GDP stands for gross domestic product and measures the total value of goods and services produced within a country's economy over a period of time. It has three main components: consumption, investment, and government spending. GDP is a key indicator used by governments and economists to evaluate the economy and make policy decisions. An increase in GDP signifies economic growth, while a decrease indicates economic contraction. Various financial products like mutual funds, stocks, insurance, bonds, and treasury bills play a role in impacting GDP by facilitating investment, savings, and growth.

2. DEFINITION OF GDP
The total value of output of
goods and services produced
within an economy in a given
period of time.

3. COMPONENTS OF GDP

4. KEY CONCEPTS OF GDP
To measure economic activity, one
needs a meaningful aggregation
of all kinds of productions. It
includes
1)Effective demand
2)Production capabilities
3)Income

5. SIGNIFICANCE OF
GDP
oGDP is used as an indicator for most
governments and economic decision-makers for
planning and policy.
oGDP helps the investors to manage their
portfolios by providing them with guidance about
the state of the economy.
oGDP is a major economic barometers that heavily
influence the pace of growth or contraction in a
country.

6. INCREASE IN GDP LEADS
TO……………….
ECONOMIC GROWTH
• Economic growth is the increase in
value of the goods and services
produced by an economy over a period
of time.
•It is conventionally measured as the per
cent rate of increase in real GDP.
•Growth is usually calculated after
considering the inflation on the price of
goods and services.
•Increase in employment opportunity is
also a factor of economic growth.

7. FINANCIAL PRODUCTS
Financial products refer to instruments
that help you save, invest, get insurance
or get a mortgage. These are issued by
various banks, financial institutions,
stock brokerages, insurance providers,
credit card agencies and government
sponsored entities.

8. FINANCIAL PRODUCTS AND GDP
Financial products plays a major
role in fluctuations in the rate of
GDP. Economic growth is mainly
based on the increasing rate of
GDP. The main financial products
that will increase GDP in the
present scenario are
1. Mutual funds
2. Stock Market
3. Insurance
4. Fixed Deposits
5. Treasury Bills
MUTUAL
FUNDS
STOCK
MARKET
INSURANC
E
FIXED
DEPOSITS
TREASURY
BILLS

9. MUTUAL FUNDS
A mutual fund is an institutional
device through which investors pool
their funds and invest the same in
capital market instruments such as
shares, debentures etc. It is a
collective form of investment.

10. STOCK MARKET
A stock market or equity market is
the aggregation of buyers and sellers
of stocks or shares. These may
include securities listed on a stock
exchange as well as those only traded
privately.

11. INSURANCE
Insurance product is a contract entered
into by an insurer and insured that
provides relief to the insured on the
occurrence of an unforeseen incident
involving loss of life or property of the
insured in return of premium.

12. FIXED DEPOSITS
A fixed deposit (FD) is a type of deposit
made with the bank for a fixed period of
time. Customers get a higher rate of
interest than regular savings account.
Period of these deposits can be from 7
days to 10 years.

13. Treasury Bills [ T-Bills]
Treasury bills are short term
borrowings of the Government.
It enjoys higher degree of
liquidity. T-bills can be issued
only by central government.
These are available for a
minimum amount of Rs. 25000
and multiples of 25000.

14. The GDP is the most important
indicator on the health of a
country’s economy. GDP is a
board measurement of a nation’s
overall economic activity.