Why did the mining and quarrying sector show real GVA growth of -2.4 per cent but nominal GVA growth of 22.3 per cent?
- A.Because mining output rose sharply in volume terms
- B.Because mineral prices, especially crude petroleum and natural gas, rose steeply
- C.Because the sector was moved out of the GDP series
- D.Because coal production was excluded from the estimates
Correct answer
Explanation
The correct answer is the steep rise in mineral prices. Constant-price estimates for mining are built from the Index of Industrial Production, which grew -3.8 per cent in April, -1.4 per cent in May and 1.6 per cent in June, broadly matching real GVA growth of -2.4 per cent. Nominal estimates are then derived by applying producer price indices, and those prices climbed sharply: crude petroleum and natural gas by 69.5 per cent in April, 72.2 per cent in May and 33.7 per cent in June, and mining of metal ores by 27.6, 25.2 and 23.5 per cent. That price surge, not any inconsistency in the data, explains the gap. Option A is wrong because volumes fell in two of the three months. Option C is wrong because mining remains part of the series. Option D is wrong because coal and lignite are covered, and in fact recorded negative price inflation in all three months.
Read the full article: Q1 2026-27 GDP Estimates Explained: Base Year and Deflators
Practice Questions
What is the base year of India's updated series of annual and quarterly GDP estimates?
- A.2004-05
- B.2011-12
- C.2022-23
- D.2024-25
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The backgrounder states that the updated series of annual and quarterly GDP estimates, released on 31 August 2026, takes 2022-23 as its base year.
Read the full explanation →Under double deflation, which two items are deflated separately to arrive at real Gross Value Added?
- A.Output and intermediate consumption
- B.Exports and imports
- C.Wages and profits
- D.Government spending and private consumption
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Double deflation is a production-side technique: gross output is deflated with one price index and intermediate consumption with another, and real Gross Value Added is what remains after subtracting the second from the first.
Read the full explanation →GDP at current prices for the first quarter of 2026-27 was estimated at:
- A.Rs 80.32 lakh crore
- B.Rs 86.05 lakh crore
- C.Rs 88.27 lakh crore
- D.Rs 94.60 lakh crore
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The release says the first quarter of 2026-27 should be compared with the earlier first-quarter figure from the same series, and in doing so it names the current-price estimate for the quarter.
Read the full explanation →What was the theme of the 14th India Chem 2026 held in Mumbai?
- A.Advantage Bharat: An Emerging Global Chemicals Hub
- B.Chemicals for a Viksit Bharat
- C.Green Chemistry, Green Growth
- D.Make in India, Mix in India
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The 14th edition of India Chem was organised in Mumbai from 22 to 24 October 2026 as a three-day event aimed at drawing investment and promoting sustainable growth in chemicals and petrochemicals.
Read the full explanation →Which of the following is NOT one of India's three operational Petroleum, Chemicals and Petrochemicals Investment Regions?
- A.Dahej in Gujarat
- B.Paradeep in Odisha
- C.Visakhapatnam-Kakinada in Andhra Pradesh
- D.Haldia in West Bengal
Show answer
India has three operational PCPIRs: Dahej in Gujarat, Visakhapatnam-Kakinada in Andhra Pradesh and Paradeep in Odisha. Haldia is not among them, so option D is the exception.
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