Q2 FY2026 GDP Growth Data Released
In News
What Happened
Why It Matters
Background
History & Context
What Changed
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Real GDP Trend: BEFORE this quarter, growth had experienced slight moderation, but NOW it has sharply rebounded to a six-quarter high of 8.2 percent.
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Growth Drivers: BEFORE, post-pandemic economic momentum was largely sustained by government capital expenditure, but NOW private domestic consumption and manufacturing have taken over as the primary drivers.
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Inflation Impact: BEFORE, periods of high inflation resulted in a massive gap between nominal and real GDP numbers, whereas NOW the gap is exceptionally narrow (8.7 percent vs 8.2 percent), pointing to a very low GDP deflator.
Prelims Angle
NCERT Connection
Practice Questions
Q1
With Reference ToWith reference to India's National Income Accounting and the GDP Deflator, consider the following statements: 1. Real GDP is evaluated at current prices whereas Nominal GDP is evaluated at constant base-year prices. 2. A narrow percentage gap between Real GDP growth and Nominal GDP growth rates indicates a low GDP deflator. Which of the statements given above is/are correct?