate has since risen well above this range, so the question is tied to its year.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 1997, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.