REAL GDP GROWTH MAY HIT 8% THIS FISCAL YEAR, SIGNALS FINMIN
Why in the news?
The Finance Ministry suggests India’s real GDP may exceed NSO’s estimate, reaching 8%, citing ongoing economic momentum and optimistic growth projections.
source:TH
About the Inflation and Demand Outlook:
- Retail inflation remains within RBI’s target range of 2%-6%, with core inflation showing signs of easing.
- The Ministry predicts a positive inflation outlook, expecting a decline in food prices with the pick-up in summer crop sowing.
- Robust investment activity is evident, with private consumption demand strengthening, particularly in urban areas, supported by indicators like air passenger traffic and vehicle sales.
Understanding Gross domestic product(GDP)
● GDP measures the total monetary value of all final goods and services produced within a country during a specific period. ● Components of GDP include private consumption (PFCE), government spending (GFCE), gross investment (Gross Fixed Capital Expenditure), and net exports (NX). ● GDP calculation formula: GDP = PFCE + Gross investment + GFCE + (Exports – Imports) |