International Monetary Fund: The International Monetary Fund (IMF) has maintained India’s gross domestic product (GDP) growth forecast at 7% for the financial year 2024-25. At the same time, the GDP estimate for the financial year 2025-26 has also been maintained at 6.5%.
Earlier in July, IMF had increased India’s GDP growth estimate by 0.20% to 7% for the financial year 2024-25. Then the GDP estimate for the financial year 2025-26 was said to be 6.5%. At the same time, in April also the IMF had given the same estimate for FY 26.
RBI retains GDP growth forecast at 7.2%
On October 9, RBI retained India’s GDP growth forecast for FY25 at 7.2%. In August, the World Bank had increased India’s GDP growth estimate for the financial year 2024-25 from 6.6% to 7%. Then the World Bank had said that in the last financial year 2024, the Indian economy grew at the rate of 8.2%, which was the fastest.
International Monetary Fund: 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 a country in a given time period. This also includes foreign companies producing within the country’s borders.
There are two types of GDP
There are two types of GDP. Real GDP and nominal GDP. Real GDP calculates the value of goods and services at base year or constant prices. At present the base year for calculating GDP is 2011-12. Whereas, nominal GDP is calculated at current price.
How is GDP calculated?
A formula is used to calculate GDP. GDP=C+G+I+NX, where C means private consumption, G means government expenditure, I means investment and NX means net exports.