According to official estimates, what was the real Gross Domestic Product growth rate of India in the financial year 2016 to 2017?

Difficulty: Easy

Correct Answer: 7.10 percent growth

Explanation:


Introduction / Context:
Real Gross Domestic Product growth rate is a widely used indicator of how fast an economy is expanding after adjusting for inflation. For India, annual growth figures are frequently asked in general knowledge and Indian economy examinations. This question focuses on the growth rate in the financial year 2016 to 2017.


Given Data / Assumptions:

  • The period under consideration is financial year 2016 to 2017.
  • We refer to real GDP at constant prices, not nominal GDP.
  • Official statistics from the Central Statistics Office reported the growth rate.
  • The options list several possible percentage values close to each other.


Concept / Approach:
Real GDP growth measures the percentage change in the value of goods and services produced in the economy after adjusting for price changes. The financial year 2015 to 2016 saw a higher growth rate, while 2016 to 2017 recorded a slightly lower but still strong growth. Official data indicated that real GDP growth in 2016 to 2017 was around 7.1 percent. Therefore, among the options provided, 7.10 percent growth is the correct answer.


Step-by-Step Solution:
1. Recall the trend in India growth during the mid twenty ten period, with growth above 7 percent. 2. For 2015 to 2016, real GDP growth was higher, at around 7.6 percent. 3. Due to various factors, including policy changes, the growth rate in 2016 to 2017 eased slightly. 4. Official data released by the Central Statistics Office reported growth of about 7.1 percent in that financial year. 5. Therefore, select 7.10 percent growth as the correct option.


Verification / Alternative check:
You can verify this by noting that economic surveys and budget documents from that period refer to real GDP growth moderating to about 7.1 percent in 2016 to 2017 after being higher in the previous year. Other figures such as 6.1 percent or 6.7 percent refer to different quarters or later years and should not be confused with the annual growth rate for 2016 to 2017.


Why Other Options Are Wrong:
Option A: 6.10 percent is lower than the figure widely reported for that year and typically corresponds to later periods.
Option C: 8.10 percent would imply an exceptionally high growth rate which was not achieved in that particular financial year.
Option D: 6.70 percent is closer but still not the official estimate for 2016 to 2017.
Option E: 5.50 percent is too low in comparison with the actual recorded rate at that time.


Common Pitfalls:
Candidates often confuse growth rates for different years or mix quarterly and annual figures. Because many numbers are close, such as 7.2, 7.4 or 7.6, it is easy to mis remember. It helps to link each figure with major policy events or economic conditions to create a mental timeline and avoid such confusion.


Final Answer:
7.10 percent growth

More Questions from Indian Economy

Discussion & Comments

No comments yet. Be the first to comment!
Join Discussion