Gross domestic product (GDP) is a monetary measure of the value of all final goods and services produced in a country or region over a period of time. GDP is calculated by totaling consumption, investment, government spending, and net exports. Consumption includes spending on durable goods, non-durable goods, and services by households. Investment includes business and household capital expenditures. Government spending consists of government purchases of goods and services but not transfer payments. Net exports are calculated as exports minus imports of goods and services. India has one of the fastest growing economies in the world, with a GDP of $2183 billion in 2015 and a growth rate of 7.3% that year.

1. Gross Domestic Product

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. Components of GDP
•Consumption (C)
•Investment (I)
•Government Spending's (G)
•Net Exports (X – M)

4. To Calculate GDP

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. 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. 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. 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. 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.

13. THANK YOU