Mod 8: India’s Growth Record — Decades, Per Capita Milestones & Sectoral Trends

📖 Chapter 2 🧩 Module 9 of 16 ⏱️ ~4 min read 💡 28 MCQs

Topic Part 1 of 2

Concept

8.1 Seventy-five years of growth in phases

🏫 School level · NCERT Class 9–12 (the base for UPSC, BPSC, SSC and Bank exams)

From the Hindu rate to 7.8%

India’s growth since 1950 can be read in phases. Each phase has questions keyed to the series and base year of its time, so learn the story and answer from the question’s date.

Table 8.1 Phases of India’s growth
Period	Average real GDP growth (approx.)	What happened
1950–1980	≈ 3.5%	“Hindu rate”; plans, public sector, licence raj
1980s	≈ 5.5%	Early liberalisation, but rising deficits; saving ratio rose
1990s	≈ 6%	1991 crisis and LPG reforms; 1997-98 slowdown
2003–2008	≈ 8–9%	Fastest phase; investment and saving peaked around 2007-08
2008–2014	dipped to about 4.5–5% in 2012-14 (old series)	Global financial crisis, policy paralysis; 2009-10 drought
2020-21	negative	COVID-19 lockdowns; GNI and NNI fell at current and constant prices
2025-26	7.8%	Updated provisional estimate, base 2022-23 (NSO 2026); nominal growth 8.6%

Table 8.2 Per capita income milestones (answer for the year asked)
Year	Figure	Source / series
1867-68	₹20	Dadabhai Naoroji
1991-92	about ₹7,500 (keyed answer)	MPPSC 1994
2009-10	about ₹46,500 (current prices)	UPPSC Mains 2011 key
2010-11	₹35,993 at 2004-05 prices	UP UDA/LDA 2013 key
2025-26	₹2,08,090 per capita NNI (current prices); ₹1,93,480 at 2022-23 prices	NSO press note, 5 June 2026
2025 (calendar)	GDP per capita US$ 2,702.5; GDP US$ 3.96 trillion	World Bank WDI

💡 Level versus rate

“GDP at market prices (in rupees) has increased steadily” is about the level, and it was true in the decade asked (UPSC 2015). “The growth rate of real GDP has steadily increased” is about the rate, and it was false: growth went up and down. A smaller positive growth rate still means a higher level.

⭐ Key Points for Exams

1950–80 ≈ 3.5%; 1980s ≈ 5.5%; 2003–08 ≈ 8–9%; 2020-21 negative; 2025-26 7.8%.
Per capita: ₹20 (1867-68); about ₹7,500 (1991-92); ₹2,08,090 NNI (2025-26).
A falling growth rate can still mean a rising level.

📌 Quick-Fire One-Liners

Year when GNI and NNI growth were negative? Answer: 2020-21
Real GDP growth FY 2025-26? Answer: 7.8%

Topic

Questions

MCQs

Answer this question, then use Next.

Which instruction is right when a stem asks for 1991-92 per capita income?

Explanation: The 1991-92 item is keyed to about ₹7,500. Later official levels are a different cell.

Real growth is 7 percent, then 5 percent, then 6 percent. Which statement is right?

Explanation: A smaller positive growth rate is still an increase in the level. Steady increase of the rate is a different claim.

[Current affairs] According to the NSO’s updated provisional estimates (2026), India’s real GDP growth in FY 2025-26 was:

Real growth was 7.8% at constant 2022-23 prices (the earlier provisional figure was 7.7%). 8.6% is nominal growth; 9.3% is real growth of the tertiary sector.

[RBI Grade B level] According to the World Bank, India’s GDP per capita in 2025 (current US dollars) was about:

World Development Indicators show US$ 2,702.5 per head and total GDP of about US$ 3.96 trillion for 2025. A dollar figure depends on the exchange rate; PPP figures are much higher.

Question 58: As per data released by Government of India in March 2011, the Per Capita Income of Indians rose by 14.5% in 2009-10. What is the Per Capita Income figure (in nearest hundred)? [U.P.P.C.S. (Mains) 2011]

Explanation: According to Economic Survey data for 2009-10 at current prices, per capita income was ₹46,249, closest to ₹46,500.

Question 59: In year 2013-14 in India, Per Capita Net National Income at current prices and factor cost was: [Chhattisgarh P.C.S. (Pre) 2015]

Explanation: As per revised 2011-12 series estimates, Per Capita Net National Income at current prices in 2013-14 was ₹79,118, which is not present in the options.

Question 60: In which year the rate of growth of India's Per Capita Income at constant prices was the highest during the period 1951-52 to 2015-16? [63rd B.P.S.C. (Pre) 2017; R.A.S./R.T.S. (Pre) 2016]

Explanation: Under the 2004-05 series, the maximum growth rate of Per Capita Income at constant prices was recorded in 2007-08 at 8.6%.

Question 61: In the year 2010-11 (at 2004-05 prices), which of the following is the Per Capita Income in India? [U.P.U.D.A./L.D.A. (Pre) 2013]

Explanation: As per the Quick Estimates of 2010-11 at 2004-05 prices, Per Capita Income stood at ₹35,993. Quick estimates are revised later, so the number keyed by the paper is the one to remember for this item.

Question 62: In the year 1991-92, the Per Capita Annual Income in India was about: [M.P.P.C.S. (Pre) 1994]

Explanation: Per Capita Income in 1991-92 was ₹6,835 at current prices, making ₹7,500 the nearest option. Historical level items are keyed to the series of their time; compare levels only after adjusting for prices.

Question 63: In which of the following year annual growth rate of Gross National Income and Net National Income on both current prices and constant prices were Negative in India? [R.A.S/R.T.S. (Pre) 2024]

Explanation: Due to the economic paralysis of nationwide COVID lockdowns, annual growth rates of both GNI and NNI turned negative in 2020-21.

Question 1 of 10

One-liners

Write your answer, then submit to see the correct answer.

Year when GNI and NNI growth were negative?

2020-21

Real GDP growth FY 2025-26?

7.8%

Question 1 of 2

Topic Part 1 of 2

Concept

8.2 Sector shares and sector growth today (NCERT Class 10 sectors)

🏫 School level · NCERT Class 9–12 (the base for UPSC, BPSC, SSC and Bank exams)

Services lead output and growth

Fig 8.1 Services as a group are well over half of India’s GVA; agriculture is about 18%.

Fig 8.2 Agriculture grew slowest; services fastest.

📐 Why agriculture drives single years

Agriculture is a small share of GVA but depends on the monsoon, so it swings. In 2009-10 a drought made farm growth briefly negative; in 2013-14 a good monsoon lifted farm growth and helped total GDP growth rise from 4.5% to 4.7% (old series). The saving ratio, which rose through the 1980s and 1990s, is the long-run engine behind higher average growth.

⭐ Key Points for Exams

Nominal GVA 2025-26: finance/real estate/IT 27%, agriculture 18%, manufacturing 15%.
Real GVA growth 2025-26: primary 3.2%, secondary 8.8%, tertiary 9.3%.
Monsoon-driven agriculture moves single-year growth.

📌 Quick-Fire One-Liners

Fastest growing broad sector in 2025-26? Answer: Tertiary
Sector of a public hospital (NCERT 10)? Answer: Tertiary

Topic

Questions

MCQs

Answer this question, then use Next.

Which pair matches the keys?

Explanation: The saving-ratio item is true and explanatory. The foodgrain story is false. The 1997-98 investment reason does not explain the recession.

A public hospital is classified by NCERT Class 10 as:

Explanation: Health services are tertiary. Public or private is a further classification, not a fourth sector.

[Current affairs] In India’s nominal GVA for FY 2025-26, the single largest group is:

NSO’s composition chart: finance, real estate, IT and professional services about 27%, agriculture 18%, manufacturing 15%, construction 8%.

[Current affairs] Which broad sector recorded the fastest real GVA growth in FY 2025-26?

NSO’s June 2026 note: primary 3.2%, secondary 8.8%, tertiary 9.3%; total real GVA 7.9%.

Question 71: In India Gross Domestic Product growth rate increased from 4.5 percent in 2012-13 to 4.7 percent in 2013-14, because of: [Chhattisgarh P.C.S. (Pre) 2014]

Explanation: Favorable monsoon rains lifted agricultural growth to 4.7% in 2013-14 compared to 1.4% in 2012-13, boosting aggregate GDP.

Question 72: Which of the following sub-sectors has experienced negative growth rate in 2009-10 over 2008-09? [U.P. R.O./A.R.O. Mains 2013]

Explanation: As per preliminary Economic Survey 2009-10 data, agriculture was initially estimated with negative growth due to severe drought, though later revised upward.

Question 75: Assertion (A): The Indian Economy experienced recession in the fiscal year 1997-98.
Reason (R): There has been a fall in the public investment in the recent past. [U.P.P.C.S. (Pre) 1998]

Explanation: Both statements were factually correct for the contemporary period (growth slowed to 4.3% and public investment fell to 6.6%), but public investment alone did not fully explain the cyclical slowdown.

Question 76: Assertion (A): Indian economy has moved to a higher average GDP growth rate in the last 15 years.
Reason (R): The saving ratio has consistently increased in this period. [U.P.P.C.S. (Pre) 1997]

Explanation: Higher capital accumulation driven by domestic savings (rising from 18.9% in 1980 to over 25% by 1996) was the primary economic engine propelling India to higher average GDP growth.

Question 86: Assertion (A): Economic growth in India has generally remained stagnant for the last ten years.
Reason (R): Foodgrains production has not increased for last several years. [U.P.P.C.S. (Pre) 2001]

Explanation: Both statements are factually incorrect. Post-1991 reforms spurred dynamic GDP growth (not stagnation), and foodgrain production expanded consistently from 176 million tonnes in 1990-91 to over 212 million tonnes by 2001-02.

Question 1 of 9

One-liners

Write your answer, then submit to see the correct answer.

Fastest growing broad sector in 2025-26?

Tertiary

Sector of a public hospital (NCERT 10)?

Tertiary

Question 1 of 2

Topic Part 1 of 2

Concept

🎯 Competitive Level (UPSC Pre · BPSC Pre · State PSC · SSC · Bank PO · RBI Grade B): Growth trends in past papers

Exam map
Exam	What it asks from this module
UPSC Prelims	“steadily increased” statements (2011, 2015)
BPSC / State PSC	year of highest per capita income growth (63rd BPSC 2017); negative GNI year (RAS 2024); 1990s peak (UPPSC 2002)
SSC / Railways	latest growth rate, largest sector
Bank PO / RBI Grade B	growth projections (RBI, IMF, ADB), sector growth

🏆 Previous Year Question · R.A.S./R.T.S. (Pre) 2024

R.A.S./R.T.S. (Pre) 2024

In which of the following years were the annual growth rates of Gross National Income and Net National Income at both current and constant prices negative in India? (a) 2018-19 (b) 2019-20 (c) 2020-21 (d) 2021-22

2019-20 saw a slowdown, but growth stayed positive.
2020-21 was the COVID-19 lockdown year; output and incomes contracted.
2021-22 saw a strong rebound.

⭐ Key Points for Exams

UPSC 2011 and 2015: growth rates fluctuate; levels rise.
Projection questions (IMF, ADB, RBI) keep the figure of their year.

📌 Quick-Fire One-Liners

Highest per capita income growth year 1951-52 to 2015-16 (2004-05 series)? Answer: 2007-08

Topic

Questions

MCQs

Answer this question, then use Next.

Question 64: In the gone by decade of 90s the highest rate of growth of GDP was obtained in which of the following year: [U.P.P.C.S. (Pre) 2002]

Explanation: Under 2011-12 revised series, the highest growth in the 1990s decade was registered in 1999-2000 at 8.8% (and 1996-97 under older series).

Question 65: Indian Economy has witnessed highest growth rate in the year: [U.P.P.C.S. (Pre) 2008]

Explanation: Among the choices, growth peaked in 2006-07 when the economy grew close to 9.6% (8.0% under revised series). Under the 2004-05 series, 2005-06 to 2007-08 saw growth above 9%, the fastest phase before the 2008 global crisis.

Question 66: In the context of Indian Economy, consider the following statements:
1. The growth rate of GDP has steadily increased in the last five years.
2. The growth rate in Per Capita Income has steadily increased in the last five years.
Which of the statements given above is/are correct? [I.A.S. (Pre) 2011]

Explanation: Neither GDP growth nor Per Capita Income growth increased monotonically every year; the growth trajectory fluctuated up and down.

Question 67: With reference to Indian Economy, consider the following statements:
1. The rate of growth of Real Gross Domestic Product has steadily increased in the last decade.
2. The Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade.
Which of the statements given above is / are correct? [I.A.S. (Pre) 2015]

Explanation: Statement 1 is incorrect because real growth fluctuated. Statement 2 was correct for the question period as absolute nominal GDP at market prices increased year after year.

Question 68: According to Economic Survey 2020-21, real growth rate for financial year 2022 (2021-22) was projected based on IMF estimates at: [M.P. P.C.S. (Pre) 2021]

Explanation: Economic Survey 2020-21 cited the IMF projection of 11.5% for India\'s real GDP growth in 2021-22. The Survey quoted the IMF’s January 2021 projection; actual growth for 2021-22 came in lower after the second COVID wave.

Question 69: The annual growth rate of the Indian Economy at 1999-2000 prices during 2005-2006 has been estimated between: [U.P.P.C.S. (Pre) 2001, 2006]

Explanation: CSO estimates for 2005-06 at 1999-2000 prices placed GDP growth at 8.4%, falling in the 8 to 9 percent bracket.

Question 70: The expected GDP growth rate for 1998-99 was: [U.P.P.C.S. (Pre) 1999, 2000]

Explanation: At 1993-94 prices, contemporaneous estimates placed the 1998-99 growth rate at 6.5%. Projections of that period were made at 1993-94 prices and were later revised; keep the paper’s key.

Question 73: As per estimates of the Reserve Bank of India, growth rate in 2002-2003 was: [U.P.P.C.S. (Mains) 2002]

Explanation: In its mid-term monetary review in October 2002, the RBI pegged expected GDP growth in the 5.0-5.5% range due to drought conditions.

Question 74: According to Asian Development Report 2004, growth rate of India in 2005 will be: [U.P.P.C.S. (Mains) 2004]

Explanation: ADB\'s Asian Development Outlook 2004 projected India\'s economic growth for 2005 at 6.9%. The Asian Development Bank (Manila) publishes the Asian Development Outlook each year with growth forecasts for member economies.

Question 1 of 9

One-liners

Write your answer, then submit to see the correct answer.

Highest per capita income growth year 1951-52 to 2015-16 (2004-05 series)?

2007-08

Question 1 of 1