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Economic Trends

Detailed explanation of Indian Economic Trends - GDP, Inflation, Growth, Development Indicators

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๐Ÿ“Š Economic Trends - Introduction

Key Indicators and Trends of Indian Economy

๐Ÿ›๏ธ Economic Indicators Overview - SVG
๐Ÿ“Š Economic Trends - Key Indicators ๐Ÿ’ฐ GDP (Gross Domestic Product) Gross domestic product of the country India 5th Largest Economy GDP Growth: ~7% (2024-25) ๐ŸŒ GNP (Gross National Product) GDP + Foreign Income GNP = GDP + NFIA Net Factor Income Abroad ๐Ÿ“‰ NNP (Net National Product) GNP - Depreciation NNP = GNP - Depreciation National Income = NNP at FC ๐Ÿ‘ค Per Capita Income Personal income = National Income / Population India: โ‚น1.72 Lakh (2023-24) ๐Ÿ“ˆ Inflation Rate of inflation CPI Based Inflation RBI Target: 4% (ยฑ2%) ๐ŸŽฏ HDI (Human Development) Human Development Index Health + Education + Income India Rank: 134 (2024) ๐Ÿ“ Key Formulas GDP = C + I + G + (X - M) | GNP = GDP + NFIA | NNP = GNP - Depreciation National Income = NNP at Factor Cost | Per Capita = NI / Population C=Consumption, I=Investment, G=Govt Spending, X=Exports, M=Imports, NFIA=Net Factor Income Abroad
๐Ÿ“œ Key Economic Indicators
GDP (2024-25 Est.) $4.2 Trillion (5th Largest)
GDP Growth Rate ~7%
Per Capita Income โ‚น1.72 Lakh (2023-24)
Inflation Target (RBI) 4% (±2%)
HDI Rank 134 out of 193 (2024)
Base Year (GDP) 2011-12
GDP Calculator CSO (Now NSO)

๐Ÿ’ฐ GDP & National Income - Detailed

๐Ÿ“Š GDP Calculation Methods - SVG
๐Ÿ’ฐ Methods of calculating GDP (3 Methods) ๐Ÿญ 1. Method of production Production / Output Method Primary Sector (Agriculture) + Secondary Sector (Industry) + Tertiary Sector (Services) = Gross Value Added (GVA) ๐Ÿ’ต 2. Income Method Income Method Wages & Salaries + Rent + Interest + Profit + Mixed Income (Self-Employed) = Total Factor Income ๐Ÿ›’ 3. Expenditure method Expenditure Method C (Consumption) + I (Investment) + G (Govt) + (X - M) Net Exports = GDP at Market Price ๐Ÿ“‹ Types of GDP ๐Ÿ’ต Nominal GDP (current price) Calculated at Current Market Prices Inflation will be added | Higher Value ๐Ÿ“Š Real GDP (constant price) Calculated at Base Year Prices Inflation will be deducted | True Growth ๐Ÿ‡ฎ๐Ÿ‡ณ India GDP Sector Contribution (2023-24) Agriculture: ~15% | Industry: ~25% | Services: ~60% Services Sector = Largest Contributor | Agriculture = Largest Employer
๐Ÿ“Š GDP & National Income Concepts
Concept Formula Explanation
GDP C + I + G + (X-M) Production within the country
GNP GDP + NFIA Gross Product of Citizens
NDP GDP - Depreciation GDP minus depreciation
NNP GNP - Depreciation GNP minus depreciation
National Income NNP at Factor Cost National income
Per Capita Income NI / Population Personal income

๐Ÿ“ˆ Inflation & Price Index

๐Ÿ“Š Inflation Types - SVG
๐Ÿ“ˆ Inflation - Types & Measures Inflation = constant rise in prices of goods Depreciation of money | Purchasing Power โ†“ ๐Ÿ“ˆ Demand-Pull Inflation Caused by increased demand "Too much money chasing too few goods" Eg: Festival Season ๐Ÿ“‰ Cost-Push Inflation Due to increase in cost of production Raw Materials, Wages, Oil Price Rise Eg: Petrol Price Hike ๐Ÿ›๏ธ Structural Inflation Due to structural defects Supply Chain Issues, Storage Problems Ex: Onion Price ๐Ÿ“Š Price Indices ๐Ÿ›’ CPI (Consumer Price Index) Consumer Price Index Base Year: 2012 | Released by: NSO RBI uses CPI for Inflation Targeting ๐Ÿญ WPI (Wholesale Price Index) Total price index Base Year: 2011-12 | Released by: DPIIT Producer/Wholesale Level Prices ๐ŸŽฏ RBI Inflation Target (Flexible Inflation Targeting) Target: 4% | Tolerance Band: ยฑ2% (2% to 6%) | MPC Reviews Bi-monthly
๐Ÿ“Š CPI vs WPI Comparison
feature CPI WPI
Full Form Consumer Price Index Wholesale Price Index
to measure Consumer level pricing Total price level
Base Year 2012 2011-12
Released by CSO DPIIT
Services will be included will not be included
RBI Uses โœ… Yes (Inflation Target) โŒ No
Items 299 697
๐Ÿ“‰ Deflation & Other Concepts
Deflation Negative Inflation
Stagflation Inflation + Unemployment + Slow Growth
Hyperinflation Very high inflation (>50% per month)
Disinflation Decreasing Inflation Rate (Still Positive)
Core Inflation Inflation excluding Food & Fuel
Headline Inflation Headline Inflation (CPI Based)

๐ŸŽฏ Economic Trends - Shortcuts & Memory Tricks

๐Ÿง  Quick Memory SVG
๐ŸŽฏ ECONOMIC TRENDS - MEMORY TRICKS ๐Ÿ’ฐ GDP FORMULA TRICK C-I-G-XM "CIG eXports-iMports" Consumption+Investment+Govt+(X-M) ๐Ÿ“Š NI CHAIN โ€‹โ€‹TRICK GDP โ†’ GNP โ†’ NNP โ†’ NI +NFIA โ†’ -Dep โ†’ at FC "GDPGNNI = GoPGoNo" ๐ŸŽฏ RBI TARGET TRICK 4% ยฑ 2% "4 is the Core, 2 is More" Range: 2% to 6% ๐Ÿ“Š CPI vs WPI TRICK "CPI = Consumer = RBI uses" "WPI = Wholesale = No Services" CPI Base: 2012 | WPI Base: 2011-12 ๐Ÿ‡ฎ๐Ÿ‡ณ SECTOR TRICK "15-25-60 = Agri-Ind-Ser" Services: Largest GDP (60%) Agriculture: Largest Employment ๐Ÿ“ˆ INFLATION TYPE TRICK "DCS = Demand-Cost-Structural" Demand Pull = Too much money Cost Push = Production cost โ†‘ ๐ŸŽฏ MASTER ONE-LINER "5th GDP - 7% Growth - 134 HDI" "CPI-4% - 15-25-60 Sectors" India Key Economic Snapshot
๐Ÿ“ Quick One-Liners
India GDP Rank 5th Largest Economy
GDP Growth (2024-25) ~7%
GDP Base Year 2011-12
GDP Formula C + I + G + (X - M)
National Income NNP at Factor Cost
RBI Inflation Target 4% (±2%)
CPI Base Year 2012
WPI Base Year 2011-12
HDI Rank 134 (2024)
Services Sector GDP ~60%
GDP Calculator NSO (Earlier CSO)
Stagflation Inflation + Unemployment + Low Growth
โ“ Frequently Asked Questions
Q1: What is the economy of India?
A: 5th Largest Economy (GDP)
Q2: What is RBI Inflation Target?
A: 4% (±2% Tolerance = 2% to 6%)
Q3: National Income Formula?
A: NNP at Factor Cost
Q4: Who publishes CPI?
A: NSO (National Statistical Office)
Q5: Which sector has the largest share in GDP?
A: Services Sector (~60%)
Q6: What is Stagflation?
A: Inflation + Unemployment + Low Growth (3 Problems)
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