India Growth & Key Indicators — Set 4

Correct Answer: B. 93

India ranked 93rd out of 180 countries in the Corruption Perceptions Index (CPI) 2023 published by Transparency International. The index scores countries from 0 (highly corrupt) to 100 (very clean). Denmark consistently tops the CPI. India's score has improved marginally over the years, reflecting some progress in digitization and anti-corruption measures.

Correct Answer: B. 74.0%

India's literacy rate as per Census 2011 was 74.04%, up from 64.83% in 2001. Male literacy was 82.14% and female literacy was 65.46%. Kerala has the highest literacy rate (94%), while Bihar has the lowest (61.8%). The Census 2021 has been delayed; recent NFHS-5 data suggests literacy has further improved.

Correct Answer: B. 0.7%

India's WPI inflation in 2023-24 averaged around 0.7%, down sharply from 12.9% in 2021-22 and 4.7% in 2022-23. The sharp decline was due to falling commodity prices, particularly petroleum products, basic metals, and food articles. WPI measures price changes at the wholesale/producer level and is published by the Office of the Economic Adviser, DPIIT.

Correct Answer: D. 4% with ±2% tolerance band

RBI's MPC has a flexible inflation target of 4% CPI with a tolerance band of ±2% (i.e., 2% to 6%). This was notified by the Government of India in August 2016 under the monetary policy framework agreement. If inflation stays outside the 2–6% band for three consecutive quarters, RBI must explain to the government. Core CPI (excluding food and fuel) is closely watched.

Correct Answer: B. 68

India ranked 68th in the WEF Global Competitiveness Report 4.0 (2019), which was the last edition before the COVID pandemic paused the series. Singapore topped the 2019 rankings. India scored well on market size (3rd) and innovation capability but lower on infrastructure, health, and skills. India dropped from 58th in 2017-18 to 68th in 2019.

Correct Answer: B. A child's productivity at age 18 relative to full potential

The World Bank's Human Capital Index (HCI) measures the amount of human capital a child born today can expect to attain by age 18, given the risk of poor health and education in their country. A score of 1 means full human capital potential achieved. India's HCI is approximately 0.49, meaning a child in India will be 49% as productive as if they had complete education and full health. Singapore has the highest HCI.

Correct Answer: B. 3.2%

India's annual Unemployment Rate (UR) as per PLFS 2022-23 was approximately 3.2% on Usual Status basis. The Periodic Labour Force Survey (PLFS) is conducted by MoSPI/NSSO. The Labour Force Participation Rate (LFPR) also improved. However, CMIE (Centre for Monitoring Indian Economy) reports higher unemployment figures (around 7–8%) using different methodology and coverage.

Correct Answer: A. GDP growth without corresponding employment generation

Jobless growth refers to a situation where the economy grows in terms of GDP but does not generate enough employment. India has been criticized for experiencing jobless growth in certain periods, especially in manufacturing. This happens when growth is driven by capital-intensive sectors or when productivity gains displace workers. The Economic Survey has highlighted the need for labor-intensive manufacturing to address this.

Correct Answer: B. 5.9%

India's fiscal deficit target for 2023-24 was set at 5.9% of GDP in the Union Budget, down from 6.4% in 2022-23. The government aims to reach the FRBM target of 4.5% of GDP by 2025-26 and eventually 3% per medium-term consolidation. Fiscal consolidation is important for macroeconomic stability, credit rating improvement, and reducing inflationary pressure.

Correct Answer: B. 2022-23

India's total exports (merchandise + services) crossed $750 billion for the first time in 2022-23. Merchandise exports were approximately $450 billion and services exports about $322 billion. India has set a target of $2 trillion in exports by 2030. Electronics, petroleum products, gems and jewellery, engineering goods, and pharmaceuticals are key merchandise exports.