GDP (Gross Domestic Product or Gross Domestic Product) is a measure of a country’s economic performance and represents the total value of all goods and services produced by a country in a given period (usually a year). It is considered one of the most important indicators of a country’s economic health and growth.
GDP is calculated using one of the following methods:
Output Approach: This method involves calculating the GDP by adding the value of all goods and services produced in a country.
Income Approach: This method involves calculating the GDP by adding all the income earned by individuals and businesses in a country.
Expenditure Approach: This method involves calculating the GDP by adding up all the spending on goods and services by consumers, businesses, and the government.
Asian Development Bank (ADB) expects India’s gross domestic product (GDP) growth to slow to 6.4% in fiscal year (FY) 2023 ending March 31, 2024, and rise to 6.7% in FY 2024 Govt improves transportation Policy support for infrastructure, logistics and business ecosystems.
The forecast is part of the latest edition of ADB’s flagship economic publication, the April 2023 Asian Development Outlook (ADO), released today.Slower growth in India in FY2023 is predicated on a continued slowdown in the global economy, tighter monetary conditions and higher oil prices. However, according to ADO April 2023 data, investment is expected to grow faster in FY2024 due to supportive government policies and sound macroeconomic fundamentals, a reduction in bank non-performing loans and a sharp corporate deleveraging that will increase bank lending.
|
GDP |
$3.737 trillion (nominal; 2023 est.) $13.033 trillion (PPP; 2023 est.) |
|
GDP rank |
5th (nominal; 2023) 3rd (PPP; 2023) |
|
GDP growth |
6.8% (2022) 4.4% (Q3 2022-23) 5.9% (2023f) 6.3% (2024f) |
|
GDP per capita |
$2,601 (nominal; 2023 est.) $9,073 (PPP; 2023 est.) |
Improved labor market conditions and consumer confidence will boost private consumption. The central government’s pledge to boost capital spending in fiscal 2023 will also boost demand, despite aiming to reduce the fiscal deficit to 5.9% of GDP. Services will grow strongly in FY2023 and FY2024, aided by a recovery in tourism and other connected services, as the impact of COVID-19 subsides.However, manufacturing growth in FY2023 is expected to be held back by weaker global demand, but may improve in FY2024. Recent announcements on improving agricultural productivity, such as establishing digital services for crop planning and supporting agricultural start-ups, are important to sustain agricultural growth in the medium term.
Assuming a moderation in oil and food prices, inflation could slow to 5% in FY2023 and further to 4.5% in FY2024 as inflationary pressures subside. Meanwhile, monetary policy is expected to tighten in FY2023 and become more accommodative in FY2024 as core inflation persists. The current account deficit is projected to shrink to 2.2 percent of GDP in FY2023 and 1.9 percent in FY2024. Growth in merchandise exports is expected to slow in fiscal 2023 before improving in 2024, as production-related incentive programs and efforts to improve the business environment, such as simplifying labor regulations, improve performance in electronics and other manufacturing growth areas. Strong growth in services exports is expected to strengthen India’s overall balance of payments.Strong growth in services exports is expected to strengthen India’s overall balance of payments.
