Which of the following is definitely a major indicator of the overall state of the economy of a country?

Introduction / Context:
This question asks you to identify a key macroeconomic indicator that reflects the overall health or state of an economy. Many statistics can be collected, such as inflation rates, bank counts, and food grain stocks, but some indicators are more central than others. Recognising which variable is widely used as a summary measure of economic performance is important for exams on Indian economy and general studies.

Given Data / Assumptions:

• The options include GDP growth rate, inflation rate, number of banks, stock of food grains, and number of notes printed.
• The phrase definitely a major indication suggests a broad, widely accepted measure.
• We are interested in the overall state of the economy rather than a narrow aspect.

Concept / Approach:
Gross Domestic Product measures the total value of final goods and services produced in an economy. The rate of GDP growth over time shows how fast the economy is expanding or contracting. It captures changes in output, income, and production across sectors. Although inflation, employment, and other variables also matter, GDP growth rate is usually the single headline indicator that governments, media, and international agencies use to describe economic performance.

Step-by-Step Solution:
Step 1: Identify which option directly measures total production or income in the economy.Step 2: The rate of GDP growth does this by comparing GDP across years.Step 3: Inflation rate measures changes in the price level, which is important but does not by itself show whether output is rising or falling.Step 4: The number of banks or stock of food grains are specific sectoral statistics, not all economy indicators.Step 5: Therefore the best single major indicator of the state of the economy is the rate of GDP growth.

Verification / Alternative check:
You can confirm this by observing how economic news is reported. Headlines often say that an economy grew by a certain percent in a year, or that growth has slowed down. International institutions like the World Bank and IMF publish GDP growth forecasts as shorthand for economic performance. Inflation, bank numbers, or food stocks are discussed, but none of them replace GDP growth as the main summary statistic.

Why Other Options Are Wrong:
Inflation is an important indicator of price stability but does not measure the level of economic activity or total output. The number of banks may reflect financial sector development to some degree but tells you little about agriculture, industry, and services output. The stock of food grains matters for food security but is influenced by policy and storage decisions and cannot summarise the whole economy. The number of notes printed is a technical matter for currency management and is not used as a performance indicator.

Common Pitfalls:
Students may be tempted to pick inflation because it affects daily life through prices of goods. However, the question asks about the state of the economy as a whole, for which growth in output and income is more central. Another pitfall is to look at very visible items such as the number of banks without thinking about how little they say about sectors like manufacturing or services. Always prefer broad, output based measures such as GDP growth when asked about overall economic performance.

Final Answer:
The variable that is definitely a major indicator of the overall state of an economy is the rate of GDP growth over time.