World Bank raised India's GDP growth forecast by 0.4%: to 7% for FY 2024-25, RBI had estimated it to be 7.2%

The World Bank has raised India's Gross Domestic Product (GDP) growth forecast for the financial year 2024-25 from 6.6% to 7%. World Bank Country Director (India) Auguste Tano Koume said that in the last financial year 2024, the Indian economy grew at a rate of 8.2%, which was the fastest. India's economy is still growing at a good pace. In such a situation, the World Bank has raised its growth forecast for the current financial year. RBI maintained GDP growth forecast at 7.2% Last month, RBI maintained India's GDP growth forecast for FY25 at 7.2%. At the same time, the International Monetary Fund (IMF) raised India's GDP growth forecast for the financial year 2024-25 by 0.20% to 7%. What is Gross Domestic Product? GDP is one of the most common indicators used to track the health of the economy. GDP shows the value of all goods and services produced within the country in a given time. It also includes the foreign companies which produce goods while staying within the country's borders. There are two types of GDP There are two types of GDP. Real and nominal. In real GDP, the value of goods and services is calculated on the base year's value or stable price. Currently, the base year for GDP calculation is 2011-12. That is, the calculation is done according to the rates of goods and services in 2011-12. Whereas nominal GDP is calculated on the 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 increase or decrease in GDP? There are four important engines to decrease or increase GDP. The first is you and me. Whatever you spend contributes to our economy. The second is the business growth of the private sector. It contributes 32% to GDP. The third is government expenditure. It means how much the government is spending to produce goods and services. It contributes 11% to GDP. And the fourth is net demand. For this, India's total exports are subtracted from total imports, because in India imports are more than exports, so its impact on GDP is negative.

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