Q170. Which recent condition best illustrates India’s growth resilience amid a fragile world economy?
[UPSC CDS II (2026)]
A. Lower inflation with strong domestic consumption and investment
B. Sharp rupee depreciation alone
C. Growth funded mainly by revenue deficits
D. Cuts in public capital expenditure
Answer: A. Lower inflation with strong domestic consumption and investment
Explanation: The question links sustained domestic demand with macroeconomic stability. Household consumption and capital formation support aggregate demand and productive capacity; dependence on depreciation or a larger revenue deficit alone cannot establish durable resilience.
Q169. In the macroeconomic context, what is meant by the “crowding-in effect”?
[UPSC CDS II (2026)]
A. A decline in private borrowing
B. Public investment stimulating private investment
C. A falling fiscal deficit by definition
D. Higher imports owing to consumption
Answer: B. Public investment stimulating private investment
Explanation: Crowding-in occurs when government infrastructure or other productive spending improves returns for private businesses and encourages complementary investment. It contrasts with crowding-out, which can arise when government borrowing raises financing costs.
Q168. Which adjustment converts GDP at market prices into GDP at factor cost?
[SSC MTS 2025 (6 February 2026, Shift 1)]
A. Deduct net product taxes
B. Deduct only subsidies
C. Deduct depreciation
D. Deduct public-debt interest
Answer: A. Deduct net product taxes
Explanation: Market prices include net indirect taxes, or taxes less subsidies, on production and products. To obtain the equivalent factor-cost measure, subtract this tax-minus-subsidy adjustment; depreciation instead changes a gross aggregate into a net aggregate.
Q167. In which year did India’s nominal GDP pass the US$1 trillion threshold?
[SSC MTS 2025 (11 February 2026, Shift 3)]
A. 2007
B. 2008
C. 2009
D. 2006
Answer: A. 2007
Explanation: India crossed the one-trillion-US-dollar milestone in nominal GDP in 2007. This concerns the current-dollar size of annual domestic output, not purchasing-power-parity GDP, which follows a different valuation and had reached that level much earlier.
Q166. After India’s LPG reforms, the GDP growth rate cited for 2007–12 was approximately how much, against 5.6% in 1980–91?
[SSC MTS 2025 (11 February 2026, Shift 2)]
A. 6%
B. 6.5%
C. 8.2%
D. 12%
Answer: C. 8.2%
Explanation: The examination’s textbook comparison places post-reform growth around 8.2 percent for 2007–12, against 5.6 percent during 1980–91. These are historical period averages, not forecasts or annual figures, and should be interpreted using the source’s statistical conventions.
Q165. What share of GDP did India’s industrial sector account for in 1950–51 in the series used by the paper?
[SSC MTS 2025 (6 February 2026, Shift 3)]
A. 5%
B. 11.8%
C. 50%
D. 65%
Answer: B. 11.8%
Explanation: The keyed historical series assigns roughly 11.8 percent of output to industry in 1950–51, reflecting the economy’s agricultural predominance. Shares vary with definitions, rebasing and whether construction is classified alongside manufacturing; the stated figure belongs to this examination.
Q164. Which sector was identified as the largest contributor to India’s GVA in the Economic Survey 2025–26?
[RRB Group D 2025 (3 August 2026, Shift 2)]
A. Services
B. Mining and quarrying
C. Manufacturing
D. Agriculture and allied activities
Answer: A. Services
Explanation: Services contribute the largest part of India’s gross value added in the recent sectoral structure, exceeding either agriculture or individual industrial categories. GVA measures each sector’s contribution before adjustments for product taxes and subsidies in market-price GDP.
Q163. Which component is not separately counted in GDP expenditure totals?
[SSC CGL (22 September 2025, Shift 1)]
A. Final household purchases
B. Government service spending
C. Intermediate inputs consumed in making final goods
D. Net exports
Answer: C. Intermediate inputs consumed in making final goods
Explanation: An intermediate input is already embodied in the value of final production. The expenditure approach adds final consumption, investment, government purchases and net exports, avoiding duplicate counting of intermediate transactions.
Q162. What GDP growth for FY2025–26 did the RBI project in April 2025?
[RRB NTPC Graduate CBT I (19 June 2025, Shift 3)]
A. 5.0%
B. 6.5%
C. 4.5%
D. 6.3%
Answer: B. 6.5%
Explanation: The question refers to the estimate available in April 2025, not to subsequent revisions or final growth data. RBI forecasts are forward-looking assessments derived from expected demand, investment, inflation and external conditions.
Q161. What real GDP growth did the RBI forecast for FY2025–26 in the projection cited by this exam?
[RRB Group D (16 December 2025, Shift 2)]
A. 7.5%
B. 8.5%
C. 7.0%
D. 6.5%
Answer: D. 6.5%
Explanation: The cited forecast was 6.5 percent. Forecast values are conditional on the information available when they are made and should not be confused with later realised GDP growth or revised official estimates.
