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GDP Deflator
The GDP deflator is the ratio of nominal GDP to real GDP. Unlike CPI, which tracks a household basket, it covers all goods and services produced, including those bought by businesses and government.
Why It Matters
When the deflator is low, strong real growth can coexist with weak growth in rupee incomes.
In India
In July–September 2025, India’s real GDP grew 8.2% while nominal GDP grew only about 8.7%, implying a deflator close to zero.
See it in the news
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