In recent years, which one among the following is the source of demand

In recent years, which one among the following is the source of demand in the Indian economy in descending order ?

Private Consumption, Government Consumption, Net Exports, Gross Fixed Capital Formation
Government Consumption, Private Consumption, Net Exports, Gross Fixed Capital Formation
Private Consumption, Gross Fixed Capital Formation, Government Consumption, Net Exports
Government Consumption, Private Consumption, Gross Fixed Capital Formation, Net Exports
This question was previously asked in
UPSC CAPF – 2024
The components of GDP by expenditure in descending order of magnitude in the Indian economy are typically:
1. Private Final Consumption Expenditure (PFCE or Private Consumption)
2. Gross Fixed Capital Formation (GFCF or Investment)
3. Government Final Consumption Expenditure (GFCE or Government Consumption)
4. Net Exports (Exports minus Imports)
Private Consumption (Household spending) is the largest component, followed by Investment, then Government spending, and finally, Net Exports which are often negative or relatively small. Option C lists these components in the typical descending order: Private Consumption, Gross Fixed Capital Formation, Government Consumption, Net Exports.
Private Consumption is the dominant driver of demand in the Indian economy, followed by Investment (Gross Fixed Capital Formation) and Government Consumption. Net Exports generally play a smaller, often negative, role.
GDP = PFCE + GFCE + GFCF + Changes in Stocks + Valuables + Net Exports (Exports – Imports). The question focuses on the primary sources of demand corresponding to PFCE, GFCE, GFCF, and Net Exports.
Exit mobile version