i. Do you think the actual level of output in the Indian economy is less than its potential level?
ii. Does it mean that the level of our PPC could be higher than what it is now?

1) Yes, the actual level of output produced by Indian economy is less than its potential level. This is due to the reason that Indian economy is facing huge unemployment and various other factors that are serving as a hindrance for Indian economy to achieve its potential level of output.

2) No, that does not been our PPC could be higher than what it is now. It means that economy is operating inside the PPC because resources of the economy are underutilised. If the resources will get fully utilised, then it will shift the point of operation of economy on the PPC. But PPC itself would not change.