UPSC Prelims 2010 · General Studies
Question 148: Economy and Social Development
With reference to Indian economy, consider the following statements :
- 1.The Gross Domestic Product (GDP) has increased by four times in the last 10 years.
- 2.The percentage share of Public Sector in GDP has declined in the last 10 years.
Which of the statements given above is/are correct ?
AnswerThe answer is (b).
India's GDP did not grow four times in a decade in real terms; at constant prices it roughly doubled in the ten years to 2009-10, and even at current prices it rose less than four-fold. So statement 1 is wrong. The share of the public sector in GDP fell over the same period as the private sector and services grew after liberalisation, so statement 2 is correct. Remember: check claims of multiples against actual growth rates.
- 1. GDP roughly doubled in real terms in the decade; it did not quadruple.
- 2. The public sector's share of GDP declined as the private sector grew.
How you could have got this
- If you were sure statement 1 is not correct, (a) and (c) go: each of them includes 1.
What you needed to know: GDP roughly doubled in real terms in the decade; it did not quadruple.
- Then, if you were sure statement 2 is correct, (d) goes: it leaves 2 out.
What you needed to know: The public sector's share of GDP declined as the private sector grew.
Only (b) is left. This one needs every statement.
This follows an unofficial answer: UPSC has not published its key for this year, and if that answer is wrong, so is this path.
Which options go is worked out from UPSC’s key and the options, not by a model.
Why each option is right or wrong
- (a) Statement 1 overstates the growth of GDP.
- (b) Right: only statement 2 is correct.
- (c) Statement 1 is wrong, so 'both' fails.
- (d) Statement 2 is correct, so 'neither' fails.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2010, General Studies, Series A. The paper on upsc.gov.in.