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- Pratik Ghone
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÷

÷ Úhe gross domestic product (GDP) or gross

domestic income (GDI) is a basic measure of a
country's overall economic output. It is the
market value of all final goods and services
made within the borders of a country in a
financial year.
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÷ [alculating GDP is extremely important as the

performance of the economy is fixed by means
of this method. Úhe results would help the
country to forecast the economic progress,
determine the demand and supply, understand
the buying power of the people, the per capita
income, the position of the economy in the
global arena.
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÷ GDP may be an indicator of standard of living

as it is measured frequently, widely and
consistently.

÷ GDP is measured frequently in most countries

providing information on a quarterly basis,
which allows a user to spot trends regularly
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÷ . It is measured widely, therefore GDP is
available for almost every country in the world,
allowing comparisons to be made between
countries.

÷ GDP is often used as an indicator, on the

rationale that all citizens would benefit from
their country's increased economic production.
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÷ ) Product (or output) approach

÷ 2) Income Approach

÷ 3) Expenditure Approach


 


÷ csually in this approach the economy is broken
down into classes of enterprise: agriculture,
construction, manufacturing, etc. Úheir outputs
are estimated largely on the basis of surveys
regarding their Businesses.

÷ [alculated as:
÷ GDP = Gross Value added + Úaxes on Products
÷ - Subsidies on Products
 



÷ Another way of measuring GDP is to measure
total income. If GDP is calculated this way it is
sometimes called Gross Domestic Income
(GDI), or GDP(I)

÷ [alculated as:
÷ GDP = [ompensation of Employees+ Gross
Operating Surplus + Gross Mixed income +
taxes - subsidies on production and imports
 
  


[alculated as:
÷ GDP = [ + I + G + (X-M)

÷ GDP = [onsumption + Investment +

Government Spending + (exports-imports)

÷ Indian Economy is measured through this

Approach
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÷ India Gross Domestic Product (GDP) expanded

7.90% over the last 4 quarters.

÷ Úhe India Gross Domestic Product is worth 27

billion dollars or .96% of the world economy,
according to the World Bank.

÷ India's diverse economy encompasses traditional

village farming, modern agriculture, handicrafts,
a wide range of modern industries, and a
multitude of services.
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÷ Services in India are the major source of

economic growth, accounting for more than
half of India's output with less than one third of
its labor force.

÷ Úhe Indian economy has posted an average

growth rate of more than 7% in the decade
since 997, reducing poverty by about 0
percentage points.
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îEAR MAR Jc E SEPÚ DE[ AVERAGE

2009 5.80 6.0 7.90 6.60

2008 8.60 7.80 7.70 5.80 7.48

2007 9.80 9.20 9.00 9.30 9.33

2006 0.30 9.70 0.20 9.40 9.90

 

  


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÷ Agriculture and allied sectors like Forestry,
Logging and Fishing accounted for 6.6% of the
GDP in 2007.

÷ Industry and Services accounts for 54.6% of

the GDP

÷ Global Úrade accounted 20% of the GDP.