IMF raised India’s GDP growth forecast by 0.20%
Before the budget, the International Monetary Fund (IMF) has increased India’s GDP growth forecast for the financial year 2024-25 by 0.20% to 7%. At the same time, the GDP estimate for the financial year 2025-26 is 6.5%. Earlier in April, the IMF had given the same estimate for FY26.
The IMF said in its World Economic Outlook (WEO) report that the growth forecast in India has been revised to 7.0% for this year. This has been done due to better prospects for private consumption.
RBI had estimated GDP growth to be 7.2%
Last month, RBI had increased India’s GDP growth forecast for FY25 to 7.2%. At the same time, last month, the World Bank maintained India’s GDP forecast for FY2024-25 at 6.6%.
World Bank had estimated GDP growth at 6.6%
Earlier in April, the World Bank had also estimated India’s GDP growth for FY25 at 6.6%. At the same time, the National Statistical Office (NSO) has estimated India’s GDP to grow at a rate of 8.2% in FY24.
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 is of two types. Real GDP and Nominal GDP. In real GDP, the value of goods and services is calculated on the value of the base year or stable price. Currently, the base year for calculating GDP is 2011-12. Whereas nominal GDP is calculated at current prices.
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.
