As per the advance estimates, per capita income of Rajasthan at constant prices (2011 – 12) for the year 2020 – 21 is –
- (1)₹ 79,722
- (2)₹ 97,227
- (3)₹ 72,297
- (4)₹ 75,527
Answer
Why
Correct — option (3), ₹ 72,297.
Rajasthan's Economic Review 2020-21, in its chapter Overview of Macro Economic Trends, says: as per the advance estimates, the per capita income at constant (2011-12) prices for 2020-21 is estimated to be ₹72,297, compared with ₹78,390 for 2019-20.
That is a decline of 7.77 per cent over 2019-20. Table 1.10 of the Review lists the same figure, 72297, against 2020-21 (AE).
The stem's three conditions all match this row: advance estimates, constant (2011-12) prices, and the year 2020-21. The figure is ₹ 72,297.
The idea to remember: Rajasthan's per capita income, 2020-21 advance estimate: ₹72,297 at constant (2011-12) prices, ₹1,09,386 at current prices.
Why the others are wrong
- (1)₹ 79,722 — This uses the same five digits as 72,297 in a different order. It is not in the Review's table.
It would also mean per capita income rose above 2019-20's ₹78,390, while the Review records a 7.77 per cent decline in 2020-21.
- (2)₹ 97,227 — This too rearranges the digits of 72,297 and does not appear in Table 1.10.
At constant prices the Review's highest Rajasthan figure in the table is ₹78,390 for 2019-20. At current prices, the 2020-21 estimate is ₹1,09,386.
- (4)₹ 75,527 — This is close to, but not the same as, the Review's figure for 2018-19, ₹75,555, a different year.
For 2020-21 (advance estimates) at constant prices the Review gives ₹72,297.
Concept
Per capita income, in the Economic Review's words, “is derived by dividing the Net State Domestic product by the mid year's total population of the State.”
At constant (2011-12) prices, every year's output is valued at 2011-12 prices, so the figure tracks real change. At current prices, it includes price changes.
An advance estimate is the first estimate for a year and is revised later. The Review marks 2018-19 as Revised Estimate-II, 2019-20 as Revised Estimate-I and 2020-21 as Advance Estimates.
RPSC's 2021 syllabus lists “Macro overview of Economy.” under the Economy of Rajasthan.
The Economic Review 2020-21 expected Gross State Domestic Product to decline by 6.61 per cent in 2020-21 at constant (2011-12) prices. Within Gross State Value Added, it expected agriculture to grow by 3.45 per cent and industry and services to decline by 7.50 and 10.95 per cent.
For All India, the same table gives per capita income at constant prices of ₹86,456 for 2020-21 (AE), a decline of 8.95 per cent.
Key facts
- Economic Review 2020-21: Rajasthan's per capita income at constant (2011-12) prices, 2020-21 (AE), ₹72,297.
- The 2019-20 figure is ₹78,390, so 2020-21 shows a decline of 7.77 per cent.
- At current prices, 2020-21 (AE) per capita income is ₹1,09,386 against ₹1,15,492 in 2019-20, a decline of 5.29 per cent.
- All India per capita income at constant prices, 2020-21 (AE): ₹86,456, a decline of 8.95 per cent.
- Per capita income = Net State Domestic Product ÷ mid-year total population of the State.
Source: Rajasthan Economic Review 2020-21, Table 1.10. The 2020-21 figure is an advance estimate.
Study next
Common traps
- Mixing current and constant prices: ₹1,09,386 is 2020-21 at current prices; ₹72,297 is at constant (2011-12) prices.
- Taking a neighbouring year: ₹78,390 is 2019-20 and ₹75,555 is 2018-19.
- Trusting a familiar-looking number: two options rearrange the digits of 72,297.
A question can ask a state's per capita income for a year, specifying the price base and estimate type, with digit-swapped figures as options.
A question can also ask the growth or decline of per capita income over the previous year.
Related PYQs
UnlockIAS will link similar questions from RAS Pre 2018 and 2016 here once those papers are published on this site.
Practice
- practice — not a real PYQ
According to Rajasthan's Economic Review 2020-21, the per capita income of Rajasthan at current prices for 2020-21 (advance estimates) is
- (a)₹1,15,492
- (b)₹1,09,386
- (c)₹86,456
- (d)₹72,297
Answer(2) — The Review gives ₹1,09,386 at current prices. Option (1) is 2019-20 at current prices, option (3) is All India at constant prices for 2020-21, and option (4) is Rajasthan at constant prices. - practice — not a real PYQ
As per Rajasthan's Economic Review 2020-21, the change in the State's per capita income at constant (2011-12) prices in 2020-21 over 2019-20 is
- (a)+3.75 per cent
- (b)−7.77 per cent
- (c)−5.29 per cent
- (d)−8.95 per cent
Answer(2) — Table 1.10 shows −7.77 per cent. Option (1) is Rajasthan's change in 2019-20, option (3) is the change at current prices, and option (4) is the All India change at constant prices.