What is the approximate share of small savings collections from all states through Post Office schemes in India's gross domestic product?

Introduction / Context:
This question is about Indian economy and public savings behaviour. The government mobilises small savings from households through various Post Office schemes and other instruments. The total value of these small savings collections contributes a certain share to India's gross domestic product. Exam questions sometimes test whether candidates have a sense of the magnitude of this contribution.

Given Data / Assumptions:

We are asked about the share of small savings collection from all states through Post Office schemes in GDP.
Options are 2 percent, 3 percent, 7 percent, and 8 percent.
We rely on the approximate value typically quoted in public finance and GK notes.
We treat the figure as an approximate proportion rather than a constantly fixed number.

Concept / Approach:
The key idea is that small savings mobilised through Post Offices form a non trivial share of national income, serving as a reliable source of funds for the government. Various exam oriented sources mention that this share is around 7 percent of GDP when expressing the magnitude. Thus the approach is to recall this approximate figure and choose it from the options.

Step-by-Step Solution:
Step 1: Look at the options and note that 7 percent stands out as higher than simple token values like 2 or 3 percent but lower than 8 percent, which would be even more substantial. Step 2: Recall from GK notes that the share of small savings collections via Post Offices is often quoted as about 7 percent of GDP. Step 3: Compare this remembered figure with the options and confirm that 7 percent is explicitly listed. Step 4: Eliminate 2 percent and 3 percent as they underestimate the importance of small savings as described in government reports. Step 5: Eliminate 8 percent as it exceeds the standard approximate figure and is less frequently quoted.

Verification / Alternative check:
Public finance analyses of small savings schemes typically highlight that small savings are equivalent to a few percentage points of GDP, with widely circulated GK content placing the approximate share at about 7 percent. This aligns with the option in the question and helps confirm that 7 percent is the intended answer in exam settings, even though the exact ratio may vary slightly with time.

Why Other Options Are Wrong:
Two percent and three percent would suggest a very minor role for small savings in overall national income, which conflicts with detailed discussions that treat them as a significant pillar of domestic savings. Eight percent is a plausible distractor but does not match the standard approximate figure quoted in most exam resources. Therefore, choosing any of these other values would be inconsistent with the commonly accepted estimate.

Common Pitfalls:
A frequent pitfall is to guess without any sense of scale, leading candidates to pick lower figures that appear safe. Another mistake is to confuse the share in GDP with other percentages related to interest rates or government borrowings. To avoid this, aspirants should keep a small list of important approximate economic ratios, including fiscal deficit as a percentage of GDP and the share of small savings.

Final Answer:
The share of small savings collections from all states through Post Office schemes in India's GDP is approximately 7 percent.