Question
Which of the following are not counted in India’s GDP calculation?
Select the correct answer using the code given below:
- Informal sector activity
- Re-exports
Select the correct answer using the code given below:
Answer: Option D
Answer: (d)
Informal economic activity constitutes around 30% of the GDP. We may not be able to measure it accurately but while calculating the GDP figures informal activity is extrapolated based on formal activities and are included in GDP.
Re-exports means, something imported and then processed and then again exported. So, whatever goes in processing will be part of our GDP.
For example, India imported crude oil worth Rs 50 and then refined/processed it and then exported it in Rs. 80, then Rs. 80 – Rs. 50 = Rs. 30 will be included in India’s GDP
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Answer: (d)
Informal economic activity constitutes around 30% of the GDP. We may not be able to measure it accurately but while calculating the GDP figures informal activity is extrapolated based on formal activities and are included in GDP.
Re-exports means, something imported and then processed and then again exported. So, whatever goes in processing will be part of our GDP.
For example, India imported crude oil worth Rs 50 and then refined/processed it and then exported it in Rs. 80, then Rs. 80 – Rs. 50 = Rs. 30 will be included in India’s GDP
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