With reference to India economy, consider the following statements:

1. The rate of growth of real Gross Domestic Product has steadily increased in the last decade.

2. The Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade.

Which of the statement given above is/are correct?

The correct option is 2 only.

Let us analyze both statements step-by-step to understand why only the second statement is correct in the context of the Indian economy over the last decade (roughly 2011-2012 to 2020-2021):

Analysis of Statement 1:
Statement 1 states that the rate of growth of real Gross Domestic Product (GDP) has steadily increased in the last decade.
Real GDP growth rate is the percentage change in GDP adjusted for inflation compared to the previous year. For growth to have "steadily increased," the percentage growth rate must rise year-on-year continuously without any decline.
However, India's real GDP growth rate has fluctuated. For instance, the growth rate was approximately 6.39% in 2013, rose to around 7.41% in 2014, reached about 8.26% in 2016, and then experienced a downward trend falling to 3.74% in 2019, followed by a contraction due to the COVID-19 pandemic. Since the rate of growth has gone both up and down, it has not steadily increased. Therefore, Statement 1 is incorrect.

Analysis of Statement 2:
Statement 2 states that the Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade.
GDP at market prices (nominal GDP) is the total value of all finished goods and services produced within a country's borders valued at current market prices.
Even during years when the real GDP growth rate declined or slowed down, the absolute size of India's GDP at market prices (in nominal terms, measured in rupees) continued to grow year-on-year due to the combined effect of positive real growth and inflation. Except for the unprecedented economic disruption caused by the pandemic in 2020-21, the nominal GDP of India showed a steady and consistent increase throughout the decade. Therefore, Statement 2 is correct.

Consequently, only Statement 2 is correct.