Upto 60% Off on UPSC Online Courses

Avail Now
  »   Blog   »   India to be a $ 7 Trillion

India to be a $ 7 Trillion Economy By 2030: CEA

PWOnlyIAS November 20, 2023 04:04 1298 0

Blogs UPSC Blogs

Context The chief economic advisor (CEA) has said that India will be a $ 7 trillion economy in the next seven years if the present growth rate is maintained.

India to be a $ 7 Trillion Economy By 2030: CEA

Current Statistics on India’s Economy

  • Present Status: Currently, India’s economy is the fifth-largest economy in the world and is poised to become the third-largest economy in a few years.
  • Upcoming Projections: If the present growth trajectory is maintained, the belief is that India will achieve a $ 7 trillion economy in seven years. 
  • RBI Estimation: According to the latest RBI estimates, India’s economy is expected to grow 6.5% this financial year, significantly lower than the 7.2% recorded in 2022-23. 
  • IMF Estimation: On the other hand, the International Monetary Fund (IMF) has projected growth of 6.3% every year till 2028.
  • India’s Economy Calculation:
    • The economic value of a country is estimated by calculating its Gross Domestic Product (GDP), which is the total value of all the goods and services produced in a country in one year.
    • GDP is the most common method employed by countries around the world to measure their economic health. 

How is India’s GDP calculated?

  • Expenditure Method for Calculating India’s GDP:
    • Key components of GDP growth:
      • Private consumption Spending (Private Final Consumption Expenditure or PFCE)
      • Government Expenditure (Government Final Consumption Expenditure or GFCE)
      • Private investments to boost the productive capacity of the economy (Gross Fixed Capital Expenditure)
      • Net exports of the country (Net Exports or NX)
    • GDP = private consumption + gross private investment + government investment + government spending + (exports – imports).
      • Private Consumption: It refers to spending by consumers. A high confidence level in the economy indicates that consumers are willing to spend, while a low confidence level reflects an unwillingness to spend.
      • Government Spending: It refers to the government spending money on equipment, infrastructure, and payroll. Government spending is critical when consumer spending and business investment both decline sharply.
      • Private Investment: It refers to private businesses spending money to invest in their business activities. 
      • Next Exports: It refers to the goods and services that an economy makes that are exported to other countries.
  • The Output-Based Method for Calculating India’s GDP:
    • This method calculates the total value of economic output and deducts the costs of the intermediate goods that are consumed in the process.
  • The Income Method for Calculating India’s GDP: It is an intermediate method that calculates the income earned by all the factors of production in an economy, including the wages paid to labor, the rent earned by land, the return on capital in the form of interest, and corporate profits. 
    • It deducts some of the items that are not considered payments made to factors of production, such as sales tax and property tax.
    • It adds depreciation, which is a reserve that businesses set aside to account for the replacement of equipment, to the income of the nation.

Latest List of GDP Numbers

  • United States of America: It is the richest country in terms of GDP with a value of $26.95 Trillion. 
  • China: The GDP value of China is $17.9 trillion. It is poised to overtake the US sometime in the future.
  • Germany: With a GDP value of $4.4 trillion, Germany occupies 3rd position in the list.
  • Japan: The country of Japan has a GDP value of $4.24 trillion.
  • India: There is a belief that India has currently achieved $4 trillion in GDP value.  
Must Read
NCERT Notes For UPSC UPSC Daily Current Affairs
UPSC Blogs UPSC Daily Editorials
Daily Current Affairs Quiz Daily Main Answer Writing
UPSC Mains Previous Year Papers UPSC Test Series 2024

 

Print Friendly, PDF & Email

7 Trillion Economy FAQs

There is a belief that India has recently achieved $4 trillion in GDP value recently. However, there is no official word about it.

The economic value of a country is estimated by calculating its Gross Domestic Product (GDP), which is the total value of all the goods and services produced in a country in one year.

There are three methods of calculating GDP—the expenditure method, the income method, and the output-based method.

GDP is calculated using the formula: GDP = private consumption + gross private investment + government investment + government spending + (exports – imports).

The United States of America is the richest country in terms of GDP with a value of $26.95 Trillion.

Recommended For You

July 25, 2024
UPSC EPFO Interview 2024 Date, Marks, & Result
July 25, 2024
UPSC EPFO Eligibility Criteria 2025, Qualification, & A...
July 25, 2024
APJ Abdul Kalam Death Anniversary: Missile Man of India
July 25, 2024
Kargil Vijay Diwas 2024, History and Importance of Vijay Diw...
July 25, 2024
World Hepatitis Day 2024: History, Theme, Government Initiat...
July 25, 2024
International Tiger Day 2024, Theme of World Tiger Day, 29th...
/*

Latest Comments

*/

Live Blog

Recent posts

July 25, 2024
UPSC EPFO Interview 2024 Date, Marks, & ...
July 25, 2024
UPSC EPFO Eligibility Criteria 2025, Qualific...
July 25, 2024
APJ Abdul Kalam Death Anniversary: Missile Ma...
July 25, 2024
Kargil Vijay Diwas 2024, History and Importan...
July 25, 2024
World Hepatitis Day 2024: History, Theme, Gov...

Archive Calendar

Mon Tue Wed Thu Fri Sat Sun
 1
2345678
9101112131415
16171819202122
23242526272829
3031  

by month

Need help preparing for UPSC or State PSCs?

Connect with our experts to get free counselling & start preparing

THE MOST
LEARNING PLATFORM

Learn From India's Best Faculty

# #
      
Subscribe our Newsletter
Sign up now for our exclusive newsletter and be the first to know about our latest Initiatives, Quality Content, and much more.
*Promise! We won't spam you.
Yes! I want to Subscribe.

Contact Details

G-Floor,4-B Pusha Road, New Delhi, 110060

Download Our App

# #

 Final Result – CIVIL SERVICES EXAMINATION, 2023.   Udaan-Prelims Wallah ( Static ) booklets 2024 released both in english and hindi : Download from Here!     Download UPSC Mains 2023 Question Papers PDF  Free Initiative links -1) Download Prahaar 3.0 for Mains Current Affairs PDF both in English and Hindi 2) Daily Main Answer Writing  , 3) Daily Current Affairs , Editorial Analysis and quiz ,  4) PDF Downloads  UPSC Prelims 2023 Trend Analysis cut-off and answer key

THE MOST
LEARNING PLATFORM

Learn From India's Best Faculty

# #
      
Follow Us:
Subscribe our Newsletter
Sign up now for our exclusive newsletter and be the first to know about our latest Initiatives, Quality Content, and much more.
*Promise! We won't spam you.
Yes! I want to Subscribe.

Contact Details

Download Our App

# #

 Final Result – CIVIL SERVICES EXAMINATION, 2023.   Udaan-Prelims Wallah ( Static ) booklets 2024 released both in english and hindi : Download from Here!     Download UPSC Mains 2023 Question Papers PDF  Free Initiative links -1) Download Prahaar 3.0 for Mains Current Affairs PDF both in English and Hindi 2) Daily Main Answer Writing  , 3) Daily Current Affairs , Editorial Analysis and quiz ,  4) PDF Downloads  UPSC Prelims 2023 Trend Analysis cut-off and answer key
Quick Revise Now !
AVAILABLE FOR DOWNLOAD SOON
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध
Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

<div class="new-fform">







    </div>

    Subscribe our Newsletter
    Sign up now for our exclusive newsletter and be the first to know about our latest Initiatives, Quality Content, and much more.
    *Promise! We won't spam you.
    Yes! I want to Subscribe.