Read the following statements carefully:
Statement 1: India, Pakistan and China have similar physical endowments, but totally different political systems.
Statement 2: Both India and Pakistan laid great emphasis on creating a large private sector.
Statement 1: This is true as India, Pakistan, and China share similar geographical features, such as fertile plains and river systems, but their political systems differ significantly.
Statement 2: This is false because: India initially emphasized a mixed economy with a significant public sector. Pakistan also prioritized state-led initiatives, rather than focusing on creating a large private sector.
For a hypothetical economy, assume the government increased infrastructural investment by ₹10,000 crore. 80% of additional income is consumed in the economy. Estimate the increase in income and the corresponding increase in consumption expenditure in the economy.