Gross Domestic Product of India

8/9/2019 Gross Domestic Product of India

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GROSS DOMESTIC

PRODUCT

GDP

- Pratik Ghone


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GDP DEFINITION :

The gross domestic product (GDP) or gross

domestic income (GDI) is a basic measure of acountry's overall economic output. It is the

market value of all final goods and services

made within the borders of a country in a

financial year.


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WHY IS GDP CALCULATED?

Calculating GDP is extremely important as the

performance of the economy is fixed by means

of this method. The results would help thecountry to forecast the economic progress,

determine the demand and supply, understand

the buying power of the people, the per capita

income, the position of the economy in the

global arena.


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GDP & STANDARD OF LIVING

GDP may be an indicator of standard of living

as it is measured frequently, widely and

consistently.

GDP is measured frequently in most countries

providing information on a quarterly basis,which allows a user to spot trends regularly


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GDP & STANDARD OF LIVING

. It is measured widely, therefore GDP is

available for almost every country in the world,

allowing comparisons to be made betweencountries.

GDP is often used as an indicator, on therationale that all citizens would benefit from

their country's increased economic production.


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GDP CAN BE CALCULATED

IN THREE WAYS:

1) Product (or output) approach

2) Income Approach

3) Expenditure Approach


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PRODUCT APPROACH

Usually in this approach the economy is brokendown into classes of enterprise: agriculture,construction, manufacturing, etc. Their outputs

are estimated largely on the basis of surveysregarding their Businesses.

Calculated as:

GDP = Gross Value added + Taxes on Products

- Subsidies on Products


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INCOME APPROACH

Another way of measuring GDP is to measuretotal income. If GDP is calculated this way it is

sometimes called Gross Domestic Income(GDI), or GDP(I)

Calculated as:

GDP = Compensation of Employees+ GrossOperating Surplus + Gross Mixed income +taxes - subsidies on production and imports


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EXPENDITURE APPROACH

Calculated as:

GDP = C + I + G + (X-M)

GDP = Consumption + Investment +

Government Spending + (exports-imports)

Indian Economy is measured through this

Approach


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INDIAN GDP

India Gross Domestic Product (GDP) expanded7.90% over the last 4 quarters.

The India Gross Domestic Product is worth 1217billion dollars or 1.96% of the world economy,according to the World Bank.

India's diverse economy encompasses traditionalvillage farming, modern agriculture, handicrafts,a wide range of modern industries, and amultitude of services.


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INDIAN GDP

Services in India are the major source ofeconomic growth, accounting for more thanhalf of India's output with less than one third of

its labor force.

The Indian economy has posted an average

growth rate of more than 7% in the decadesince 1997, reducing poverty by about 10percentage points.


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INDIAN GDP GROWTH RATE

GRAPH


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INDIAN GDP GROWTH RATE

TABLE

YEAR MAR JUNE SEPT DEC AVERAGE

2009 5.80 6.10 7.90 6.60

2008 8.60 7.80 7.70 5.80 7.48

2007 9.80 9.20 9.00 9.30 9.33

2006 10.30 9.70 10.20 9.40 9.90


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ECONOMIC SECTORS

CONTRIBUTING TO GDP IN

INDIA

Agriculture and allied sectors like Forestry,

Logging and Fishing accounted for1

6.6% of theGDP in 2007.

Industry and Services accounts for 54.6% ofthe GDP

Global Trade accounted 20% of the GDP.

Documents

Gross Domestic Product of India