Question

Read the given passage and answer the questions:

The Government of India and various agencies continuously monitor and calculate the National Income using different methods, such as output, income, and expenditure methods, etc. These methods help in providing a comprehensive picture of India’s economic performance. From 2001 to 2021, India’s GDP grew at an average annual rate of around 6 to 7%. The country saw a significant shift from primarily agriculture-based to a more diverse economy, with services and industrial sectors playing a more prominent role in GDP composition. However, it is important to note that there were fluctuations and challenges along the way, including the global financial crisis in 2008 and the COVID-19 pandemic in 2020, which temporarily disrupted growth trends. In recent years, India has aimed for sustainable economic development, focusing on information technology. The initiatives such as “Make in India” and “Digital India” have been launched to boost economic activities and create employment opportunities, which in turn impact the National Income positively.

Questions:

1. What is the average annual growth rate of India for the period from 2001 to 2021? [1]
2. Which factors disrupted the growth trends of India’s National Income? [1]
3. Express your opinion about the given passage. [2]

Answer 1

1. India’s average annual growth rate for the period from 2001 to 2021 was around 6 to 7 per cent.
2. The global financial crisis in 2008 and the COVID-19 pandemic in 2020 are the factors that disrupted the growth trends of India’s National Income.
3. Since 2001, the economy of India has been expanding at a rate of approximately six to seven percent on average. A number of initiatives, including “Make in India” and “Digital India,” have started to increase the growth of the national GDP.