India’s GDP may remain 6.6% in FY2024-25: World Bank said- India will remain the fastest growing country among the world’s major economies

The World Bank has maintained India’s GDP forecast for FY2024-25 at 6.6%. Earlier in April, the World Bank had also estimated India’s GDP for FY25 at 6.6%. The World Bank said that India will remain the fastest growing country among the world’s largest economies. However, India’s expansion is expected to slow down. The World Bank said that after high growth in FY 2023-24, stable growth of an average 6.7% per annum is projected for the three financial years starting from FY 2024-25. India’s economy will grow at 6.7% in FY 26 The World Bank has projected India’s economy to grow at 6.7% in FY 26 and 6.8% in FY 27. At the same time, the National Statistical Office (NSO) has projected GDP to grow at 8.2% in FY 24. RBI raised GDP forecast, maintained inflation forecast 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 the 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. 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. Nominal GDP is calculated on the 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 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 fourth is net demand. For this, India’s total exports are subtracted from total imports, because in India imports are more than exports, so its impact on GDP is negative.

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