CAT 2000 — DILR Question 19

Let x be the Foreign Equity inflow of India.

∴ China’s Foreign Equity inflow is 10x.

∵ FEI in India in 1998 = 0.72

$\therefore 0.72=\frac{x}{GDP of India}$

∴ GDP of India = $\frac{x}{0.72}$

FEI in China in 1998 was 4.8.

∴ 4.8 = $\frac{10x}{GDP of China}$

∴ GDP of China = $\frac{10x}{4.8}$

$\therefore \frac{GDP of China}{GDP of India}=\frac{\left({\displaystyle \frac{10x}{4.8}}\right)}{\left({\displaystyle \frac{x}{0.72}}\right)}$

$\therefore \frac{GDP of China}{GDP of India}=1.5$

∴ China's GDP is 50% higher than that of India.

Hence, option (c).