{"id":5108,"date":"2022-12-01T11:30:07","date_gmt":"2022-12-01T06:00:07","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=5108"},"modified":"2025-03-27T04:19:27","modified_gmt":"2025-03-26T22:49:27","slug":"indias-economic-growth-in-q2","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/indias-economic-growth-in-q2\/","title":{"rendered":"India\u2019s Economic Growth in Q2"},"content":{"rendered":"<h2><strong>India\u2019s Economic Growth in Q2:\u00a0<\/strong><\/h2>\n<p>\u00a0The second quarter or Q2 refers to the months of July, August and September.<\/p>\n<ul>\n<li>India\u2019s <strong>Gross Domestic Product (GDP) <\/strong>grew by 6.3 per cent in Q2 on a year-on-year basis.<\/li>\n<li>In other words, it was 6.3% more than the GDP in the same months in 2021.<\/li>\n<li>MoSPI also reported that India\u2019s <strong>Gross Value Added (or GVA)<\/strong> in Q2 grew by. 5.6 per cent on a year-on-year basis.<\/li>\n<li><strong>GDP and GVA:<\/strong><\/li>\n<li>GDP and GVA are the two main ways to ascertain the country\u2019s economic performance.<\/li>\n<li>Both are measures of national income.<\/li>\n<li>The <strong>GDP measures the monetary measure of all \u201cfinal\u201d goods and services<\/strong>\u2014 those that are bought by the final user\u2014 produced in a country in a given period.<\/li>\n<li>The GDP does this by adding up the total expenditures in the economy; in other words, it looks at who spent how much.<\/li>\n<li>That is why GDP captures the total \u201cdemand\u201d in the economy.<\/li>\n<li><strong>There are four key \u201cengines of GDP growth\u201d. These are:<\/strong><\/li>\n<li>All the money Indians spent for their private consumption (that is, <strong>Private Final Consumption Expenditure or PFCE)<\/strong><\/li>\n<li>All the money the government spent on its current consumption, such as salaries [<strong>Government Final Consumption Expenditure or GFCE<\/strong>]<\/li>\n<li>All the money spent towards investments to boost the productive capacity of the economy. This includes business firms investing in factories or the governments building roads and bridges [<strong>Gross Fixed Capital Expenditure<\/strong>]<\/li>\n<li>The net effect of exports (what foreigners spent on our goods) and imports (what Indians spent on foreign goods) [<strong>Net Exports or NX<\/strong>].<\/li>\n<li><strong>GVA:<\/strong><\/li>\n<li>The GVA calculates the same national income from the supply side.<\/li>\n<li>It does so by adding up all the value added across different sectors.<\/li>\n<li>According to the RBI, the GVA of a sector is defined as the value of output minus the value of its intermediary inputs.<\/li>\n<li>This \u201cvalue added\u201d is shared among the primary factors of production, labour and capital.<\/li>\n<li><strong>The GDP and GVA are related by the following equation:<\/strong>\n<ul>\n<li><strong>GDP = (GVA) + (Taxes earned by the government) \u2014 (Subsidies provided by the government).<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/ESlQo6wTmPw9zTJe3HieIRWLohjasqRI5zy6zvd9l7JH7WHq6OjE4cvRkIxNxluW4EDjIGrIZ7gFmqrGN6lMJL-4PdRIQfGUNKx_KvDickDYyEabUD2E_NUWTKqVmzQy3FR0nRzA_6ikzLP0x9TtvQ\" alt=\"\" \/><\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3><strong>Q1) What are the four components of GDP?<\/strong><\/h3>\n<p>The four components of gross domestic product are personal consumption, business investment, government spending, and net exports.<\/p>\n<p><strong>Source:\u00a0<\/strong><a href=\"https:\/\/indianexpress.com\/article\/explained\/explained-economics\/india-q2-gdp-data-explained-udit-misra-8299332\/\" target=\"_blank\" rel=\"nofollow noopener\"><u>Indian Express<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s GDP grew by 6.3 per cent &#038; GVA grew by. 5.6 per cent on a year-on-year basis in Q2<\/p>\n","protected":false},"author":5,"featured_media":5109,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-5108","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/5108","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=5108"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/5108\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/5109"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=5108"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=5108"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=5108"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}