GDP Full Form
The full form of GDP is Gross Domestic Product. Gross Domestic Product (GDP) is a monetary measure of the market value of all final goods and services produced in a period (quarterly or yearly) of time.
GDP measures the size of an economy and overall growth or decline in the economy of a country.
It indicates the economic health of a country as well as specifies the living standard of the people of a specific country.
The GDP gets affected due to several reasons including economic slowdown and international market.
With the increase of the GDP, the living standard of the people of that country increases.
A country having robust GDP is considered as a good country in terms of living standards.
In India, Central Statistic Office calculates the nation’s gross domestic product (GDP). India is the seventh-largest country by area, the second-most populous country in the world.
Several sectors contribute to GDP growth including industry, service sector, and agriculture and allied sectors.
There are many approaches to calculate GDP.
The equation for calculating GDP is:
GDP = private consumption + gross investment + government investment + government spending + (exports – imports).
Here, ‘gross” implies that the GDP measures production regardless of the various uses to which the product can be put.
- India’s GDP is calculated with two different methods- economic activity (at factor cost), and expenditure (at market prices).
- The factor cost method assesses the performance of eight different industries.
- The expenditure-based method indicates how different areas of the economy, such as trade, investments, and personal consumption, are performing.