Winning Bizness Desk

Mumbai. The government on Wednesday released the Gross Domestic Product (GDP) figures for the April-June quarter (June quarter) of 2022-23. According to the data released by the Ministry of Statistical and Program Implementation (MoSPI), GDP growth in the June quarter stood at 13.5%. The country's growth rate was much better than the previous ie January-March quarter. The GDP growth rate in the last quarter was 4.1%. GVA growth (YoY) declined to 12.7% from 18.1% in the June quarter.

7.2% growth forecast for the current financial year

RBI had said in its monetary policy meeting earlier this month that the GDP growth rate is likely to be around 16.2% in the first quarter of the current financial year. RBI retained the real GDP growth forecast for FY23 at 7.2%. Notably, GDP is one of the most common indicators used to track the health of the economy which represents the value of all goods and services produced within a country over a specific time period. In this, foreign companies that produce within the country's borders are also included.

Real GDP Vs Nominal GDP

There are two types of GDP. First is Real GDP and 2nd is Nominal GDP. In real GDP, the value of goods and services is calculated at the base year value or stable price. Currently, the base year for calculating GDP is 2011-12. That is, the calculation according to the rates of goods and services in 2011-12. Whereas nominal GDP is calculated on the current price.

How is GDP calculated?

A formula is used to calculate GDP. GDP=C+G+I+NX, here C means private consumption, G means government spending, I means investment and NX means net export. There are four important engines to reduce or increase GDP. The first is you and me. The amount you spend contributes to our economy. The second is the business growth of the private sector. It contributes 32% to GDP and third is government spending.