GDP growth calculated on constant prices - General Economics & Indian Economy
Q. Consider the following statements
1. India shifted to constant prices to take into account gross value addition in goods and services as well as indirect taxes from factor cost
2. The base year has been shifted to 2012-13 from 2004-05
Which of the above statements are correct?- Published on 04 Apr 15a. Only 1
b. Only 2
c. Both
d. None
ANSWER: Only 1
The GDP growth in 2010-11 was calculated based on factor cost which has now been changed to constant prices to take into account gross value addition in goods and services as well as indirect taxes. Besides, the base year has been shifted to 2011-12 from 2004-05 earlier.
