India became the fifth largest economy in the world by beating the epidemic, know its meaning

The growth rate of India’s economy in the first quarter of the current financial year was the fastest in the last four quarters. The main reason for this is the strong performance of the agriculture and services sector. This will increase the confidence of global investors in the Indian market and will also help in attracting investments.

India’s economy has expanded at a rapid pace by beating the corona epidemic. According to an estimate, India’s GDP growth rate in the current financial year has been 13.5 percent. At the same time, according to Bloomberg’s report released on Friday, India overtook Britain in the last quarter of 2021. India has now become the fifth largest economy in the world, overtaking Britain. Let’s know its meaning…

India was in the first 11th place

 According to the International Monetary Fund (IMF) GDP data, India has made gains in the first quarter. The US is currently the largest economy in the world. While at number two, China is followed by Japan and Germany. A decade ago, India was at number 11 on this list and Britain at number five. India has done this feat for the second time. Earlier in 2019 too, Britain was pushed to sixth place.

The size of the Indian economy stood at $ 854.7 billion in the March quarter

 India has recently released the GDP figures for the first quarter of the current financial year. According to this, India is the fastest growing economy in the world. In the first quarter of the current financial year, the GDP growth rate was 13.5 percent, which is the highest in the last one year. In terms of cash, the size of the Indian economy stood at $854.7 billion in the March quarter, while the UK economy stood at $816 billion.

UK GDP $3.19 trillion

 Britain’s GDP is $3.19 trillion. With an estimated growth rate of 7 per cent, India is likely to overtake the UK on an annualized basis this year as well.

China is not even close to India’s growth

 Talking about the growth rate of India, the second largest economy in the world, China is not even around. China’s growth rate in the April-June quarter has been 0.4 percent. At the same time, many other estimates suggest that even on an annual basis, China may lag behind in comparison to India.

 Agriculture and service sector increased the pace of the economy

 The National Statistical Office (NSO) released the figures on Wednesday. According to them, the growth rate of the services sector was 17.6 percent in the April-June quarter, as compared to 10.5 percent in the same quarter of the previous financial year. The growth rate of the agriculture sector stood at 4.5 per cent. It was 2.2 per cent in the first quarter of 2021-22.

Financial, real estate and professional services growth increased from 2.3 per cent to 9.2 per cent. In addition, electricity, gas, water supply and other utility services grew at 14.7 per cent, as against 13.8 per cent in the same quarter of 2021-22. The rate of growth of public administration, defense and other services increased from 6.2% to 26.3%. The strong performance of the agriculture and services sector will boost the confidence of global investors in the Indian market and will also help in attracting investments.

Growth rate up to 7.4 per cent in FY 2022-23

 Finance Secretary TV Somanathan says that the Indian economy is moving towards achieving a growth rate of 7-7.4% in the current financial year. Allaying concerns of increasing imports putting pressure on the fiscal position, he said, the government is confident of keeping the fiscal deficit at 6.4 per cent of GDP in the current fiscal.

economy rises after decline

According to the National Statistics Office, the nominal GDP at current prices grew by 26.7% to Rs 64.95 lakh crore in the first quarter of 2022-23. It was Rs 51.27 lakh crore in the same quarter of 2021-22. GDP at current prices has grown by 32.4 per cent in 2021-22.

The Gross Value Added (GVA) during this period grew by 12 per cent to Rs 34.41 lakh crore. Real GDP stood at Rs 27.03 lakh crore in the April-June quarter of 2020. In the first quarter of 2020-21, there was a decline of 23.8 percent due to the lockdown imposed to prevent the corona epidemic.

Such was the size of GDP in the first quarter of five yearsApril-June, 201833.82 lakh crore April-June, 201935.49 lakh crore April-June, 202027.04 lakh crore April-June, 202132.46 lakh crore April-June, 202236.85 lakh crore rupees (2019 i.e. pandemic 3.83 percent more than the previous level)

GST collection 1.4 lakh crore

 Economic Affairs Secretary Ajay Seth said that the GST collection in August has been around Rs 1.4 lakh crore. This indicates a boom in the economy. He said gross fixed capital formation grew 34.7% in April-June, the highest in 10 years.

Fiscal deficit also came down marginally to 20.5 percent

 During the first four months of the current fiscal, ie April-July, the fiscal deficit narrowed to 20.5 per cent of the annual target. It was 21.3 per cent in the same period a year ago. However, the latest figures are seen as a sign of improvement in the state of public finances in terms of fiscal deficit. According to the latest data of the Controller General of Accounts (CGA), the fiscal deficit (the gap between expenditure and revenue) stood at Rs 3,40,831 crore during April-July. This deficit also reflects the loan taken from the market by the government.

India’s external debt rises 8.2% to $620.7 billion

 India’s external debt grew by 8.2 per cent to $620.7 billion at the end of March 2022 from a year ago. According to the Ministry of Finance, 53.2 percent of this external debt of the country is in the form of US dollars, while the debt payable in the form of Indian rupees is 31.2 percent. The ministry said, India’s external debt continues to be well-managed. External debt as a ratio of GDP stood at 19.9 per cent, a decline from 100.6 per cent a year ago.

Growth rate of basic industries lowest in six months

 According to NSO data, the growth rate of eight core industries slowed down to 4.5 per cent in July. This rate of production growth is the lowest in six months. It was 9.9 per cent in the same month a year ago. The growth rate of basic industries was 13.2 per cent in June, 19.3 per cent in May, 9.5 per cent in April, 4.8 per cent in March, 5.9 per cent in February and 4 per cent in January.

According to the data, eight core industries — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity — grew at 11.5 per cent in the first four months of the current fiscal, ie, April-July.

It was 21.4 per cent in the same period of 2021-22. Crude oil and natural gas production declined by 3.8 per cent and 0.3 per cent, respectively, in the month under review.

Question: How did the economy grow amidst the decline

 In fact, this incident has happened for the second time for the Indian economy to reach the fifth position. Earlier it happened in 2019. Now it is worth noting that India has overtaken Britain in the last quarter of 2021. This clearly means that based on the figures of October, November and December last year, India has been told ahead of Britain in terms of GDP. Nine months have passed since this quarter, while the latest figures from the National Statistics Office showed a decline. In such a situation, it can be understood that the expansion in the Indian economy is now in a state of contraction. However, since India is a country of youth and a growing economy, it is attracting investors.

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