GDP The Government of India has estimated India’s Gross Domestic Product (GDP) growth at 6.5% for the financial year 2024-25. This estimate has come down due to a decrease in gross fixed capital formation and private consumption during the September quarter.
Earlier, the International Monetary Fund (IMF) maintained its estimate at 7%. At the same time, the GDP estimate for the financial year 2025-26 has also been maintained at 6.5%. On October 9, the RBI maintained India’s GDP growth forecast for FY25 at 7.2%.
At the same time, in August, the World Bank raised India’s GDP growth forecast for the financial year 2024-25 from 6.6% to 7%. Then the World Bank said that in the last financial year 2024, the Indian economy grew at a pace of 8.2%, which was the fastest.
GDP growth fell to 5.4% between July and September
India’s GDP growth fell to 5.4% in the July-September quarter of FY 2025. This was the slowest growth in seven quarters. GDP growth remained slow due to the poor performance of the manufacturing sector. The National Statistical Office released this data today on 29 November.
Earlier, the growth was 4.3% in the third quarter of 2023. At the same time, it was 8.1% in the same quarter a year ago (Q2FY24). In the previous quarter i.e., Q1FY25, it was 6.7%. India’s GVA grew at the rate of 5.6% in the July-September quarter. GVA growth was 7.7% in the same quarter a year ago. At the same time, GVA growth was 6.8% in the previous quarter.
India is still the fastest-growing economy among major countries.
Despite slow GDP growth, India is still the fastest-growing economy among major economies. China’s GDP growth was 4.6% in the July-September quarter this year. Japan’s GDP has grown at a rate of 0.9%.
What is GDP?
GDP is one of the most common indicators used to track the health of the economy. GDP represents the value of all goods and services produced within a country in a specific time period. It also includes foreign companies that produce within the country’s borders.
There are two types of GDP
GDP is of two types. Real GDP and Nominal GDP. In real GDP, the value of goods and services is calculated on the base year’s value or stable price. Currently, the base year for calculating GDP is 2011-12. Whereas nominal GDP is calculated at current prices.
How is GDP calculated?
A formula is used to calculate GDP. GDP=C+G+I+NX, here C means private consumption, G means government spending, I means investment and NX means net export.
Who is responsible for the increase or decrease in GDP?
There are four important engines for increasing or decreasing GDP. First is you and me. Whatever you spend contributes to our economy. Second is the business growth of the private sector. It contributes 32% to GDP. Third is government expenditure.
It means how much the government is spending to produce goods and services. It contributes 11% to GDP. And the fourth is net demand. For this, India’s total exports are subtracted from the total imports, because in India the imports are more than the exports, hence its impact on GDP is negative.
