GDP Growth
1. What is GDP?
- Gross Domestic Product (GDP) is the total monetary value of all final goods & services produced within a country’s geographical boundary in a given time period (usually a year/quarter).
- Formula (Expenditure approach):
GDP = C + G + I + (X – M)
C = Private Consumption | G = Government Spending | I = Gross Investment | X = Exports | M = Imports
2. Types of GDP
| Term | Meaning | Base Year in India |
|---|---|---|
| Nominal GDP | At current market prices | 2011-12 (till 2024-25) |
| Real GDP | At constant base-year prices (inflation adjusted) | 2011-12 |
| GDP Deflator | (Nominal ÷ Real) × 100; measures economy-wide inflation | — |
| GVA | Gross Value Added = GDP – Net Product Taxes | 2011-12 |
3. Agencies Estimating India’s GDP
| Agency | Frequency | 1st Advance Estimates released |
|---|---|---|
| MoSPI (Ministry of Statistics & PI) | Annual + Quarterly | 7 Jan 2023 (for FY 2022-23) |
| RBI | Annual (in Aug) & Monthly Bulletin | — |
| IMF | World Economic Outlook (bi-annual) | Oct & Apr |
| World Bank | India Development Update | bi-annual |
4. India’s GDP Growth Journey (1950-2024) – Key Milestones
| Year / Period | Event / Reforms | Real GDP Growth (%) |
|---|---|---|
| 1950-51 | First Five-Year Plan launched | 3.6 |
| 1956-57 | Second Plan (Nehru-Mahalanobis) | 4.2 |
| 1965-66 | Green Revolution begins | −3.7 (drought) |
| 1975-76 | Growth rebounds post 1973 oil shock | 9.0 |
| 1980s | Partial liberalisation | Avg 5.5 |
| 1991 | BoP crisis; New Industrial Policy (Manmohan Singh) | 1.1 (lowest since 1980) |
| 1992-97 | Liberalisation, Privatisation, Globalisation | Avg 6.5 |
| 1999-00 | Y2K & services boom | 6.0 |
| 2003-08 | High growth phase | Avg 8.8 |
| 2008-09 | Global Financial Crisis | 3.1 |
| 2010-11 | Post-crisis rebound | 8.5 |
| 2016-17 | Demonetisation (8 Nov 2016) | 8.3 → 7.1 |
| 2017-18 | GST rollout (1 Jul 2017) | 7.0 |
| 2019-20 | Pre-Covid slowdown | 4.2 |
| 2020-21 | Covid-19 lockdown | −6.6 (first contraction in 40 yrs) |
| 2021-22 | Recovery year | 8.7 |
| 2022-23 | Post-pandemic normalisation | 7.2 |
| 2023-24 (1st RE) | Released 31 May 2024 | 8.2 |
| 2024-25 (Budget Est.) | Projected 6.5 – 7.0 (RBI: 7.0) | — |
5. India vs World – Comparative Growth (%)
| Country | 2020 | 2021 | 2022 | 2023 | 2024-P (IMF Apr-24) |
|---|---|---|---|---|---|
| India | −6.6 | 8.7 | 7.2 | 8.2 | 7.0 |
| China | 2.2 | 8.4 | 3.0 | 5.2 | 4.6 |
| USA | −3.4 | 5.7 | 2.1 | 2.5 | 2.1 |
| World | −3.1 | 6.0 | 3.1 | 3.2 | 3.2 |
6. Sectoral Contribution to India’s GDP (2023-24, 1st RE)
| Sector | Share (%) | GVA Growth (%) |
|---|---|---|
| Agriculture | 15.9 | 1.4 |
| Industry | 25.9 | 7.8 |
| Services | 58.2 | 9.8 |
7. Per-Capita GDP & Income Milestones
- India crossed $2,000 per-capita nominal GDP in 2017-18.
- Projected 2024-25: ~$2,850 (IMF).
- Target to become $5-trillion economy: Original target 2024-25 → now expected by 2027-28 (Finance Ministry).
8. Important Dates to Remember
| Date | Event |
|---|---|
| 31 Jan 2015 | New GDP series with 2011-12 base released |
| 8 Nov 2016 | Demonetisation announced (impact 2016-17 growth) |
| 1 Jul 2017 | GST implemented |
| 24 Mar 2020 | 1st nationwide Covid lockdown (FY 2020-21 contraction) |
| 31 May 2024 | 1st Revised Estimates for 2023-24 released |
9. One-Liner Quick Facts (Memory Hooks)
- Fastest growth since 1947: 1988-89 (10.2%) & 2021-22 (8.7%).
- Lowest post-liberalisation: 2020-21 (−6.6%).
- Only economy with +7% projection in IMF W-Apr-24: India.
- Base year revision cycle: Every 5-6 yrs; next (2017-18) likely 2025.
- GDP = GVA + Net Product Taxes.
- India became 5th largest economy (nominal) in 2019; overtook UK again in 2023.
- Per-capita income crossed ₹1 lakh (provisional) in 2020-21.
Quick Reference Tables
Table-1: India’s Real GDP Growth (decade-wise average)
| Decade | Avg Real Growth (%) |
|---|---|
| 1980s | 5.5 |
| 1990s | 5.8 |
| 2000s | 7.2 |
| 2010s | 6.7 |
Table-2: Agencies & Their GDP Publications
| Publication | Agency | Frequency |
|---|---|---|
| National Accounts Statistics | MoSPI | Annual |
| RBI Bulletin | RBI | Monthly |
| World Economic Outlook | IMF | Bi-annual |
| India Development Update | World Bank | Bi-annual |
15+ MCQs for Railway Exams
Q1. What was India’s real GDP growth rate for 2020-21?
A) 3.7%
B) −6.6%
C) 0.4%
D) 1.1%
Answer
B) −6.6%Q2. The base year for the present GDP series in India is
A) 2004-05
B) 2011-12
C) 2017-18
D) 2001-02
Answer
B) 2011-12Q3. Which sector had the highest share in India’s GDP in 2023-24?
A) Agriculture
B) Industry
C) Services
D Mining
Answer
C) ServicesQ4. Who releases the First Advance Estimates of GDP in India?
A) RBI
B) NITI Aayog
C) MoSPI
D) Finance Ministry
Answer
C) MoSPIQ5. The GDP deflator is calculated as
A) (Nominal GDP ÷ Real GDP) × 100
B) (Real GDP ÷ Nominal GDP) × 100
C) Nominal – Real
D) Real – Nominal
Answer
A) (Nominal GDP ÷ Real GDP) × 100Q6. India’s highest-ever annual real GDP growth since 1951 was recorded in
A) 1988-89
B) 2007-08
C) 2010-11
D) 2021-22
Answer
A) 1988-89 (10.2%)Q7. Which of the following is NOT a component of GDP by expenditure method?
A) Consumption
B) Investment
C) Imports
D) Subsidies
Answer
Q8. The economic liberalisation policies were announced in
A) 1985
B) 1991
C) 1999
D) 2004
Answer
B) 1991Q9. India’s GDP contracted for the first time in four decades in
A) 2008-09
B) 2019-20
C) 2020-21
D) 2021-22
Answer
C) 2020-21Q10. Per-capita income of India crossed the ₹1 lakh mark (provisional) in
A) 2018-19
B) 2019-20
C) 2020-21
D) 2021-22
Answer
C) 2020-21Q11. Which year marked the implementation of GST in India?
A) 2015-16
B) 2016-17
C) 2017-18
D) 2018-19
Answer
C) 2017-18Q12. The difference between GDP and GVA is
A) Depreciation
B) Net indirect taxes
C) Subsidies
D) Factor cost
Answer
B) Net indirect taxesQ13. According to IMF’s World Economic Outlook April 2024, India’s projected growth for 2024-25 is
A) 6.0%
B) 6.5%
C) 7.0%
D) 7.5%
Answer
C) 7.0%Q14. Which Five-Year Plan recorded the lowest growth of −3.7%?
A) First Plan
B) Second Plan
C) Third Plan
D) Annual Plan 1965-66
Answer
D) Annual Plan 1965-66 (drought year)Q15. India aims to become a $5-trillion economy by
A) 2024-25
B) 2025-26
C) 2027-28
D) 2030-31
Answer
C) 2027-28Q16. Real GDP is also termed as
A) GDP at current prices
B) GDP at constant prices
C) GDP at factor cost
D) Net domestic product
Answer
B) GDP at constant pricesQ17. The share of agriculture in India’s GDP (2023-24) is approximately
A) 10%
B) 15.9%
C) 20%
D) 25%
Answer
B) 15.9%Keep revising the one-liners & tables; 6-8 questions every year in RRB NTPC/Group-D come directly from GDP/growth statistics.
BETA
