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23 Dec 2025·Source: The Indian Express
2 min
EconomyNEWS

India's GDP Growth Projected at 7.8% in November, Shows Strong Momentum

India's GDP is projected to grow by 7.8% in November, indicating robust economic momentum.

India's GDP Growth Projected at 7.8% in November, Shows Strong Momentum

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India's Gross Domestic Product (GDP) is projected to grow by 7.8% in November, according to the latest economic indicators. This robust growth rate signals strong economic momentum, driven by factors such as increased manufacturing activity, resilient services sector, and healthy domestic demand.

The data reinforces the narrative of India being a bright spot in the global economy, despite international headwinds. This figure is crucial for understanding the current health of the Indian economy and its trajectory for the fiscal year.

Key Facts

1.

India's GDP projected to grow by 7.8% in November

2.

Driven by manufacturing, services, domestic demand

3.

Reinforces India as a global bright spot

UPSC Exam Angles

1.

Understanding GDP calculation methods and components (expenditure, income, production).

2.

Distinction between GDP and GVA, and their relevance.

3.

Role of different economic sectors (agriculture, industry, services) in India's growth story.

4.

Impact of domestic demand, investment, and government spending on economic growth.

5.

Analysis of economic indicators beyond GDP (e.g., PMI, IIP, inflation, fiscal deficit).

6.

Challenges to sustaining high growth (inflation, fiscal prudence, global slowdown, employment generation).

7.

Government policies (fiscal and monetary) aimed at fostering economic growth and stability.

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Background

Gross Domestic Product (GDP) is a fundamental measure of a country's economic activity, representing the total monetary value of all finished goods and services produced within a country's borders in a specific time period. In India, GDP data is crucial for policy formulation, investment decisions, and understanding the overall health of the economy.

Historically, India has aimed for high growth rates to uplift its large population and achieve developed nation status. The measurement of GDP involves various methods, primarily the expenditure method and the income method, often complemented by Gross Value Added (GVA) which measures output less intermediate consumption.

Latest Developments

The news highlights a projected GDP growth of 7.8% for November, indicating strong economic momentum. This robust performance is attributed to key sectors like manufacturing, which has seen increased activity, and a resilient services sector, traditionally a major contributor to India's economy.

Healthy domestic demand further fuels this growth, suggesting strong internal consumption and investment. This projection positions India as a 'bright spot' in the global economy, especially significant given the prevailing international headwinds such as geopolitical tensions, supply chain disruptions, and inflationary pressures in other major economies.

Practice Questions (MCQs)

1. Consider the following statements regarding the measurement of India's Gross Domestic Product (GDP): 1. The expenditure method of calculating GDP includes private consumption, government expenditure, investment, and net exports. 2. Gross Value Added (GVA) is calculated by adding indirect taxes and subtracting subsidies from GDP. 3. The services sector consistently contributes the largest share to India's GVA. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.1 and 3 only
  • C.2 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: B

Statement 1 is correct. The expenditure method sums up all spending on final goods and services: C (Consumption) + I (Investment) + G (Government Spending) + (X-M) (Net Exports). Statement 2 is incorrect. GDP at market price = GVA at basic price + (Indirect Taxes - Subsidies). Therefore, GVA = GDP - (Indirect Taxes - Subsidies). Statement 3 is correct. The services sector has been the largest contributor to India's GVA for several decades, followed by the industrial and agricultural sectors.

2. In the context of India's economic growth and global headwinds, which of the following factors is NOT typically considered a 'headwind' for a developing economy like India?

  • A.Persistent global inflation leading to higher import bills for crude oil.
  • B.Slowdown in major export markets impacting demand for Indian goods and services.
  • C.Strengthening of the domestic currency against major global currencies like the US Dollar.
  • D.Geopolitical conflicts disrupting global supply chains and increasing commodity prices.
Show Answer

Answer: C

A 'headwind' refers to a factor that impedes or slows down economic growth. Options A, B, and D are all typical headwinds: higher import bills (A) worsen current account deficit and fuel domestic inflation; export slowdown (B) reduces external demand; geopolitical conflicts (D) disrupt trade and increase costs. Option C, a strengthening domestic currency, generally makes imports cheaper and can help curb imported inflation. However, it also makes exports more expensive, potentially hurting export competitiveness. While it has mixed effects, it is not universally or primarily considered a 'headwind' in the same negative sense as the other options, especially when considering its potential to reduce import costs for a net importer like India.

3. Which of the following statements correctly describes the 'Purchasing Managers' Index (PMI)' in the context of economic indicators?

  • A.PMI measures the total value of goods and services produced by the manufacturing sector in a given month.
  • B.A PMI reading above 50 generally indicates an expansion in the manufacturing or services sector compared to the previous month.
  • C.PMI is primarily used to track government expenditure and its impact on economic growth.
  • D.The PMI for India is compiled and released by the National Statistical Office (NSO).
Show Answer

Answer: B

Statement B is correct. PMI is an indicator of the economic health of the manufacturing and services sectors. A reading above 50 indicates expansion, while a reading below 50 indicates contraction. Statement A is incorrect; PMI is a survey-based indicator of sentiment and activity, not a measure of total value. Statement C is incorrect; PMI focuses on private sector activity, not government expenditure. Statement D is incorrect; PMI for India is compiled by S&P Global (formerly IHS Markit) based on surveys of purchasing managers.

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