{"id":35526,"date":"2023-06-01T08:55:42","date_gmt":"2023-06-01T03:25:42","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=35526"},"modified":"2025-04-21T08:31:35","modified_gmt":"2025-04-21T03:01:35","slug":"national-income-data-indias-gdp-expanded-61-in-2022-23s-last-quarter","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/national-income-data-indias-gdp-expanded-61-in-2022-23s-last-quarter\/","title":{"rendered":"National Income data: India\u2019s GDP expanded 6.1% in 2022-23\u2019s last quarter"},"content":{"rendered":"<h3><strong>What\u2019s in today\u2019s article?<\/strong><\/h3>\n<ul>\n<li><strong>Why in News?<\/strong><\/li>\n<li><strong>Key Economic Terminologies<\/strong><\/li>\n<li><strong>The Recently Released Data<\/strong><\/li>\n<li><strong>Takeaways from the Recent Data<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>Why in News?<\/strong><\/h2>\n<ul>\n<li>According to the provisional national income data released by the National Statistical Office (NSO), India\u2019s gross domestic product (GDP) growth accelerated to 6.1% in the January to March 2023 quarter.<\/li>\n<li>This has lifted the economy\u2019s growth rate in 2022-23 to<strong> 7.2%<\/strong> from the 7% estimated earlier.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<figure class=\"media\">\n<div data-oembed-url=\"https:\/\/www.youtube.com\/watch?v=XOAEH_HibfU\">\n<div><iframe src=\"https:\/\/www.youtube.com\/embed\/XOAEH_HibfU\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/div>\n<\/div>\n<\/figure>\n<p>&nbsp;<\/p>\n<h2><strong>Key Economic Terminologies:<\/strong><\/h2>\n<ul>\n<li>GDP and GVA are the two main ways to ascertain the country\u2019s economic performance that <strong>measures national income.<\/strong><\/li>\n<li><strong>GDP:<\/strong>\n<ul>\n<li>The GDP is a monetary measure of <strong>all final products and services<\/strong> (those purchased by the final user) produced in a country over a certain period.<\/li>\n<li>The GDP accomplishes this <strong>by adding total expenditures <\/strong>in the economy, examining who spent how much, thus, measuring the economy&#8217;s overall &#8220;<strong>demand<\/strong>.&#8221;<\/li>\n<\/ul>\n<\/li>\n<li><strong>4 key engines of GDP growth: (GDP = C + I + G + NX)<\/strong>\n<ul>\n<li><strong>Consumption (C)\/<\/strong>Private Final Consumption Expenditure (PFCE)<strong>:<\/strong> The biggest engine is consumption demand from private individuals.<\/li>\n<li><strong>Investment (I)\/<\/strong>Gross Fixed Capital Formation (GFCF)<strong>: <\/strong>The second-biggest engine is the investment demand generated by private sector businesses.<\/li>\n<li><strong>Government (G)\/<\/strong>Government Final Consumption Expenditure (GFCE)<strong>:<\/strong> The third engine (~11%) is the demand for goods and services generated by the government.<\/li>\n<li>Net Exports (NX) = Exports minus imports.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Gross value added (GVA):<\/strong>\n<ul>\n<li>It calculates the same national income from the <strong>supply side<\/strong>, by adding up all the value added (value of output minus the value of its intermediary inputs) across different sectors.<\/li>\n<li>This value added is shared among the primary factors of production, labour and capital.<\/li>\n<li>By looking at the GVA growth one can understand <strong>which sector of the economy is robust and which is struggling.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li><strong>How are GDP and GVA related? <\/strong>GDP = (GVA) + (Taxes earned by the government) \u2014 (Subsidies provided by the government). If the taxes &gt; subsidies it provides, the GDP will be higher than GVA.<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><\/p>\n<h2><strong>The Recently Released Data:<\/strong><\/h2>\n<p><img decoding=\"async\" src=\"https:\/\/vajiramandravi-test.s3.us-east-1.amazonaws.com\/media\/content\/ckeditor\/2023\/06\/02\/image-20230602012615-1.png\" alt=\"\" \/><\/p>\n<p>&nbsp;<\/p>\n<h2><strong>GDP:<\/strong><\/h2>\n<ul>\n<li><strong>India\u2019s 6.1% GDP growth was the fastest<\/strong> among major economies in the fourth quarter and the prospects look better for this year than they did four months ago.<\/li>\n<li><strong>GVA:<\/strong>\n<ul>\n<li>It is estimated to have risen <strong>7% in 2022-23<\/strong>, compared to 8.8% in 2021-22, with manufacturing GVA growth sliding to just 1.3% from 11.1% a year ago.<\/li>\n<li>Economists noted that though several sectors delivered a positive surprise, <strong>consumption remained weak and the overall growth pattern remains uneven.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li><strong>Agri, services growth:<\/strong>\n<ul>\n<li><strong>The agricultural GVA grew 4%<\/strong>, up from 3.5% in the previous year.<\/li>\n<li><strong>The financial, real estate and professional services sectors<\/strong> saw their GVA grow 7.1%, compared to 4.7% in 2021-22.<\/li>\n<li><strong>The GVA of the trade, hotels, transport, and communication sectors<\/strong>, as well as services related to broadcasting grew 14%, marginally faster than in the previous year.<\/li>\n<li><strong>This means the current economic outcomes are boosted by the farm and services sector.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>Takeaways from the Recent Data:<\/strong><\/h2>\n<ul>\n<li>The 2022-23 GDP growth figures<strong> underscored the resilience of the Indian economy<\/strong> amidst global challenges.<\/li>\n<li><strong>Exports of goods and services accounted for 23.5% of GDP<\/strong>, the highest since 2014-15.<\/li>\n<li><strong>The private consumption hit the highest<\/strong> level since 2006-07 at 58.5% and gross fixed capital formation is at the highest point (34% of GDP) since 2013-14.<\/li>\n<li><strong>GVA from the employment-intensive construction sector<\/strong> grew 10% in 2022-23, from 14.8% in 2021-22.<\/li>\n<li>However, <strong>the phenomenon of pent-up demand<\/strong> that lifted services through last year and this fiscal year\u2019s first two months will not be strong, and private sector investment has to pick up.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3><strong>Q1) What is pent-up demand?<\/strong><\/h3>\n<p>Pent-up demand refers to a situation where demand for a service or product is unusually strong. Economists generally use the term to describe the general public&#8217;s return to consumerism following a period of decreased spending.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<h3><strong>Q2) What is the difference between GDP and GVA?<\/strong><\/h3>\n<p>GVA is the value added to the product to enhance the various aspects of the product whereas GDP is the total amount of products produced in the country.<\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<p><strong>Source:\u00a0<\/strong><a href=\"https:\/\/www.thehindu.com\/business\/Economy\/gdp-grows-61-in-march-quarter-72-in-fy23\/article66915856.ece\" target=\"_blank\" rel=\"nofollow noopener\"><u>India\u2019s GDP expanded 6.1% in 2022-23\u2019s last quarter<\/u><\/a>\u00a0|\u00a0<a href=\"https:\/\/indianexpress.com\/article\/business\/economy\/india-q4-gdp-data-economic-growth-8638647\/\" target=\"_blank\" rel=\"nofollow noopener\"><u>IE<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s gross domestic product (GDP) growth accelerated to 6.1% in the January to March 2023 quarter<\/p>\n","protected":false},"author":5,"featured_media":35527,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-35526","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/35526","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=35526"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/35526\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/35527"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=35526"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=35526"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=35526"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}