India's Economic Triumph: Surpassing the $4 Trillion GDP Milestone

Safalta Expert Published by: Gaurav Tondon Updated Mon, 20 Nov 2023 06:00 PM IST

Highlights

S&P Global projects a promising future, anticipating a $6.7 trillion GDP by 2031, reflecting sustained economic momentum.

According to Media Reports, India has reached a historic economic milestone, crossing the $4 trillion mark in its Gross Domestic Product (GDP). This achievement underscores the nation's robust economic growth and resilience in the face of various challenges. However, the finance ministry and the National Statistical Office refrained from offering immediate comments on the viral social media post regarding India's GDP crossing the 4 trillion mark.
 

GDP Growth Rate

Here is the Growth Rate data for India in the past 5 years.

  • India's GDP growth rate for 2022 was 7.00%, a 2.05% decline from 2021.

  • India's GDP growth rate for 2021 was 9.05%, a 14.88% increase from 2020.

  • India's GDP growth rate for 2020 was -5.83%, a 9.7% decline from 2019.

  • India's GDP growth rate for 2019 was 3.87%, a 2.58% decline from 2018.

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Global Ranking

In 2023, India will be the fifth-largest economy in the world by nominal GDP. 

Employment Trends

In March 2023, India's employment rate increased to 36.9% from 36.6% in December 2022. The number of unemployed people decreased by almost two million.

Government Initiatives

The government has taken several initiatives to improve the ease of doing business, reduce corporate tax, provide credit guarantees, and attract foreign direct investment.

Trade & Exports

India's trade-to-GDP ratio in 2022 was 49.37%, which is a 3.71% increase from 2021. India's total exports and imports of goods to the GDP in 2023 are estimated to be over 35.6 percent. This is an increase from the previous fiscal year when the ratio was more than 33 percent.

India's achievement of a $4 Trillion Economy marks a significant milestone in its economic journey. As the nation continues to evolve and embrace new opportunities & moving towards becoming a $ 5 Trillion Economy, this milestone serves as a testament to India's resilience, potential, and promising future on the global stage.

What is GDP?

Gross Domestic Product (GDP) is the total monetary value of all goods and services produced within a country's borders during a specific time period. GDP is a broad measure of a country's economic health. It's also the most commonly used measure of economic activity.

How is GDP measured?

Gross domestic product (GDP) is a measure of the size of a country's economy. It is calculated by adding up the total value of all goods and services produced in a country, multiplied by their prices. GDP can also be calculated by adding up all the money spent or received by participants in the economy

How is India's GDP growth compared to other countries?

India's growth rate was the second highest among G20 countries and almost twice the average for emerging market economies.

What sectors contribute the most to India's GDP?

The services sector accounts for 53.89% of India's GVA of 179.15 lakh crore Indian rupees. With GVA of Rs. 46.44 lakh crore, the Industry sector contributes 25.92%. While Agriculture and allied sector share 20.19%

What factors have contributed to India's recent GDP growth?

Domestic demand, Investment activity, Private consumption, Public infrastructure investment, Strengthening financial sector

Are there any challenges to sustained GDP growth in India?

Weak demand, Unemployment, Poor infrastructure, High public debt, Rising income inequality, Low capital investment, Poor education, Private debt, Population density, Poverty problems

How has the COVID-19 pandemic affected India's GDP growth?

The GDP growth had crashed 23.9% in response to the center's no notice lockdown

What are the future projections for India's GDP growth?

According to S&P Global, India's GDP is expected to grow at an average of 6.7% by 2030-31. This would increase India's GDP from $3.4 trillion in 2023 to $6.7 trillion by 2031. Per capita GDP would also increase to about $4,500.

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