
New Delhi21 minutes ago
- Copy link
The World Bank has maintained the rate of Economic Development (GDP) of India for FY 2025-26 (FY26) on Tuesday (June 10). According to the World Bank, the Indian economy will grow at a rate of 6.3% in FY26, compared to 6.5% last year. In April, the World Bank reduced India’s development estimate for 2025–26 to 6.3% of January’s forecast of 6.7% of January.
According to PTI, the World Bank has also said that India will remain the fastest growing major global economy. At the same time, about the possibility of the world’s economy, it is said that due to growing trade stress and policy uncertainty, GDP is expected to decline this year, which will be the fastest since 2008. The global growth rate is estimated to be 2.3% in 2025.
The condition of GDP for the last 5 years
- 2020: -5.8% (decline due to Kovid-19 epidemic)
- 2021: 9.7% (Indication of Strong Rebound after epidemic)
- 2022: 7.0% (Standing Development)
- 2023: 8.2% (Economic reforms continue)
- 2024: 6.5% (projected growth decrease, still strong growth)
What is GDP?
GDP is used to track economy health. It shows the value of all the goods and service created within a fixed time within the country. It also includes foreign companies that produce by staying inside the country’s border.
There are two types of GDP
There are two types of GDP. Real GDP and Nominal GDP. In real GDP, the calculation of goods and service values is performed at the value or stable price of the base year. Currently, the base year is 2011-12 for calculating GDP. At the same time, the calculation of nominal GDP is done at the current price.
How GDP is calculated?
A formula is used to calculate the GDP. GDP = c+g+i+NX, here C means private conjpction, G means government spending, I mean investment and NX means net export.
Who is responsible for GDP’s grip?
There are four important engines to reduce or increase GDP. The first is, you and us. The more you spend, it contributes to our economy. The second is the business growth of the private sector. It contributes 32% to GDP. The third is government expenditure.
This means how much the government is spending in producing goods and services. It contributes 11% to GDP. And the fourth is, net demand. For this, India’s total exports are reduced by total imports, as India has more imports than exports, so its impact is negative on GPD.