UN REPORT ON INDIA’S GDP (Syllabus: GS Paper 3 – Economy)

Context:  A United Nations report revised India’s gross domestic product (GDP) growth forecast for the 2024 calendar year to 6.2 per cent from its earlier estimate of 6.7 per cent.

Key Findings

• According to World Economic Situation and Prospects (WESP) report, Growth in India is projected to reach 6.2 per cent in 2024, slightly lower than the 6.3 per cent estimate for 2023, amid robust domestic demand and strong growth in the manufacturing and services sectors.
• The report said GDP in the larger South Asian region grew by an estimated 5.3 per cent in 2023 and is projected to increase by 5.2 per cent in 2024, driven by a robust expansion in India.
• The UN report said the assessment comes at a time India is positioning itself as an alternate investment destination to China.
• In 2022, FDI (foreign direct investment) flows to India rose by 10 per cent, making it the third largest host country for announced greenfield projects.

Gross Domestic Product (GDP)

• About: The GDP is the total market value of all final goods and services in an economy.
• 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.