CA Foundation · Business Economics · Indian Economy
The primary sector's GVA grows from ₹40 lakh crore to ₹44 lakh crore, while total GVA grows from ₹200 lakh crore to ₹250 lakh crore. What happens to the primary sector's share in total GVA?
The primary sector's share falls from 20% to 17.6%. Its GVA grew only 10 percent while total GVA grew 25 percent, so 44 divided by 250 gives 17.6 percent, lower than the original 40 divided by 200, which is 20 percent.
- AIt falls from 20% to 17.6%Correct
- BIt rises from 20% to 22%
- CIt falls from 20% to 18.5%
- DIt remains at 20%
Explanation
Initial share = 40/200 = 20%. New share = 44/250 = 17.6%. Although primary GVA rose by 10%, total GVA rose by 25%, so the share falls. The 22% option wrongly treats the 10% growth as a rise in share.
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