Real GDP growth and nominal GDP

Statement 1 is incorrect because India's real GDP growth rate has not steadily increased over the last decade (2005-2015). India experienced the global financial crisis in 2008-09, which caused growth to decelerate, and growth rates fluctuated significantly rather than showing a steady increase. Statement 2 is correct because nominal GDP at market prices (measured in current rupees) has steadily increased due to both economic growth and inflation, regardless of fluctuations in the real growth rate. The nominal value inherently rises due to price increases and economic expansion. > Key Insight: Nominal GDP (market prices in rupees) always rises due to inflation and growth combined, while real GDP growth (at constant prices) reflects actual economic expansion and can fluctuate with economic cycles. Answer: (b).