Mathematics · Macroeconomic Calculations
A regional economy is divided into two primary sectors: Sector X (Capital-Intensive Manufacturing) and Sector Y (Labor-Intensive Services). The Gross Fixed Capital Formation (GFCF) allocated to these sectors in FY 2025-26 is INR 1,000 Crore and INR 500 Crore, respectively. If the Incremental Capital Output Ratio (ICOR) for Sector X is 5.0 and for Sector Y is 3.0, what is the resulting total Gross Value Added (GVA) increment (in INR Crore) for the economy?
- 1INR 366.67 Crore✓
- 2INR 450.00 Crore
- 3INR 333.33 Crore
- 4INR 200.00 Crore
Correct answer
INR 366.67 Crore
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