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Gross Domestic Product (GDP)

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Brief Info about Gross Domestic Product, its Function and Components.

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Gross Domestic Product (GDP)

  1. 1. Gross Domestic Product
  2. 2. What is GDP? • Gross domestic product (GDP) is a monetary measure of the value of all final goods and services produced in a period (quarterly or yearly). • Nominal GDP estimates are commonly used to determine the economic performance of a whole country or region, and to make international comparisons.
  3. 3. Components of GDP •Consumption (C) •Investment (I) •Government Spending's (G) •Net Exports (X – M)
  4. 4. To Calculate GDP
  5. 5. Consumption  It is Household Final Consumption Expenditure  It Includes • Durable Goods • Non-Durable Goods and • Services Eg: Food, House Holds, Medical Expenses, Rent, Jewellery, Gasoline, etc.
  6. 6. Investment  Investment by Business or Households in Capital.  It Includes • Construction of New Mine. • Purchase of Machinery or Equipment for Factory. • Purchase of software. • Expenditure on New Houses. • Buying Goods and Services.  Investments on Financial Products is not included in Investments.
  7. 7. Government Spending's  Total Government Expenditures on Final Goods and Services.  It Includes • Investment Expenditure by Government. • Purchases of weapons for Military. • Salaries of Public Servants. It does not include any transfer payments, such as social security or unemployment benefits.
  8. 8. Net Exports (X – M) Gross Exports (X) • All Goods and Services Produced for Overseas Consumption. Gross Imports(M) • Any Goods or Services Imported for Consumption.
  9. 9. Indian Economy-Facts on India GDP • Indian Economy is the 10th Largest Economy in the world. • India's GDP is Ranked 7th in GDP Global Ranking. • India is one of the most rapidly growing economies in the world. • The GDP of India in the Year 2015 was US $2183 Billion. • Ranks 3rd pertaining to Purchasing Power Parity (PPP) according to world bank. • The Growth Rate of India GDP in 2015 is 7.3%. • Per capita income in India is $1,820 at Nominal and $6,664 at PPP.
  10. 10. THANK YOU

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