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The GDP growth provides an estimated economic value of a country and is also used to show the size and growth rate of the economy of India. The GDP rate of India is calculated based on the factor cost and the market prices. The factor cost method, also known as the economic activity method of India, takes measurements of the performance of eight different types of industries. The expenditure figure or the market price figure is made by adding the domestic expenditure in the various sites of expenditure. This study talks about the most important facts about the GDP rate of India.
S&P in GDP forecast of India
S&P is a global GDP rating system and S&P BSE SENSEX is the most tracked GDP index of India. The S&P BSE SENSEX makes the GDP growth chart by observing the thirty largest, financially sound, and most clarified companies across the key sectors of India. Another popular S&P equivalent in India is NIFTY 500, which is the first broad GDP index of India based on the stock market. The S&P stands for standard & poor and the NIFTY 500 are calculated using a methodology based on market capitalization, weight and float adjustment. According to the S&P global ratings, the GDP growth rate remained unchanged in the last financial year 2021-22. GDP growth projection was increased to 6 per cent from 5.7 per cent in India. The GDP growth forecast was at 9.5 per cent in FY22 and 7.8 per cent at the end of FY23. The key pressure point is the rising inflation in the prices in India.
Fitch rating in India’s GDP growth
The credit ratings, research, and commentaries for global capital marketing are represented by the Fitch ratings. The credit ratings are the opinions of the industry to fulfil their financial commitments. IDRs are implemented for sovereign entities, corporations, and financial institutions (banks, finance entities for the public, leasing companies, etc.) to look after the recovery expectations. The credit ratings refer to the indications of the likelihood of payments with the terms & conditions of the issuance. Fitch can apply additional terms or considerations for some limited cases for goods. Fitch Ratings also represent other scores, points and ratings like these ratings provide specialised ratings of residential & commercial services. This rating system also discloses the issues that are related to a rated issuer. It is expressed by using some categories like ‘AAA’, ‘BBB’, ‘BB’, ‘D’, etc. The ratings in this rating system are not facts and cannot be argued as being ‘accurate’ or ‘inaccurate’. The definition in each individual rating can be taken for guidance on the sides of risk included by the ratings.
A brief guide on GDP data
The economic environment of India forecasts that the GDP rate in India in 2019 was approximately 2.87 trillion U.S dollars. The annual GDP data is the sum of market values of all final goods & services in a year. The GDP for the last quarter of 2021 improved by 5.4 per cent according to the centre’s released data. In the past two quarters, the GDP increased to 20.3 and 8.5 per cent respectively. GDP growth during 2021-22 was increased to 8.9 per cent after a decline of 6.6 per cent during 2020-21. The centre projected 9.2 per cent GDP in the first advanced estimation released in January 2021.
Conclusion
The GDP of India through S&P is calculated by the following equation:
GDP=gross investment + government spending + private consumption + government investments + (export-import)
The price inflation is measured by the GDP deflator and the GDP data is calculated by multiplying the nominal GDP by a hundred and then dividing by the real GDP.
The GDP data of India has two types of GDP – the Real GDP and the Nominal GDP. The annual GDP estimation is published on May 31 of every year. The GDP chart represents the quality of life according to the economic perspective. Natural disasters can affect the growth in GDP as the covid pandemic affected the GDP growth in the past years.
