UPSC Prelims 2003 Q82: Indian Economy – Infrastructure & Industry
Consider the following statements:
1. In the last five years, Indian software exports have increased at a compound annual growth
rate of about 60%.
2. The software and service industry in India registered an overall growth of about 28% in rupee
terms during the year 2001 - 2002.
Which of these statements is/are correct?
- (a) Only 1
- (b) Only 2
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Answer: (c) Both 1 and 2
Explanation
Indian software industry growth
| Statement | Verdict |
|---|---|
| 1. Software exports grew at about 60% CAGR in the last five years | True as accepted for the period |
| 2. The software and service industry grew about 28% in rupee terms in 2001-02 | True |
Both statements are accepted as correct.
Answer: (c) Both 1 and 2.
Why each option is right or wrong
- (a) Incorrect. Statement 2 is also correct.
- (b) Incorrect. Statement 1 is also correct.
- (c) CORRECT. Both statements are correct.
- (d) Incorrect. Both statements are correct.
Key point
NASSCOM: software and services revenue grew about 28% in rupee terms in 2001-02.
Remember
India's software industry grew about 28% in rupee terms in 2001-02.
Common mistakes
- Quoting the dollar growth instead of the rupee growth.
- Mixing the five-year growth with the one-year growth.
- Forgetting that exports are most of the revenue.
Exam tip
Check whether growth is in dollar or rupee terms.
Sources
- NASSCOM — industry review 2001-02
- NASSCOM — Strategic Review 2002