Consider the following statements regarding India's GDP calculation and the NSO's estimates:
1. The National Statistics Office (NSO) calculates Real GDP using current market prices to adjust for inflation.
2. The Second Advance Estimates for FY25 revised India's projected full-year real GDP growth upward to 6.5%.
Which of the following statements is/are correct?

Question

Accepted Answer

B) 2 only — Statement 1 is incorrect because Real GDP is calculated using constant base year prices (currently 2011-12 in India) to remove the effect of inflation, whereas Nominal GDP uses current market prices. Statement 2 is correct, as the NSO recently revised the FY25 real GDP growth projection upward from 6.4% to 6.5%.

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