Predicting Indian GDP with Machine Learning: A Comparison of Regression Models

Abstract

In recent years, the application of machine learning algorithms in economic forecasting has gained significant traction. This study focuses on predicting the Gross Domestic Product (GDP) of India by harnessing advanced machine learning techniques. We assembled a comprehensive dataset incorporating time series analysis and inflation rates from diverse sources. Our investigation involved a comparative analysis employing both linear and polynomial regression methods to discern the most accurate predictive model. Our findings underscore the superiority of the polynomial regression model, which excelled in capturing non-linear relationships between independent variables and GDP. Specifically, the polynomial regression model achieved an impressive prediction accuracy rate of surpassing the accuracy achieved by the linear regression model. This study underscores the critical role of advanced machine learning algorithms in economic forecasting. By emphasizing the significance of high-quality datasets and the application of techniques like polynomial regression, we illustrate how these factors can substantially enhance the precision of economic forecasts. These insights hold substantial implications for policy makers and businesses alike, aiding informed decision-making and effective economic policy development. This study serves as a valuable reference for future research, highlighting the importance of advanced machine learning methods and robust data sources in economic forecasting.