Indian Economy Data Interpretation

Question 1

What is the ratio of the current account balance in 2010 to the current account balance in 2005?

Accepted Answer

E. Current account balance (2010) = $3.268\% 	imes 73555.34 = 2403.79$. Current account balance (2005) = $1.272\% 	imes 35662.2 = 453.62$. Ratio = $2403.79 / 453.62 \approx 5.30$.

Question 2

Read the statements given below: 1. Exports were more than imports in 2006 2. Imports were more than exports in 2009 3. Exports increased at faster rate than imports during the period 2005 to 2010 Which of the above statements is necessarily true?

Accepted Answer

C. Since base values of imports and exports are not given, statements 1 and 2 cannot be verified. Comparing the cumulative percentage growth rates from 2005 to 2010 shows exports grew faster than imports overall.

Question 3

What was the approximate number of unemployed persons in 2006?

Accepted Answer

A. Population in 2006 = $	ext{GDP} / 	ext{Per Capita GDP} = 41159.73 	imes 10^9 / 36553.93 = 1126$ million. Unemployed = $8.9\% 	imes 1126 \approx 100$ million.

Indicator	Unit	2005	2006	2007	2008	2009	2010
GDP, current prices	Rs Billions	35662.2	41159.73	47675.86	54470.27	60712.76	73555.34
GDP, per capita current prices	Rs	32128.1	36553.93	41747.69	47038.23	51714.45	61784
Gross national savings Percent of GDP	%	32.88	34.28	36.65	32.17	35.08	32.14
Inflation, average consumer prices index	Index	115.67	122.92	130.75	141.67	157.08	175.92
Volume of imports of goods and services	% Change	17.99	9.438	16.3	10.84	8.321	16.49
Volume of exports of goods and services	% Change	18.88	13.83	17.13	10.63	0.813	21.86
Unemployment rate	%	9.2	8.9	7.8	7.2	6.8	7.32
Current account balance percent of GDP	%	-1.272	-1.024	-0.701	-2.475	-2.066	-3.268

Indian Economy Data Interpretation

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