INDIA’S GDP GROWTH (Syllabus: GS Paper 3 – Economy)

Context: The recently published issue of PMI by S&P Global Market Intelligence predicts that India, the world's fifth largest economy, is poised to surpass Japan and become the third-largest economy with a GDP of USD 7.3 trillion by 2030.

Key Points

• India’s gross domestic product (GDP) is expected to grow 6.2-6.3 per cent in the fiscal year ending in March 2024, being the fastest-growing major economy this fiscal year.
• Asia’s third-largest economy grew by a stellar 7.8 per cent in the April-June quarter.
• India’s nominal GDP measured in USD terms is forecast to rise from USD 3.5 trillion in 2022 to USD 7.3 trillion by 2030. 
• This rapid pace of economic expansion would result in the size of the Indian GDP exceeding Japanese GDP by 2030, making India the second largest economy in the Asia-Pacific region.

Gross Domestic Product (GDP)

• The GDP is the total market value of all final goods and services in an economy.
• Country performance can be evaluated by comparing GDP figures from one year to another and by comparing them to other nations.
• GDP growth can stem from increased production, rising prices of goods and services, or a combination of both.
• Growth of GDP: It can be either due to increase in actual production or due to increase in prices of goods and services or combination of both the above two factors.
• Nominal GDP: It is the value of GDP at the current prevailing prices.
• Real GDP: It is the value of GDP at some constant set of prices.