Question

'According to the First Advance Estimates of National Income, released by the government January 7, 2021, India's gross domestic product (GDP) in 2020–21 dropped 8.7 per cent.' Which of the following can be the probable causes of such a decline?

• A. Decrease of production in primary sector
• B. Increase in exports to other countries
• C. Decline in manufacturing output
• D. Growth in the service exported

Answer 1

Answer: (A), (C)

Decline in manufacturing output

GDP calculates the monetary value of final goods and services produced. One of the prime reasons for a declining GDP of a country could be the decline in production of goods and services across various industries and sectors.