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?
Answer & explanation
Answer: (d) Neither 1 nor 2
Neither statement is correct. GDP growth fell from 9.7% in 2006-07 to 9.0% in 2007-08, then to 6.7% in 2008-09 amid the global crisis, before recovering. Per capita income growth slowed in 2008-09 along with GDP and only then rose to 6.1% (2009-10) and 6.5% (2010-11). Neither series rose steadily over the five years before 2011.
- ✗ 1. GDP growth at factor cost (constant 1999-2000 prices) was 9.7% in 2006-07, 9.0% in 2007-08 and 6.7% in 2008-09. It fell two years in a row before recovering in 2009-10 and 2010-11, so the rise was not steady.
- ✗ 2. Per capita income growth tracks GDP growth minus population growth. Population growth changes little from year to year, so the drop in GDP growth from 9.0% to 6.7% in 2008-09 pulled per capita income growth down sharply as well. Growth in per capita income then recovered to 6.1% in 2009-10 and 6.5% in 2010-11. The 2008-09 slowdown rules out a steady rise.
- ✗ (c) This option would need both series to rise every year. Both slowed in 2008-09, so it fails.
Remember · India's GDP growth went 9.7% (2006-07), 9.0% (2007-08), 6.7% (2008-09, global crisis), then recovered. 'Steadily increased' over 2006-11 is wrong for both GDP and per capita income.
Sources
- Economic Survey 2008-09, Chapter 1: State of the Economy ↗ “The growth of GDP at factor cost (at constant 1999-2000 prices) at 6.7 per cent in 2008-09 nevertheless represents a deceleration from high growth of 9.0 per cent and 9.7 per cent in 2007-08 and 2006-07 respectively”
- PIB: Revised Estimates of Annual National Income 2010-11 and Quarterly Estimates of GDP 2010-11 ↗ “The growth rate in per capita income is estimated at 6.5 per cent during 2010-11 as against 6.1 per cent during 2009-10.”
Question: UPSC Civil Services (Preliminary) 2011, General Studies Paper I. Explanation: Minimalist IAS, checked 25 Oct 2026 (how we verify). ·
