India's First Advance Estimates for 2024-25 show a 6.4% real GDP growth and 9.7% nominal GDP growth. The country's growth prospects for 2025-26 are optimistic, with a 6.5% real GDP growth rate. However, maintaining a 6.5% growth rate over the long term will be challenging due to the increasing base effect.
Copyright infringement not intended Picture Courtesy: The Hindu Context: The First Advance Estimates of National Accounts for 2024-25 show a real GDP growth of 6.4% and a nominal GDP growth of 9.7%, falling short of the Reserve Bank of India's revised growth estimates of 6.6% for real GDP and 10.5% for nominal GDP. Nominal GDP v/s Real GDP Nominal GDP refers to the total market value of all goods and services produced within a country during a specific period, calculated using current market prices, meaning it reflects the price changes that occurred during that time; essentially, it shows the total economic output at current prices, including inflation effects. Real GDP is a measure of the total value of goods and services produced in a country, adjusted for inflation. It's calculated by using a price deflator to remove the effects of price changes. It removes the effects of inflation, which allows for more meaningful comparisons of GDP over time. Economic ...
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