Key facts

  • India was described in the Budget 2023-24 speech as moving from the 10th to the 5th largest economy in nine years, with per-capita income more than do...
  • MoSPI's First Advance Estimate for 2024-25 placed real GDP growth at 6.4%, below the 8.2% growth of 2023-24, while nominal GDP growth was estimated at...
  • Five Year Plans ran from 1951 to 2017; NITI Aayog was formed by a Union Cabinet resolution on 1 January 2015 after the Planning Commission era.
  • The SDG framework has 17 goals and 169 targets; India's SDG India Index score rose to 71 in 2023-24 from 66 in 2020-21.
  • India announced Panchamrit at COP26 in Glasgow on 1 November 2021, including 500 GW non-fossil electricity capacity by 2030 and Net Zero by 2070.

Key Points at a Glance

  1. 1

    Real GDP removes price change, while nominal GDP includes both output and price effects; this distinction is central to growth, tax and ranking questions.

  2. 2

    India was described in the Budget 2023-24 speech as moving from the 10th to the 5th largest economy in nine years, with per-capita income more than doubled to Rs 1.97 lakh.

  3. 3

    MoSPI's First Advance Estimate for 2024-25 placed real GDP growth at 6.4%, below the 8.2% growth of 2023-24, while nominal GDP growth was estimated at 9.7%.

  4. 4

    Five Year Plans ran from 1951 to 2017; NITI Aayog was formed by a Union Cabinet resolution on 1 January 2015 after the Planning Commission era.

  5. 5

    The SDG framework has 17 goals and 169 targets; India's SDG India Index score rose to 71 in 2023-24 from 66 in 2020-21.

  6. 6

    India announced Panchamrit at COP26 in Glasgow on 1 November 2021, including 500 GW non-fossil electricity capacity by 2030 and Net Zero by 2070.

  7. 7

    Make in India was launched on 25 September 2014, while Atmanirbhar Bharat Abhiyan was announced on 12 May 2020 during the COVID-19 shock.

  8. 8

    The Gini coefficient, HDI, demographic dividend and ICOR test whether growth is inclusive, capability-building and efficient, not merely high in headline GDP terms.

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National Income and Growth Measures

Economic growth is measured through output and income aggregates. Real GDP shows whether production has increased after removing price change. Nominal GDP shows the current market value of output, so it moves with both production and prices. GNI adjusts national income for net factor income from abroad, while NNI and per-capita income help compare welfare potential. Purchasing power parity gives another comparison by valuing domestic purchasing capacity.

An objective-exam question often tests the difference between these bases. India being the 5th largest economy by nominal GDP is a nominal-dollar rank; it is not a statement that every household has the fifth-highest income in the world. A rupee rise in domestic output can also look different in dollar comparisons when the exchange rate changes. GFCF is another useful term because it tracks investment in fixed assets that can raise future production.

Exam takeaway: always identify the base of comparison before answering a question on GDP, income, rank or welfare.

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