India’s Economy Grows by 6.7% in April-June 2024
The Indian economy grew by 6.7% in real terms during the April-June quarter of the financial year 2024-25, according to data from the Ministry of Statistics and Programme Implementation. This is a decrease from the 8.2% growth recorded in the same quarter last year.
The nominal GDP growth rate for the April-June quarter of 2024-25 was 9.7%, compared to 8.5% in the same quarter of the previous fiscal year.
Reserve Bank of India’s Projections
The Reserve Bank of India (RBI) has projected a GDP growth rate of 7.2% for the financial year 2024-25. The growth rates for each quarter are expected to be 7.1% for Q1, 7.2% for Q2, 7.3% for Q3, and 7.2% for Q4.
Global Forecasts
India’s GDP grew by 8.2% during the financial year 2023-24, maintaining its status as the fastest-growing major economy. The International Monetary Fund (IMF) has raised its growth projection for India in 2024 from 6.8% to 7%, citing strong domestic demand and a rising working-age population. The World Bank has also revised its forecast for India’s GDP growth in 2024-25 to 6.6% from an earlier projection of 6.4%.
Economic Survey
The Economic Survey presented in Parliament last month conservatively projected India’s real GDP growth at 6.5-7% for 2024-25, acknowledging that market expectations are higher.
Doubts Revealed
Economy -: The economy is like a big machine that makes and uses money, goods, and services in a country. It includes everything from people buying groceries to companies building factories.
6.7% -: 6.7% is a way to show how much something has grown. If you had 100 rupees and it grew by 6.7%, you would have 106.7 rupees.
April-June -: April, May, and June are three months in a year. When we talk about April-June, we mean the time from the start of April to the end of June.
Ministry of Statistics -: The Ministry of Statistics is a part of the Indian government that collects and shares information about things like the economy, population, and jobs.
Reserve Bank of India -: The Reserve Bank of India (RBI) is like the big boss of all banks in India. It helps control the money supply and keeps the economy stable.
GDP -: GDP stands for Gross Domestic Product. It is the total value of all goods and services made in a country in a year. It helps us understand how big and strong an economy is.
IMF -: IMF stands for International Monetary Fund. It is an organization that helps countries manage their money and economy better.
World Bank -: The World Bank is an international organization that gives money and advice to countries to help them build schools, roads, and other important things.
Domestic demand -: Domestic demand means how much people in India want to buy goods and services. It includes things like food, clothes, and cars.
Working-age population -: The working-age population includes people who are old enough to work, usually between 15 and 64 years old. More working people can help the economy grow.