GS3 - Economy - Half Test - 04

Question 1

What is the mandate of NITI Aayog and how does it differ from the former Planning Commission?

Answer 1

NITI Aayog was established in 2015 to re-imagine India’s development agenda by dismantling old-style central planning and making strategies for transforming India. Unlike the Planning Commission, it focuses on flexibility, collaboration, and outcome-oriented approaches.

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Question 2

What are the key differences in the approach of NITI Aayog and the Planning Commission regarding federalism?

Answer 2

NITI Aayog adopts a bottom-up, collaborative approach allowing states more autonomy (cooperative federalism), while the Planning Commission used a top-down, centralized approach with the central government playing a dominant role.

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Question 3

NITI Aayog is based on ideals of ____ reforms and a ____ market economy, while the Planning Commission was inspired by the ____ Union and worked on the ideals of ____.

Answer 3

LPG; free; Soviet; socialism

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Question 4

NITI Aayog adopts both short-term and long-term views, such as the ____, ____, and ____.

Answer 4

Three-Year Action Plan; Seven-Year Strategy; 15-year Vision Document

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Question 5

Unlike the Planning Commission, NITI Aayog has no ____ powers and acts as an ____ body or think tank.

Answer 5

financial; advisory

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Question 6

List all the key keywords and boxed terms related to the differences between NITI Aayog and Planning Commission.

Answer 6

Keywords:
* NITI Aayog,
* Planning Commission,
* LPG reforms,
* free market economy,
* Three-Year Action Plan,
* Seven-Year Strategy,
* 15-year Vision Document,
* bottom-up approach,
* cooperative federalism,
* competitive federalism,
* innovation,
* advisory body,
* think tank,
* stakeholder engagement,
* outcome-based monitoring,
* * input-based planning.

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Question 7

What are the main issues with the Planning Commission’s approach? (Bullet points, keywords only)

Answer 7

• Centralized, top-down planning
• Rigid, bureaucratic process
• Limited stakeholder engagement
• Input-based monitoring
• Uniform five-year plans

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Question 8

What are the main solutions or improvements introduced by NITI Aayog? (Bullet points, keywords only)

Answer 8

• Bottom-up, collaborative approach
• Cooperative and competitive federalism
• Advisory, think tank role
• Stakeholder partnerships
• Outcome-based monitoring

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Question 9

What is the way forward for India’s development planning? (Bullet points, keywords only)

Answer 9

• Flexible, adaptive strategies
• Enhanced state autonomy
• Innovation-driven solutions
• Broader stakeholder engagement
• Focus on outcomes

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Question 10

List 4-5 value addition points that provide an edge in understanding the NITI Aayog vs Planning Commission debate.

Answer 10

• Recognizes shift from central planning to collaborative governance
• Emphasizes innovation and technology-driven solutions
• Promotes competitive and cooperative federalism
• Encourages outcome-based policy evaluation
• Facilitates multi-stakeholder engagement

Question 11

What is potential GDP and why is it important for an economy?

Answer 11

Potential GDP is an estimate of the value of output that the economy would have produced if labor, capital, and technologies had been employed at their maximum sustainable rates, consistent with steady growth and stable inflation. It is used as a yardstick to measure the performance of an economy.

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Question 12

What are the main sectors discussed as barriers to realizing India’s potential GDP?

Answer 12

The main sectors are
* agriculture (fragmented landholdings, lack of infrastructure)
* industry (low technology adoption, missing middle, low productivity)
* impact of global factors (slowdown, protectionism, employability gap, brain drain, logistics costs)

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Question 13

Cloze: In the agriculture sector, average landholdings were ____ ha in 2015-16, restricting mechanization and scalability.

Answer 13

1.08 ha

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Question 14

Cloze: Agri-GDP contribution is ____% despite employing a large workforce, leading to disguised unemployment.

Answer 14

16%

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Question 15

Cloze: Only ____% of workers in India are formally skilled, compared to ____% in South Korea.

Answer 15

4.69%; 96%

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Question 16

List all the key keywords and boxed terms related to potential GDP and its barriers.

Answer 16

Keywords:
* potential GDP
* maximum sustainable rates,
* steady growth,
* stable inflation,
* fragmented landholdings,
* mechanization,
* cold storage,
* food processing,
* value maximization,
* missing middle,
* low productivity,
* global slowdown,
* employability gap,
* brain drain,
* logistics cost,
* FPOs,
* e-NAM,
* PLI Scheme,
* Startup India,
* MUDRA,
* Atal Innovation Mission,
* sunrise sector,
* 4th IR,
* FTAs,
* fiscal consolidation,
* Viksit Bharat 2047.

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Question 17

What are the main issues preventing India from realizing its potential GDP? (Bullet points, keywords only)

Answer 17

• Fragmented landholdings
• Lack of agri-infrastructure
• Low technology adoption
• Missing middle in industry
• Global slowdown, protectionism
• High employability gap
• Brain drain
• High logistics cost

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Question 18

What are the main solutions suggested to realize potential GDP? (Bullet points, keywords only)

Answer 18

• Promote FPOs, cooperative farming
• Expand e-NAM, food processing
• High-value agri exports
• Transform youth to job creators
• Increase female labor force participation
• Reskilling, upskilling
• Promote innovation, sunrise sectors
• Integrate with GVCs, FTAs
• Fiscal consolidation, ease of doing business

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Question 19

What is the way forward for realizing India’s potential GDP? (Bullet points, keywords only)

Answer 19

• Focus on macroeconomic health
• Fiscal consolidation
• Attract foreign capital
• Promote ease of doing business
• Realize vision of Viksit Bharat 2047

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Question 20

List 4-5 value addition points that provide an edge in understanding potential GDP and its barriers.

Answer 20

• Recognizes sector-specific bottlenecks
• Emphasizes role of innovation and upskilling
• Highlights global integration (FTAs, GVCs)
• Connects macroeconomic policy to growth
• Links demographic dividend to economic potential

Question 21

What is Digital Public Infrastructure (DPI) and why is it significant for India?

Answer 21

Digital Public Infrastructure (DPI) refers to digital tools, systems, and solutions established and maintained by governments or public entities to enable digital interactions, services, and operations for the benefit of the public. It is significant for driving digital inclusion and economic transformation in India.

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Question 22

How does DPI drive economic transformation for businesses and citizens?

Answer 22

DPI protects individuals and businesses from monopolistic practices, enables inclusive e-commerce, financial inclusion (e.g., JAM trinity), modernizes agriculture, supports digital education, fast-tracks project monitoring, reforms tax administration, and facilitates seamless logistics and secure data sharing.

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Question 23

Cloze: UPI was developed to counter data colonization by ____ and promote inclusive e-commerce through platforms like ____.

Answer 23

VISA; ONDC

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Question 24

Cloze: Only ____% of women own a mobile phone compared to over ____% of men, as per the Oxfam report.

Answer 24

32%; 60%

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Question 25

Cloze: Examples of DPI in India include ____, ____, and ____, which enable digital education and project monitoring.

Answer 25

SWAYAM, Diksha, PM-Gati-Shakti portal ## Footnote p.5

Question 26

List all the key keywords and boxed terms related to Digital Public Infrastructure (DPI).

Answer 26

Keywords: * Digital Public Infrastructure (DPI), * digital inclusion, * UPI, * ONDC, * JAM trinity, * OCEN, * Agri-stack, * Land Record Modernization, * SWAYAM, * Diksha, * PM-Gati-Shakti, * GSTN, * ICEGATE, * FASTag, * ULIP, * DEPA, * e-Shram, * Udhyam, * digital have nots, * digital literacy, * PMGDISHA, * Bharat Net, * PM WANI, * open standards, * interoperability, * cybersecurity. ## Footnote p.4-5

Question 27

What are the main issues and challenges associated with DPI? (Bullet points, keywords only)

Answer 27

* Digital exclusion (gender gap, urban bias) * Lack of supporting infrastructure * Digital frauds, data breaches * Centralization, cyber-attacks * Surveillance concerns ## Footnote p.5

Question 28

What are the main solutions to address DPI challenges? (Bullet points, keywords only)

Answer 28

* Data protection, privacy, informed consent * Anchor institutions (UIDAI) * User-centric, phygital approach * Data localization, domestic infrastructure * Digital literacy campaigns (PMGDISHA) * Broadband expansion (Bharat Net, PM WANI) * Open standards, interoperability * Cybersecurity strategies ## Footnote p.5

Question 29

What is the way forward for harnessing DPI’s potential? (Bullet points, keywords only)

Answer 29

* Balance digital empowerment and rights * Safeguard privacy and security * Foster competitive digital ecosystem * Expand access and inclusion ## Footnote p.5

Question 30

List 4-5 value addition points that provide an edge in understanding DPI.

Answer 30

* DPI as a tool for democratizing technology * Role in bridging rural-urban digital divide * DPI’s impact on financial and social inclusion * DPI as a model for other developing nations * Emphasis on user-centric and secure design

Question 31

What is unemployment and which agency is responsible for computing it in India?

Answer 31

Unemployment refers to the state where an individual of working age is without work, despite actively seeking and being available for work. The National Statistical Office (NSO) is the nodal agency for computing unemployment in India. ## Footnote p.5

Question 32

What are the two main methods used by NSO to compute unemployment in India?

Answer 32

The two main methods are: 1. Usual Principal Status (UPS): Based on a reference period of the last 365 days, reflecting chronic unemployment. 2. Current Weekly Status (CWS): Based on a reference period of a week, counting a person as employed if they worked at least one hour on at least one day in the past seven days. ## Footnote p.5

Question 33

Cloze: The Usual Principal Status (UPS) method uses a reference period of the last ____ days, while the Current Weekly Status (CWS) uses a reference period of ____ days.

Answer 33

365; 7 ## Footnote p.5

Question 34

Cloze: Under CWS, an individual is considered employed if they have worked for at least ____ hour on at least ____ day during the seven days prior to the survey date.

Answer 34

one; one ## Footnote p.5

Question 35

Cloze: The NSO’s methodology attempts to capture both ____ (UPS) and ____ (CWS) unemployment.

Answer 35

chronic; short-term ## Footnote p.5

Question 36

List all the key keywords and boxed terms related to unemployment computation in India.

Answer 36

Keywords: * unemployment, * National Statistical Office (NSO), * Usual Principal Status (UPS), * Current Weekly Status (CWS), * chronic unemployment, * short-term unemployment, * reference period, * labour force participation, * informal sector, * PLFS, * data collection, * policy making. ## Footnote p.5-6

Question 37

What are the main issues with the current unemployment computation methodology? (Bullet points, keywords only)

Answer 37

- Excludes domestic work, underemployment - Inadequate informal sector coverage - No data on education/skills - Delay in data release - Data quality concerns ## Footnote p.6

Question 38

What are the main solutions suggested to improve unemployment data? (Bullet points, keywords only)

Answer 38

- Broaden/update definitions - Comprehensive informal sector survey - Collect education/skill data - Use modern technology (apps, blockchain) - Frequent surveys, timely release - Openness to scrutiny/feedback ## Footnote p.6

Question 39

What is the way forward for improving unemployment data and policy? (Bullet points, keywords only)

Answer 39

- Improve data collection - Enable effective policy making - Timely, accurate, comprehensive data - Stakeholder engagement ## Footnote p.6

Question 40

List 4-5 value addition points that provide an edge in understanding unemployment computation in India.

Answer 40

- Recognizes chronic vs. short-term unemployment - Highlights informal sector data gap - Emphasizes technology in data collection - Links data quality to policy effectiveness - Advocates for education/skill data integration ## Footnote

Question 41

What is the 'Make in India' initiative and what is its main target for the manufacturing sector's GDP contribution?

Answer 41

'Make in India' was launched in September 2014 to make India a global manufacturing hub and reinvigorate the manufacturing sector. It targets increasing the manufacturing sector's contribution to India's GDP to 25% by 2025. ## Footnote p.6

Question 42

What are the key global and domestic impediments to 'Make in India'?

Answer 42

Key impediments include: China's first mover advantage, global competition (Vietnam, Bangladesh), lack of FTAs, protectionism, global supply chain disruptions, non-tariff barriers, scarcity of land, high land cost, lack of digital land banks, skilled labor shortage, inadequate infrastructure, high logistics cost, credit constraints for MSMEs, inadequate R&D investment, red-tapism, high compliance cost, complex labor laws, weak dispute redressal, weak IPR protection, inverted duty structure, and policy flip-flops. ## Footnote p.6

Question 43

Cloze: The manufacturing sector's contribution to India's GDP has stagnated at around ____%, despite 'Make in India' efforts.

Answer 43

17% ## Footnote p.6

Question 44

Cloze: 'Make in India' aims to increase the manufacturing sector's GDP contribution to ____% by 2025.

Answer 44

25% ## Footnote p.6

Question 45

Cloze: Initiatives like ____, ____, and ____ are suggested to address infrastructure deficits for manufacturing.

Answer 45

NIP, NMP, PM Gati Shakti ## Footnote p.7

Question 46

List all the key keywords and boxed terms related to 'Make in India' impediments and solutions.

Answer 46

Keywords: * Make in India, * manufacturing hub, * GDP contribution, * first mover advantage, * global competition, * FTAs, * protectionism, * supply chain, * non-tariff barriers, * land banks, * skilled labor, * infrastructure, * logistics cost, * MSMEs, * R&D, * red-tapism, * compliance cost, * labor laws, * dispute redressal, * IPR, * inverted duty, * policy flip-flops, * NIP, * NMP, * PM Gati Shakti, * SEZs, * RAMP, * PSL, * AI, * semiconductors, * drones, * technical textiles, * network product, * SCRI, * MSP, * BTIA. ## Footnote p.6-7

Question 47

What are the main issues impeding domestic manufacturing in India? (Bullet points, keywords only)

Answer 47

* Global competition, lack of FTAs * Land scarcity, high cost * Infrastructure deficit * Skilled labor shortage * High logistics cost * Credit constraints for MSMEs * Red-tapism, compliance cost * Complex labor laws * Weak IPR, policy flip-flops ## Footnote p.6

Question 48

What are the main solutions to encourage domestic manufacturing? (Bullet points, keywords only)

Answer 48

* Rationalize policies (tax, labor, land) * Judicial reforms, single window solutions * Strengthen IPR, address infrastructure deficit * Capacity building for MSMEs * Invest in emerging technologies * Skilling workforce * International collaboration, FTAs ## Footnote p.7

Question 49

What is the way forward for strengthening 'Make in India'? (Bullet points, keywords only)

Answer 49

* Targeted policy interventions * Proactive stakeholder engagement * Atmanirbhar Bharat focus * Leverage technology and innovation * Strengthen supply chains ## Footnote p.7

Question 50

List 4-5 value addition points that provide an edge in understanding 'Make in India' challenges and solutions.

Answer 50

* Recognizes global and domestic barriers * Emphasizes infrastructure and policy reforms * Highlights MSME and technology roles * Connects supply chain resilience to manufacturing * Focuses on Atmanirbhar Bharat vision ## Footnote p.6-7

Question 51

What is GST and why was it considered the most significant indirect tax reform in India?

Answer 51

GST is an umbrella, multistage, destination-based indirect tax regime that subsumed various taxes like central excise, service tax, VAT, etc. Launched on 1 July 2017, it was hailed as the biggest indirect tax reform due to its comprehensive structure and envisaged impact. ## Footnote p.7

Question 52

What are the key positive outcomes of GST since its inception?

Answer 52

Key positive outcomes include: doubling of registered taxpayers to 1.4 crore by June 2023, gross monthly collection increase to 1.68 lakh crore in 2023-24, removal of cascading effect, technology-driven compliance, ease of doing business, elimination of tax multiplicity, movement towards 'One nation One tax', elimination of state check posts, behavioral change, and cooperative federalism via GST Council. ## Footnote p.7

Question 53

Cloze: The number of taxpayers registered under GST has more than doubled to ____ crore by June 2023.

Answer 53

1.4 crore ## Footnote p.7

Question 54

Cloze: Gross monthly GST collection increased to ____ lakh crore in 2023-24 from less than 1 lakh crore in 2017.

Answer 54

1.68 lakh crore ## Footnote p.7

Question 55

Cloze: GST was launched on ____ (date).

Answer 55

1 July 2017 ## Footnote p.7

Question 56

List all the key keywords and boxed terms related to GST performance and reforms.

Answer 56

Keywords: * GST, * indirect tax, * destination-based, * cascading effect, * GSTN, * e-filing, * faceless regime, * ease of doing business, * One nation One tax, * e-waybill, * cooperative federalism, * GST Council, * compensation, * slabs, * compliance cost, * GSTN gaps, * fake invoicing, * ITC scams, * GST Council secretariat, * digital infrastructure. ## Footnote p.7-8

Question 57

What are the main issues where GST has not met expectations? (Bullet points, keywords only)

Answer 57

- Loss of state autonomy - GST compensation delays - Federal tension, legal disputes - Multiple tax slabs, items outside GST - High compliance cost for small businesses - Gaps in GSTN, fraudulent practices - High rates incentivizing evasion ## Footnote p.7

Question 58

What are the main reforms suggested to improve GST performance? (Bullet points, keywords only)

Answer 58

- Independent GST Council secretariat - Reduce tax slabs - Bring more items under GST - Enhance digital infrastructure and services ## Footnote p.8

Question 59

What is the way forward for GST in India? (Bullet points, keywords only)

Answer 59

- Strengthen cooperative federalism - Simplify tax structure - Improve compliance and digital systems - Address state concerns and compensation ## Footnote p.8

Question 60

List 4-5 value addition points that provide an edge in understanding GST's performance and reforms.

Answer 60

- Doubling of taxpayer base - Technology-driven compliance - Cooperative federalism model - Persistent federal tensions - Need for simplification and digital upgrades ## Footnote

Question 61

What is the care economy and how does it differ from the monetized economy?

Answer 61

The care economy includes activities addressing the physical, psychological, and emotional needs of family members, often invisible, undervalued, and unpaid. The monetized economy refers to revenue-generating activities involving market exchange and aiming for economic growth. ## Footnote p.8

Question 62

Provide a table differentiating between the care economy and the monetized economy.

Answer 62

Care Economy: Usually invisible, undervalued, and unpaid (e.g., unpaid child care), involves cooking, washing, caregiving, etc., aims to strengthen social/emotional bonding, historically received little attention, women are major participants (76.2% unpaid care work per ILO), positive externalities (e.g., elder care). Monetized Economy: Involves exchange at market rates, involves industries, finance, technology, retail, aims for economic growth, per capita income, receives adequate attention due to revenue, women are minor participants (23.5% FLPR per ILO), may have negative externalities (e.g., inequality).

Question 63

How can monetization of the care economy lead to women's empowerment?

Answer 63

Monetization can lead to recognition and visibility of women's work, professionalization with social security, reduced time poverty for working women, address global care supply mismatch, reduce job stereotyping, increase female labor force participation, financial independence, and advance SDG 5. It may also shift gender roles and address care deficits in families. ## Footnote p.8

Question 64

What are the challenges of monetizing the care economy?

Answer 64

Reinforces gender stereotyping, formalizes dual burdens, affordability and accessibility issues, ethical concerns of monetizing relationships. ## Footnote p.8

Question 65

What is the ILO's 5R framework for increasing women's participation in the care economy?

Answer 65

The ILO's 5R framework includes: * recognition, * reduction, * redistribution, * rewarding, and * representation. ## Footnote p.9

Question 66

List all the key keywords and boxed terms related to care economy, monetized economy, and women's empowerment.

Answer 66

Keywords: * care economy, * monetized economy, * unpaid care work, * ILO, * gender equality, * SDG 5, * time poverty, * pink collar jobs, * female labor force participation, * financial independence, * 5R framework, . ## Footnote p.8-9

Question 67

What is the way forward for increasing women's participation in all sectors of the economy?

Answer 67

* Increase participation in all sectors, * apply ILO's Decent Work Agenda, * focus on 5R framework, * address care and formal sector barriers. ## Footnote p.9

Question 68

List 4-5 value addition points that provide an edge in understanding care economy and women's empowerment.

Answer 68

* Recognizes unpaid care work as a barrier, * monetization can empower women, * professionalization brings social security, * 5R framework as a policy guide, * links to SDG 5 and gender equality.

Question 69

What are the main reasons for low direct tax compliance in India?

Answer 69

Main reasons include low tax morale due to poor governance, lack of accountability, mild punishment, high cash transactions in the informal economy, prevalence of black money, untraced transactions (hawala), weaknesses in tax laws (exemptions, complexity, weak dispute resolution), tax avoidance by MNCs (BEPS), lack of administrative expertise/resources, and collusive corruption.

Question 70

Cloze: Out of 7.4 crore people who filed income tax returns in 2022-23, only ____ crore or ____% of the adult population actually paid income tax.

Answer 70

2.24 crore; 2.2%

Question 71

What are the main solutions to improve direct tax collection in India? (Bullet points, keywords only)

Answer 71

* Rationalize tax structure (optimum taxes/rates, low concessions) * Judicial reforms * Improve tax administration with technology (AI, Big data) * Reduce disputes, track evasion * Tax rich farmers' agri income * New models: equalization levy, digital tax, global minimum tax

Question 72

What is the way forward for widening the tax base in India? (Bullet points, keywords only)

Answer 72

* Increase female labor force participation * Promote formalization of the economy * Expand tax base in the long run

Question 73

List all the key keywords and boxed terms related to direct tax compliance and collection in India.

Answer 73

Keywords: * direct tax, * income tax, * progressive tax, * tax compliance, * tax morale, * informal economy, * black money, * hawala, * exemptions, * BEPS, * tax administration, * AI, * Big data, * equalization levy, * digital tax, * global minimum tax, * female labor force participation, * formalization.

Question 74

List 4-5 value addition points that provide an edge in understanding direct tax compliance and collection in India.

Answer 74

* Highlights global comparison of tax base * Emphasizes technology in tax administration * Recognizes informal sector's impact * Suggests new tax models (digital, global) * Links gender and formalization to tax base

Question 75

What is demographic dividend?

Answer 75

Demographic dividend refers to the economic growth potential from a high share of the working-age population.

Question 76

What are the twin challenges India faces in realizing demographic dividend?

Answer 76

India faces the twin challenges of unemployment (insufficient jobs) and unemployability (workforce lacking required skills).

Question 77

List the challenges of unemployment in India.

Answer 77

1. Wastage/underutilization of demographic dividend; jobless growth (13.4% graduate unemployment 2022-23) 2. Overburdened agriculture (disguised unemployment), underemployment, informalization, poverty 3. Low FLPR (~20%), gender divide in STEM and employment

Question 78

List the issues of unemployability in India.

Answer 78

1. Mismatch between industry demands and educational skills (only 51% graduates employable) 2. Technological change, digital skills gap, language barriers 3. Less emphasis on vocational skills, societal norms, 'craze' for government jobs, poverty of aspiration

Question 79

What are the main solutions to address unemployment and unemployability in India?

Answer 79

* Industry-academia linkage * Market-relevant courses (AI, data analytics) * Vocational training, skilling, reskilling (NEP 2020, PMKVY, PM-DAKSH) * Promote entrepreneurship, startups (Startup India, AIM) * Self-employment (Mudra Yojna, PMEGP) * MSME capacity building * Boost manufacturing (Make in India) * Focus on labor-intensive industries * Create non-farm jobs * Increase FLPR, women in STEM (Vigyan Jyoti, STEP)

Question 80

What is the way forward for realizing India's demographic dividend?

Answer 80

* Collaborative approach * Address both unemployment and unemployability * Enable full demographic dividend potential

Question 81

List value addition points for understanding India's demographic dividend and its challenges.

Answer 81

* Recognizes intertwined nature of unemployment and unemployability * Emphasizes industry-academia linkages * Highlights gender and skill gaps * Connects policy to demographic dividend realization * Focuses on collaborative solutions

Question 82

What is Gross Domestic Product (GDP)?

Answer 82

GDP is the aggregate final value of goods and services produced within the territory of an economy in a financial year. It is the primary yardstick to gauge the growth of a country. ## Footnote [page 2]

Question 83

What major change was made to the base year for GDP calculation in 2015?

Answer 83

The base year for GDP calculation was updated to 2011-12, capturing changes in the economy's structure, composition, and consumption patterns, making estimates more accurate and reflective of current realities. ## Footnote [page 2]

Question 84

How did the data sources and statistical techniques improve in the 2015 GDP methodology revision?

Answer 84

The new methodology uses updated data sources and improved statistical techniques, such as data from MCA-21 (companies registered with the Ministry of Corporate Affairs), and estimates more indicators like consumption and enterprise performance. ## Footnote [page 2]

Question 85

Cloze: Prior to 2015, India’s GDP was estimated using ____ cost, which didn’t fully account for indirect taxes and subsidies. The new methodology shifted to ____ prices, aligning with global practices.

Answer 85

factor; market ## Footnote [page 2]

Question 86

What is the significance of including Gross Value Added (GVA) at basic prices in the new GDP methodology?

Answer 86

Including GVA at basic prices for each sector (includes taxes on products but excludes subsidies) allows for a more detailed analysis of sectoral contributions to the economy and helps policymakers formulate sector-specific policies. ## Footnote [page 2]

Question 87

What was the impact of expanding the coverage of economic activities in the new GDP methodology?

Answer 87

The expanded coverage included previously underrepresented or excluded activities (e.g., financial institutions, regulatory bodies, local bodies), providing a more holistic view of economic activity in India. ## Footnote [page 2]

Question 88

How does the new GDP methodology align with international standards?

Answer 88

The changes align with United Nations guidelines in the System of National Accounts-2008 (SNA-2008), making it easier to compare India’s economic performance with other countries. ## Footnote [page 2]

Question 89

List all the key keywords and boxed terms related to the 2015 GDP methodology changes.

Answer 89

Keywords: * GDP, * base year, * 2011-12, * MCA-21, * market prices, * factor cost, * GVA, * sectoral analysis, * expanded coverage, * SNA-2008, * international standards, * policy formulation, * economic performance. ## Footnote [page 2]

Question 90

What are the main advantages of the 2015 changes in GDP computation methodology?

Answer 90

- More accurate and comprehensive estimates - Reflects current economic realities - Sector-wise breakdown - International comparability - Better data for policy and investment decisions ## Footnote [page 2]

Question 91

List 4-5 value addition points that provide an edge in understanding the 2015 GDP methodology changes.

Answer 91

- Updated base year for relevance - Use of robust, modern data sources - Shift to market prices for global alignment - Sectoral GVA for targeted policy - Broader economic activity coverage ## Footnote [page 2]