GDP Growth in 2024-25

GDP Growth in 2024-25: Recently, provisional estimates revealed that India’s economy grew by 6.5% in FY 2024–25, marking the slowest full-year GDP growth since the pandemic-affected year of 2020–21.

o Although the fourth quarter showed signs of recovery, it wasn’t sufficient to push the overall annual growth rate beyond 6.5%.

• About Gross Domestic Product (GDP): Measures the total value of goods and services produced within a country over a specific period, usually a year. It reflects economic health, growth, and development.

o Types of GDP: Nominal GDP: Current market prices without inflation adjustment; useful for same-year comparisons.

ü Real GDP: Inflation-adjusted, allowing comparison across years by reflecting actual output changes.

ü GDP Per Capita: Average economic output per person, indicating living standards and productivity.

ü GDP based on Purchasing Power Parity (PPP): Adjusted for price differences across countries, enabling international comparisons.

o GDP Growth Rate: Measures the rate of economic expansion or contraction, influencing monetary policy decisions.

o Calculation Methods: Income Method: Sum of incomes earned by labor and capital, adjusted for taxes and subsidies.

ü Expenditure Method: Total spending on Consumption, Investment, Government, and Net Exports (C + I + G + (X – IM)).

ü Production (Output) Method: Market value of all goods and services produced, adjusted for taxes and subsidies.