Question

What is GDP ? Who measures GDP in india and how ? What is its importance

Answer 1

Dear student,

GDP (Gross Domestic Product) stands for value of all products and services, in monetary values, produced in a specific country in a specific time of period. Generally, it is calculated on an annual basis. It includes the sum of all private and public entities, outlays by the government's exports and deduction of imports. GDP of a country indicates its economic well-being. Higher the GDP, better would be the standards of living of the country's people.

Ministry of Statistics and Program Implementation is responsible for calculation of GDP in India.

Gross Domestic Product (GDP)
The monetary value of all the finished goods and services produced within a country 's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.

GDP = C + G + I + NX
" C " is equal to all private consumption, or consumer spending, in a nation 's economy
" G " is the sum of government spending
" I " is the sum of all the country 's businesses spending on capital
" NX " is the nation 's total net exports, calculated as total exports minus total imports. (NX = Exports - Imports)

GDP per capita is often considered as an indicator of a country's standard of living.

Regards