{"id":37037,"date":"2023-09-01T12:05:16","date_gmt":"2023-09-01T06:35:16","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=37037"},"modified":"2025-04-22T10:22:09","modified_gmt":"2025-04-22T04:52:09","slug":"gdp-grew-7-8-percentage","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/gdp-grew-7-8-percentage\/","title":{"rendered":"GDP Grew 7.8% in First Quarter"},"content":{"rendered":"<h3><strong>Why in news?<\/strong><\/h3>\n<ul>\n<li>Growth in India\u2019s Gross Domestic Product (GDP) and the Gross Value Added (GVA) in the economy sped to 7.8% in the first quarter of this year.<\/li>\n<li>This was revealed by the estimates released by the National Statistical Office (NSO).<\/li>\n<\/ul>\n<h2>\u00a0<\/h2>\n<h2><strong>What\u2019s in today\u2019s article?<\/strong><\/h2>\n<ul>\n<li><strong>Why in news?<\/strong><\/li>\n<li><strong>What is National Statistical Office (NSO)?<\/strong><\/li>\n<li><strong>Key Economic Terminologies:<\/strong><\/li>\n<li><strong>News Summary: GDP grew 7.8% in first quarter?<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>National Statistical Office(NSO)<\/strong><\/h2>\n<ul>\n<li><strong>About<\/strong>\n<ul>\n<li>The Ministry of Statistics and Programme Implementation has two wings, one relating to Statistics and the other Programme Implementation.<\/li>\n<li>The <strong>Statistics Wing called the National Statistical Office(NSO).<\/strong><\/li>\n<li><strong>NSO<\/strong> consists of the <u>Central Statistical Office (CSO), the Computer centre and the National Sample Survey Office (NSSO)<\/u>.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Function:<\/strong>\n<ul>\n<li>Releases quarterly GDP data on the last working day of the second month after the reporting quarter;<\/li>\n<li>Releases the Index of Industrial Production (IIP) every month in the form of quick estimates;<\/li>\n<li>Organizes and conducts periodic all-India Economic Censuses;<\/li>\n<li>Maintains liaison with international statistical organizations, such as, the United Nations Statistical Division (UNSD), the Economic and Social Commission for Asia and the Pacific (ESCAP) etc.;<\/li>\n<li>Prepares national accounts as well as publishes annual estimates of national product, government and private consumption expenditure, capital formation, savings, estimates of capital stock and consumption of fixed capital<\/li>\n<\/ul>\n<\/li>\n<\/ul>\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>\n<ul>\n<li>GDP = (GVA) + (Taxes earned by the government) \u2014 (Subsidies provided by the government).<\/li>\n<li>If the taxes &gt; subsidies it provides, the GDP will be higher than GVA.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>News Summary: GDP grew 7.8% in first quarter<\/strong><\/h2>\n<ul>\n<li><strong>GDP growth rate<\/strong>\n<ul>\n<li>India\u2019s GDP clocked a growth rate of 7.8 per cent in the April-June quarter of FY24.\n<ul>\n<li>GDP growth stood at 6.1% in the January to March 2023 quarter and at 13.1% in the first quarter of 2022-23.<\/li>\n<\/ul>\n<\/li>\n<li>At 7.8 per cent, India remains the fastest-growing major economy as China\u2019s GDP growth in the April-June quarter was 6.3 per cent.<\/li>\n<li><strong>Real GDP<\/strong> in Q1 2023-24 is estimated to attain a level of \u20b940.37 lakh crore, as against \u20b937.44 lakh crore in Q1 2022-23.\n<ul>\n<li><u>Real GDP is a measure of the total value of goods and services produced in a country during a specific period, adjusted for changes in the price level<\/u>.<\/li>\n<li>Real GDP = (Price level in the base year) x (Quantity of goods and services produced in the current year).<\/li>\n<\/ul>\n<\/li>\n<li>Meanwhile, India\u2019s nominal GDP in Q1FY24 showed a <strong>growth rate of 8 per cent <\/strong>as compared to 27.7 percent in Q1 FY2022-23.\n<ul>\n<li>Nominal GDP is the total value of goods and services produced in a country during a specific period, typically a year or a quarter, <strong>measured in current market prices<\/strong>.<\/li>\n<li>Nominal GDP = (Price level in the current year) x (Quantity of goods and services produced in the current year).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><strong>Sector-wise growth<\/strong>\n<ul>\n<li><strong>Manufacturing GVA<\/strong> grew for the second quarter in a row, with the pace of growth picking up slightly to 4.7% in Q1 of 2023-24, from 4.5% in the previous quarter.<\/li>\n<li>Agriculture, Forestry and Fishing GVA grew 3.5% between April to June.<\/li>\n<li>It was the Services sectors that recorded the sharpest surge.\n<ul>\n<li>Financial, Real Estate and Professional Services GVA grew 12.2% in Q1.<\/li>\n<li>GVA from Trade, Hotels, Transport, Communication and Services related to broadcasting rose 9.2%.<\/li>\n<li>GVA from Public Administration, Defence and Other Services, as well as the employment-intensive Construction sector rose 7.9% each.<\/li>\n<li>GVA from Electricity, Gas, Water Supply and Other services grew just 2.9%, while Mining and Quarrying GVA grew 5.8%.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><strong>Moderate growth ahead<\/strong>\n<ul>\n<li>India\u2019s growth rate is expected to moderate in the coming quarters. This is due to:\n<ul>\n<li>the effect of the El Nino on the monsoon;<\/li>\n<li>weakness in mining output;<\/li>\n<li>sluggish exports, and<\/li>\n<li>a possible slowing in the momentum of government capex as Lok Sabha elections approach.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3><strong>Q1) What is\u00a0<\/strong><strong>Real GDP<\/strong><strong>?<\/strong><\/h3>\n<p>Real GDP is a measure of the total value of goods and services produced in a country during a specific period, adjusted for changes in the price level. Real GDP = (Price level in the base year) x (Quantity of goods and services produced in the current year).<\/p>\n<h3>\u00a0<\/h3>\n<h3><strong>Q2)\u00a0What is Nominal GDP?<\/strong><\/h3>\n<p>Nominal GDP is the total value of goods and services produced in a country during a specific period, typically a year or a quarter,\u00a0<strong>measured in current market prices<\/strong>. Nominal GDP = (Price level in the current year) x (Quantity of goods and services produced in the current year).<\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<p><strong>Source:<\/strong> <a href=\"https:\/\/www.thehindu.com\/business\/Economy\/gdp-grew-78-in-first-quarter-says-national-statistical-office\/article67255700.ece\" target=\"_blank\" rel=\"nofollow noopener\"><u>GDP grew 7.8% in first quarter<\/u><\/a><u> | <\/u><a href=\"https:\/\/www.mospi.gov.in\/about-ministry-0#:~:text=The%20Ministry%20has%20two%20wings,Sample%20Survey%20Office%20(NSSO)\" target=\"_blank\" rel=\"nofollow noopener\"><u>Ministry of Statistics and Programme Implementation<\/u><\/a><u> | <\/u><a href=\"https:\/\/indianexpress.com\/article\/business\/economy\/india-q1-gdp-growth-april-june-quarter-8917828\/\" target=\"_blank\" rel=\"nofollow noopener\"><u>Indian Express<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The GDP is a monetary measure of all final products and services produced in a country in a year.<\/p>\n","protected":false},"author":5,"featured_media":37038,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-37037","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\/37037","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=37037"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/37037\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/37038"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=37037"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=37037"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=37037"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}