Consider the following statements If we take into account the economic growth data of last few years...........

Economic and Social Issues Nature of Indian economy

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Consider the following statements. If we take into account the economic growth data of last few years

1. India has consistently grown faster than US and all other OECD developed economies in Europe.

2. India’s average growth rate has been higher than that of China

Which of the above is/are correct?

1 only

2 only

Both 1 and 2

None

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Explanation:

Let’s break it down:

- Statement 1: India has consistently grown faster than the US and other developed economies in Europe.

- This is true. Over the last few years, India’s GDP growth has regularly outpaced that of the US, UK, Germany, France, and pretty much the rest of the OECD crowd. Developed economies have been growing at 1–2%, while India’s been in the 5–7% range, sometimes even higher.

- Statement 2: India’s average growth rate has been higher than that of China.

- This is not accurate. China’s growth has slowed recently but, over the last several years (even stretching back a decade), China’s average annual growth rate remains higher than India’s. Only in very recent years has India’s growth rate edged above China’s for short periods, but not on a multi-year average basis.

- Option 1: Only the first statement is correct.

- Option 2: Only the second statement is correct.

- Option 3: Both statements are correct.

- Option 4: None are correct.

The correct answer is Option 1: 1 only.