Key facts

  • The Budget 2023-24 speech stated that India moved from the 10th to the 5th largest economy in nine years, with per-capita income more than doubled to...
  • MoSPI’s First Advance Estimate for 2024-25 placed real GDP growth at 6.4%, compared with 8.2% growth in 2023-24.
  • Five Year Plans ran from 1951 to 2017; NITI Aayog was formed by a Union Cabinet resolution on 1 January 2015.
  • The United Nations 2030 Agenda has 17 Sustainable Development Goals and 169 targets; India’s SDG Index score rose to 71 in 2023-24.
  • At COP26 in Glasgow, India announced Panchamrit targets, including Net Zero by 2070 and 500 GW non-fossil electricity capacity by 2030.

Key Points at a Glance

  1. 1

    Real GDP measures output after removing price change, while nominal GDP includes both output and price effects.

  2. 2

    GDP, GNI, NNI, per-capita income and PPP answer different questions, so India’s rank changes with the measurement base.

  3. 3

    The Budget 2023-24 speech stated that India moved from the 10th to the 5th largest economy in nine years, with per-capita income more than doubled to Rs 1.97 lakh.

  4. 4

    MoSPI’s First Advance Estimate for 2024-25 placed real GDP growth at 6.4%, compared with 8.2% growth in 2023-24.

  5. 5

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

  6. 6

    The United Nations 2030 Agenda has 17 Sustainable Development Goals and 169 targets; India’s SDG Index score rose to 71 in 2023-24.

  7. 7

    At COP26 in Glasgow, India announced Panchamrit targets, including Net Zero by 2070 and 500 GW non-fossil electricity capacity by 2030.

  8. 8

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

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National Income and Growth Measures

Economic growth is first measured through output and income aggregates. Real GDP is used when the question asks whether production has increased, because it removes the effect of price change. Nominal GDP is measured at current prices, so it rises with both output and prices. This makes nominal GDP useful for market-size comparisons, but it should not be treated as a direct welfare measure.

GDP measures domestic production. GNI adjusts income for net factor income from abroad, while NNI and per-capita income help compare welfare potential. PPP gives another view by valuing domestic purchasing capacity, so PPP comparisons can differ from nominal-dollar rankings. GFCF is important because it reflects capital formation and future productive capacity. Productivity indicators show whether the economy is getting more output from labour, capital and technology.

Exam takeaway: match the measure to the question; real GDP is for production growth, nominal GDP is for current-price size, and per-capita income is closer to welfare potential.

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