The full form of GDP is Gross Domestic Product, and the GDP is defined as the market value of all the final goods and services produced in a fiscal year or a financial year of a country. Basically, GDP indicates the economic performance of a country during that fiscal year. In India, the contributions to GDP are mainly from 3 major sectors they are Agriculture allied service sector, Industry sector, and service sector.Sponsored Links
How to Determine GDP?
There are 3 ways to determine the GDP of a country they are:
Output method or Production method:
GDP = Gross value of output – Value of Intermediate Consumption
The output method is the most simple and direct method for determining the GDP. In this method, each and every class outputs are measured i.e. measures the monetary value of all the goods and services produced in that year.
In the income method, the total income earned by the factors of production are measured for a financial year in a country. Or Measures GDP by adding incomes that firms pay households for factors of production they hire – wages for labour, interest for capital, rent for land and profits for entrepreneurship.
By using this method, the total expenditure incurred by all the entities on goods and services in a financial year are measured. Measuring the total expenditure used to buy things is one of the best ways of measuring production.Sponsored Links
Economy of India:
The Indian economy is characterized as the developing economy, based on the normal GDP India is the world’s 5th largest economy, and based on the PPP (purchasing power parity) India is the third largest economy globally. Historically, India was the largest economy globally from 1st century to 19th century. The long-term growth perspective of the Indian economy remains positive due to its young population and corresponding low dependency ratio, healthy savings and investment rates, and is increasing integration into the global economy. During the years 2014 to 2018 India was the fastest growing economy in the world.
Top 10 Economies in the World 2020:
The following list based on the IMF’s World Economic Outlook 2019
No1: United States
U.S. Nominal GDP: $21.44 trillion – U.S. GDP (PPP): $21.44 trillion
China Nominal GDP: $14.14 trillion – China GDP (PPP): $27.31 trillion
Japan Nominal GDP: $5.15 trillion- Japan GDP (PPP): $5.75 trillion
Germany Nominal GDP: $3.86 trillion – Germany GDP (PPP): $4.44 trillion
India Nominal GDP: $2.94 trillion-India GDP (PPP): $10.51 trillion
No6: United Kingdom
U.K. Nominal GDP: $2.83 trillion – U.K. GDP (PPP): $3.04 trillion
France Nominal GDP: $2.71 trillion – France GDP (PPP): $2.96 trillion
Italy Nominal GDP: $1.99 trillion – Italy GDP (PPP): $2.40 trillion
Brazil Nominal GDP: $1.85 trillion – Brazil GDP (PPP): $3.37 trillion
Canada Nominal GDP: $1.73 trillion – Canada GDP (PPP): $1.84 trillionSponsored Links