Which of the following statements best explains the divergence between Bihar's Gross State Domestic Product (GSDP) and Net State Domestic Product (NSDP) trends over the last few years?

Options:

  • A: The divergence is primarily due to high levels of inter-state migration and remittance inflows.
  • B: The divergence is caused by the exclusion of the informal sector from NSDP calculations.
  • C: The divergence is driven by the Consumption of Fixed Capital (CFC), reflecting depreciation of assets across infrastructure and industrial sectors.
  • D: The divergence is a result of high direct tax collections by the state government.

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