The real GDP growth rates of the Indian economy for the period 2016-17 to 2021-22 (the data for 2021-22 is as per the first advance estimates by the NSO) are given in Chart 1. Read the chart and identify the trends in the GDP growth rate cycle of India. [1 mark]

Which components of GDP are largely responsible for the negative growth rate of the Indian economy in the year 2020-21 and what factors during the outbreak of Covid pandemic do you think, have impacted these components adversely. [2 marks]

What could be the reason for net exports turning positive in the year 2020-21, contrary to the typical trend of being negative in most other years? [1 mark]

Read the scenario given below regarding the structural change in India and answer the question that follows

The Indian economy is perceived to have undergone substantial structural change since 1991, but the annual economic structural change indices show that the change has been significantly less when compared to the other major Asian economies. The services sector has dominated both the economic structure and growth rates, but it has failed to contribute much in terms of structural change. Both the services and industry sectors influenced GDP growth positively and significantly, but the impact of services growth on the overall growth of the Indian economy exceeded that of industry growth, and it had a significant positive impact on industry and emerged as the predominant sector of the Indian economy

In what ways do you think that the structural changes in the Indian economy since 1991 are a positive development? What imbalance still prevails in the Indian economy in spite of the progressive structural changes? [1 mark]

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