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Per‑capita health expenditure in India rose from Rs 1,200 in 2010‑11 to Rs 1,800 in 2015‑16. If the health sector’s share in GDP increased to 6% in 2015‑16 and total GDP that year was Rs 150 lakh crore, what is the estimated monetary value of the health sector’s output in 2015‑16?

medium 2 marks Class 12 · Economics · Human Capital Formation in India
Answer
Rs 9 lakh crore

The correct answer is Rs 9 lakh crore — Thus, the health sector’s output is Rs 9 lakh crore.

Step-by-step solution

  1. Identify the share of health sector in GDP: 6% of total GDP.
  2. Convert the percentage to decimal: 6% = 0.06.
  3. Multiply total GDP (Rs 150 lakh crore) by 0.06: 150 × 0.06 = 9.
  4. Thus, the health sector’s output is Rs 9 lakh crore.
Common mistake: Using the per‑capita increase instead of the sector‑share percentage to compute output value

Concept tested: Contribution of health investment to GDP

Published · How this solution was prepared and checked

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