India’s GDP may remain 6.7% in FY2024-25, World Bank said- India will remain the fastest growing country among the world’s major economies. India’s GDP may be 6.6% in FY2024-25: World Bank said- India will remain the fastest growing country among the world’s major economies.

The World Bank has retained India’s GDP forecast for FY2024-25 at 6.6%. Earlier in April also, the World Bank had estimated India’s GDP for FY25 at 6.6%.

The World Bank said that India will remain the fastest growing country among the world’s largest economies. However, the pace of India’s expansion is expected to slow.

The World Bank said that after the high growth rate in FY 2023-24, an average steady growth of 6.7% per annum is estimated for the three financial years starting from FY 2024-25.

India’s economy to grow at 6.7% in FY26
The World Bank has projected India’s economy to grow at 6.7% in FY26 and 6.8% in FY27. Whereas in FY 24, the National Statistical Office (NSO) has estimated the GDP to grow at the rate of 8.2%.

RBI increased GDP estimate, kept inflation estimate intact

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 specific time period. In this, the foreign companies which produce within the country’s borders are also included.

There are two types of GDP
There are two types of GDP. Real GDP and Nominal GDP. In real GDP, the value of goods and services is calculated at the base year’s value or stable price. 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, here C means private consumption, G means government spending, I means investment and NX means net export.

Who is responsible for the fluctuations in GDP?
There are four important engines for increasing or decreasing GDP. The first is you and me. Whatever you spend contributes to our economy. Second is private sector business growth. It contributes 32% to GDP. Third is government expenditure.

This means how much the government is spending to produce goods and services. It contributes 11% to GDP. And fourth is, net demand. For this, India’s total exports are subtracted from total imports, because India has more imports than exports, hence its impact is negative on GPD.