Instructions

Answer the following questions based on the table below, which reports certain data series from National Accounts Statistics of India at Current Prices.

Question 72

Identify the correct Statement:

Solution

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Gross Domestic Capital Formation expressed as a percentage of GDP (at Market Prices) in the year 2004-05 = $$\dfrac{1052232}{3242209}*100$$ = 32.45 percent.

Gross Domestic Capital Formation expressed as a percentage of GDP (at Market Prices) in the year 2005-06 = $$\dfrac{1266245}{3692485}*100$$ = 34.29 percent.

Gross Domestic Capital Formation expressed as a percentage of GDP (at Market Prices) in the year 2006-07 = $$\dfrac{1540749}{4293672}*100$$ = 35.88 percent.

Gross Domestic Capital Formation expressed as a percentage of GDP (at Market Prices) in the year 2007-08 = $$\dfrac{1896563}{4986426}*100$$ = 38.03 percent.

We can see that Gross Domestic Capital Formation expressed as a percentage of GDP (at Market Prices) has increased consistently between 2004-05 and 2007-08. Hence, option C is the correct answer.

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