The document discusses GDP growth rates in India and other countries. It provides context on how GDP is used to measure a country's economy. Specifically, it notes that India's GDP growth rate was 2.4% in 2020, while the US was -3.7% and Russia and China were also negative. It defines GDP as the total monetary value of goods and services produced within a country in one year. GDP gives policymakers information to analyze the economy and impact of policies, but it also has limitations in accuracy between countries.

1. FINANCIAL AWARENESS OF GDP GROWTH RATE OF INDIA
Introduction to GDP:
The modern concept of GDP was first developed in by Simon Kuznets
for a US Congress report in 1934. After the Bretton woods conference
in 1944, GDP Became the main tool for measuring a country,s
economy.
The term GDP (Gross domestic product) growth rate refers to its
normally used while referring to the economic growth of countries.
Most politicians, journalists, economists, etc. keep stressing on the
GDP growth rate of India while Talking about the economic growth of
the country.
GDP GROWTH RATE OF INDIA AND OTHER COUNTRIES
Country GDP
INDIA 2.4%
USA -3.7%
RUSSIA -3.8%
CHINA 1.3%
The economic growth is increase in a country’s net output i.e the
production of goods & services. It gives an accurate idea of how fast a
country economy is growing or developing.
Meaning and Definition of GDP:
GDP Means “The monetary value of the total goods & services
produced within a country’s territory in one year is called GDP (gross
domestic product)of the country”.
It is one of the primary indicators used to gauge the health of a
country’s economy.

2. FINANCIAL AWARENESS OF GDP GROWTH RATE OF INDIA
DEFINITION: According to “Economic Times”
“GDP is the final value of the goods & services produced within the
geographic boundaries of a country during a specified period of time
normally a year”.
 The GDP can be estimated in three ways, they are as follows:
1. Expenditure basis: How much money was spent,
2. Output basis: How many goods & services were sold,
3. Income basis: How much income (profit) was earned.
Importance of GDP:
 GDP gives an overall picture of the country’s economic system,
 GDP enables policymakers & central banks to judge whether the
economy is expanding,
 GDP allow economists and business to analyze the impact of
such variables as monetary and fiscal policy,
 It controls the economic shocks such as a spike in oil price, as
well as tax spending plans on the overall economy.
 Along with better informed policies to national economy.

3. FINANCIAL AWARENESS OF GDP GROWTH RATE OF INDIA
Limitations of GDP:
 Poor countries have limited resources to update national
accounts,
 Data is not updated uniformly among countries,
 No accurate measures of shadow banking,
 Outdated accounting standards that differ from country to
country,
 Interference by governments in outcome.
Conclusion:
Gross Domestic Product (GDP) measures both total income and total
expenditure on the economy’s output of goods & services. Normally
GDP is the sum of consumption, investment, government purchases,
and net exports. Overall the prices can be measured by GDP for more
focusing & control the unemployment rate to increase in growth rate
of real GDP in the country.
Submitted by: VIKKI S/O SANJUKUMAR
MASTER OF COMMERCE (FINANCE)
GOVT FIRST GRADE P.G. COLLEGE HUMNABAD