The Indian economy has now fully recovered from the shock of Corona. The IMF in its latest estimate has raised India’s GDP growth estimate to 11.5 per cent for the year 2021. The IMF says that this change policy has come due to the better policy of the Modi government. However, China is the only major economy in the year 2020, with a growth rate of 2.3 per cent in 2020. The IMF said that India’s economy is expected to grow at 6.8 percent in 2022 and China at 5.6 percent.
Let us first know what is GDP?
GDP is called gross domestic product i.e. GDP-Gross Domestic Product. In simple words, GDP is the total value of all goods and services produced in the country in a given year.
Economists say that GDP is exactly the same as a student’s year-round result. That result is revealed through the marksheet. In the same way, the economic progress of the country also shows in which sector of the country has progressed. Who has fallen?
The Central Statistics Office (CSO) in India releases the country’s GDP figures four times a year, ie every quarter. Every year it releases annual GDP growth figures.
How will increase in GDP affect the common man
Economists say that this is important for the general public because only after good growth does the central government think about common schemes.
In simple language, if GDP is increasing, then it means that the country’s economic situation is getting better and the policies made by the government are proving good at the ground level. With this, the country is moving in the right direction.
If GDP is slowing down or going into the negative realm, it means that the government needs to work on its policies to help bring the economy back on track.
GDP also affects the common man’s money
If there is a rapid economic growth in GDP, then foreign investors invest money in the Indian stock market. In such a situation, investors of mutual funds, stock market, bond market get good returns. That’s why businessmen, besides the government, stock market investors wait for these GDP data.
Job opportunities increase
Economists say that if the engine of growth in the country is fast, then the income of companies also increases and they earn more profit. Also, spends more on expansion plans. In such a situation, companies have to recruit new employees.
How much will the country’s GDP increase this year
The IMF has set India’s GDP growth rate at 11.5 percent for the year 2021. The report states that India is the only major economy in the world which will show growth of more than 10 percent. After this comes China, which will have a growth rate of 8.1 percent in 2021 and is followed by Spain (5.9 percent) and France (5.5 percent).
IMF Managing Director Kristalina Georgieva says that India has taken many decisive steps to deal with the epidemic and its economic consequences.
He said that a huge lockdown was done for the size of its population in India, where people live very close. And then India moved towards the ban and lockdown with the goal.