• UGI USER
  • Mar 23, 2024
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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)