India’s GDP growth may be 7% in FY-2024: Asian Development Bank increased its estimate by 0.3%, the reason for this is increase in investment and demand.

India’s GDP growth may be 7% in FY-2024: Asian Development Bank increased its estimate by 0.3%, the reason for this is increase in investment and demand.

The Asian Development Bank (ADB) has raised India’s GDP forecast for the current financial year (2024-25) from 6.7% to 7%. ADB expects an increase in consumer demand along with investment in the public and private sector, due to which it has increased the growth projection. That’s why Asian Development Bank increased its estimate… World Bank said- Indian economy will grow by 6.6% in FY-2025. Recently, World Bank has increased the GDP estimate for FY25 by 0.2% to 6.6%. At the same time, the World Bank has increased India’s GDP estimate for FY24 by 1.2% to 7.5%. The World Bank expects growth in the service and industrial sectors, due to which it has increased its estimates. RBI expects 7% GDP growth in FY25. The Reserve Bank had released the GDP and inflation estimates after the Monetary Policy Committee meeting 2 months ago in February. 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.

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