In the context of the Indian economy, consider the following statements:
- The growth rate of GDP has steadily increased in the last five years.
- The growth rate in per capita income has steadily increased in the last five years.
Which of the statements given above is/are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Explanation
Statement 1 is incorrect
- During the five-year period preceding the question (approximately 2005–06 to 2009–10), India’s GDP growth rate did not follow a steady upward trend. It fell significantly during the 2008–09 global financial crisis and later recovered, indicating year-to-year fluctuations rather than a consistent increase.
Statement 2 is incorrect
- The growth rate of per capita income showed a similar trend, falling during the global financial crisis and recovering subsequently.
