Question
India is planning to become a $5 Trillion economy by 2024-25. Consider the following statements.
Select the correct answer using the code given below:
- It is in nominal terms
- It is in PPP terms
- It will require compounded annual real growth of around 8%, with 4% inflation
Select the correct answer using the code given below:
Answer: Option A
Answer: (a)
2018-19 2024-25 USD 2.7 Trillion USD 5 Trillion (nominal GDP) (Nominal GDP)
So, it requires 85% growth in six years, which comes down to around 12% compounded annual growth. This 12% is nominal growth which can be achieved with real growth of around 8% and inflation of around 4%.
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Answer: (a)
2018-19 2024-25 USD 2.7 Trillion USD 5 Trillion (nominal GDP) (Nominal GDP)
So, it requires 85% growth in six years, which comes down to around 12% compounded annual growth. This 12% is nominal growth which can be achieved with real growth of around 8% and inflation of around 4%.
Was this answer helpful ?
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