The World Bank has increased India’s economic growth (GDP growth) forecast for 2024 by 1.2% to 7.5%. According to the World Bank, India’s output growth may also reach 7.5% in the financial year 2024 due to the boom in service and industrial sectors. During this period, due to output growth and consolidation, there will be a reduction in fiscal deficit and debt on the government. According to the report, the growth of economic activity in the third quarter (October-December) of 2023 was 8.3%. This is due to the continuous increase in investment and government consumption. The strong performance from recent survey data is likely to continue. Inflation is in the target range of RBI According to the World Bank report, after the rise in mid-2023, inflation has remained in the target range of RBI of 2%-6%. However, food price inflation has increased, one reason for which is the weak crop due to El Nino. Earlier in January, the World Bank had maintained India’s gross domestic product (GDP) growth estimate at 6.4% for the financial year 2024-25. The bank had released this estimate in its half-yearly ‘Global Economic Report’. GDP growth is estimated to be 6.5% in the financial year 2025-26. The World Bank has also estimated the GDP growth for the financial year 2025-26 at 6.5%. The World Bank has also said that India will grow at the fastest pace among the world’s largest economies. This projection of the World Bank is mainly influenced by strong growth in domestic demand, spending on public infrastructure and strong private sector credit growth. However, the World Bank has also said that private consumption growth may remain low due to high food inflation and lack of pent-up demand. According to Fitch, Indian economy will grow by 7% in FY25. Global rating agency Fitch has increased India’s economic growth estimate for the financial year 2024-25 (FY25) from 6.5% to 7%. Fitch said India’s economic growth will be supported by strong domestic demand and increased investment. The rating agency has also predicted retail inflation to fall to 4% by the end of 2024. Fitch expects the Reserve Bank of India (RBI) to cut the repo rate by 0.5% between July and December. This change in Fitch’s forecast comes almost two weeks after official data from the National Statistical Office (NSO) showed that the country’s GDP grew by 8.4% in the October-December period. Which has increased due to better performance of manufacturing and mining sectors. 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. In this, the foreign companies which produce within the country’s borders are also included. There are two types of GDP. There are two types of GDP. Real GDP and Nominal GDP. In real GDP, the value of goods and services is calculated at the base year’s value or stable price. At present the base year for calculating GDP is 2011-12. Whereas nominal GDP is calculated at current price. 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 fluctuations in GDP? There are four important engines for increasing or decreasing GDP. The first is you and me. Whatever you spend contributes to our economy. Second is private sector business growth. It contributes 32% to GDP. Third is government expenditure. This means how much the government is spending to produce goods and services. It contributes 11% to GDP. And fourth is, net demand. For this, India’s total exports are subtracted from total imports, because India has more imports than exports, hence its impact is negative on GPD. Also read this news… Fitch increased GDP growth estimate to 7% in FY25: Earlier the estimate was 6.5%; Retail inflation is expected to reach 4% by the end of the year. Global rating agency Fitch has increased India’s economic growth estimate for fiscal year 2025 from 6.5% to 7%. Fitch said India’s economic growth will be supported by strong domestic demand and increased investment. Click here to read the full news… Also read… IMF increased India’s GDP growth estimate by 0.20%: 6.5% for the financial year 2024-25, this is less than the Finance Ministry’s estimate from the interim budget Earlier, the International Monetary Fund (IMF) has increased India’s GDP growth forecast by 0.20% to 6.5% for the financial year 2024-25 and financial year 2025-26. Whereas the GDP estimate for the financial year 2023-24 is 6.7%. Click here to read the full news…
