Question: Consider the following statement:
(1) India emerged as the world’s fifth largest economy.
(2) India’s GDP (PPP) is higher than that of Japan and Germany in terms of purchasing power parity (PPP).
Choose the correct statement:
(a) Only(1)
(b) Only(2)
(c) Both (1) and (2)
(d) None of the above
Answer: (c)
Related facts:
- World Population Review, a US-based think tank, in its report said that India emerged as the world’s fifth largest economy by overtaking the UK and France in 2019.
- India’s economy is the fifth largest in the world with a GDP of $2.94 trillion.
- In purchasing power parity (PPP) terms, India’s GDP (PPP) is $10.51 trillion exceeding that of Japan and Germany.
- Purchasing power parity (PPP) defined as the rate at which the currency of one country would have to be converted into that of another country to buy the same amount of goods and services in each country.
- India’s economic liberalization began in the early 1990s and included industrial deregulation, reduced control on foreign trade and investment, and privatization of state-owned enterprises.
- Currently, India’s service sector is the fast-growing sector in the world accounting for 60% of the economy and 28% of employment.
- However, India’s real GDP growth is expected to weaken for the third straight year from 7.5 per cent to 5 per cent.