FACTORS INFLUENCING INDIA'S GDP GROWTH: GOVERNMENT SPENDING, JOBLESSNESS, INFLATION, AND DOMESTIC CONSUMPTION

Abstract

This study investigates the primary elements that contribute to the expansion of India's gross domestic product (GDP), with a particular emphasis on government expenditure, jobs, inflation, and domestic consumption. Spending by the government is an essential component in the production of economic activity since it provides funds for various public services, social initiatives, and infrastructure expansion projects. Nevertheless, the influence that it has on growth needs to be weighed against the dangers that come with financial imbalances and inflation. Unemployment, also known as joblessness, has a considerable impact on the functioning of the economy. This is due to the fact that high unemployment rates lead to decreased consumer spending and can also result in increasing social inequality. On the other hand, economically, low unemployment rates are beneficial to economic growth since they increase consumer confidence and demand. A further important aspect is inflation, which has an impact on the spending power of consumers as well as the investment decisions of businesses. In spite of the fact that moderate inflation may be an indication of robust economic activity, inflation or deflation that is not under control can cause the economy to become unstable. One of the most important factors contributing to India's GDP development is domestic consumption, which is supported by the country's sizable and expanding middle class. The growth of businesses, the creation of new employment, and the contribution to the continued expansion of the economy are all supported by high levels of domestic consumption. It is the combination of these elements that results in a complex and interconnected environment that determines the path that India's economy will take. It is necessary to get an understanding of and effectively manage these components in order to foster growth that is both sustainable and inclusive in the country.