Q. Consider the following statements:
1.India’s per capita income has not improved much compared to its economic growth.
2.India needs to raise the Gross Fixed Capital Formation rate to achieve the status of a developed country.
Select the correct statements using the codes given below:

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C
Notes:

Statement 1: India is currently fifth largest economy. However, its per capita income is low when compared to its economic growth. In 2020, India’s rank was 142 out of 197 countries.

Statement 2: India needs to raise the Gross Fixed Capital Formation rate from the current level of 28% of GDP to 33% of GDP and it needs to maintain the incremental capital output ratio at 4 to achieve the status of a developed country.

Source: The Hindu