Rs 26 trillion of India's economy formalised in FY16-FY23, says SBI Report

Current Context: The State Bank of India (SBI) released a report that estimates India's economy has been formalizing over the past seven years.

• Here's a breakdown of the key points:
• Formalization: Rs 26 trillion of the Indian economy has become formal between financial years 2016-17 (FY16) and 2022-23 (FY23).
• Informal Economy Share: The share of the informal economy in India's total Gross Value Added (GVA) has declined from 25.9% in FY16 to 23.7% in FY23.
• Informal Sector Growth: Despite formalization, the informal sector has grown in absolute terms. The total informal GVA increased to Rs 58.4 trillion in FY23 from Rs 18.6 trillion in FY16. Agriculture is the biggest contributor within the informal sector, accounting for Rs 43 trillion in FY23.

Question:

1 As per latest SBI Report, How much of the Indian economy has become formal between FY16 and FY23?

• A) Rs 20 trillion
• B) Rs 22 trillion
• C) Rs 24 trillion
• D) Rs 26 trillion

Answer: D) Rs 26 trillion of the Indian economy has become formal between financial years 2016-17 (FY16) and 2022-23 (FY23).