The table given below shows the GDP growth rate at 2011-12 prices. You have studied about the techniques of presentation of data in your Statistics for Economics course. Draw a time series line graph based on the data given in the table and interpret the same.
| Year | GDP Growth Rate (%) |
|---|---|
| 2012-13 | 5.5 |
| 2013-14 | 6.4 |
| 2014-15 | 7.5 |
| 2015-16 | 8.0 |
| 2016-17 | 8.3 |
| 2017-18 | 6.8 |
| 2018-19 | 6.5 |
| 2019-20 | 3.9 |
| 2020-21 | 5.8 |
| 2021-22 | 9.7 |
To present the data, a Time Series Line Graph is constructed with 'Year' on the X-axis and 'GDP Growth Rate (%)' on the Y-axis. The scale for the Y-axis is chosen appropriately to accommodate the range of values (from 3.9% to 9.7%). Points are plotted for each year corresponding to the given growth rates: (2012-13, 5.5), (2013-14, 6.4), (2014-15, 7.5), (2015-16, 8.0), (2016-17, 8.3), (2017-18, 6.8), (2018-19, 6.5), (2019-20, 3.9), (2020-21, 5.8), and (2021-22, 9.7). These points are then connected by straight lines to visualize the trend.
The interpretation of the graph reveals distinct fluctuations in the Indian economy's growth over the period. From 2012-13 to 2016-17, the graph shows a consistent upward trend, with the GDP growth rate rising from 5.5% to a peak of 8.3%. This period indicates a phase of robust economic acceleration.
However, post-2016-17, the graph exhibits a downward trend. The growth rate declined from 8.3% to a low of 3.9% in 2019-20. This sharp dip represents a significant slowdown in the economy during these years.
Finally, the graph indicates a strong recovery in the last two years. The growth rate improved to 5.8% in 2020-21 and further surged to 9.7% in 2021-22. This rebound marks the highest growth rate in the entire dataset, highlighting the economy's resilience and volatility over the decade.
Explanation
This question tests the student's ability to present statistical data graphically and interpret economic trends. The answer follows the standard method for drawing a time series line graph (X-axis for time, Y-axis for the variable). The interpretation is based strictly on the data provided in the table, identifying the rise, the peak, the subsequent fall, and the final recovery. The student is expected to use specific data points to substantiate their interpretation of the trends.
Solution Steps
Step 1: Draw the axes. Place the 'Year' on the X-axis (independent variable) and 'GDP Growth Rate (%)' on the Y-axis (dependent variable).
Step 2: Select an appropriate scale. For the Y-axis, a scale of 1 cm = 1% or 2% can be used to fit the range between 3.9% and 9.7%.
Step 3: Plot the coordinates. Mark points for each year's growth rate: (2012-13, 5.5), (2013-14, 6.4), (2014-15, 7.5), (2015-16, 8.0), (2016-17, 8.3), (2017-18, 6.8), (2018-19, 6.5), (2019-20, 3.9), (2020-21, 5.8), (2021-22, 9.7).
Step 4: Join the points. Connect the plotted points with straight lines to complete the graph.
Step 5: Interpret the trend. Analyze the direction of the line—rising from 2012-17, falling from 2017-20, and rising again from 2020-22—and quote the specific values for the peak (8.3%), trough (3.9%), and final high (9.7%).