UPSC Prelims 2011 · GS Paper I
Question 82: Economy and Social Development
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 ?
AnswerThe answer is (d).
India's GDP growth did not rise steadily in the five years before 2011. It was above 9 per cent in 2006-07 and 2007-08, then fell to under 7 per cent in 2008-09 after the global financial crisis, and recovered in the years after. Per capita income growth moved with it. Neither statement is correct, because both say the growth rate steadily increased.
- 1. GDP growth fell sharply in 2008-09, so it did not rise steadily.
- 2. Per capita income growth followed GDP growth and also dipped.
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 growth fell sharply in 2008-09, so it did not rise steadily.
- Then, if you were sure statement 2 is not correct, (b) goes: it includes 2.
What you needed to know: Per capita income growth followed GDP growth and also dipped.
Only (d) 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) GDP growth fell in 2008-09, so it did not rise steadily.
- (b) Per capita income growth followed GDP growth and dipped too.
- (c) Neither statement is correct.
- (d) Right: growth fell in the crisis year, so neither claim holds.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2011, General Studies Paper I, Series A. The paper on upsc.gov.in.