How was the condition of GDP and its Formula?
The indian economy has seen many ups and downs between 2014 and 2025. During this period, India has faced important events like economic growth, policy changes, global economic conditions and the Kovid-19 epidemic.
What is GDP?
GDP, full name "Gross Domestic Product", is an important economic indicator that measures the economic activity of a country. It reflects the total monetary or market value of all goods and services produced within the borders of that country during a particular time period, usually a year. GDP is used to assess the health of the economy and is an important tool for policymakers, investors and analysts.
How is GDP calculated?
GDP can be measured in three major ways: expenditure method, production method and income method. The expenditure method includes all final consumption, investment, government spending and exports. The production method measures the value of the total production generated by all industries. The income method adds compensation to employees, taxes on production and other types of income.
What is the formula to measure GDP?
GDP=C+I+G+(X−M), where, C is consumption expenditure, investment, G is government expenditure, X is export, M is import. Let us tell you here that GDP is measured in two ways.
Nominal GDP: It is based on current market prices and includes the effect of inflation.
Real GDP: It is based on constant prices and adjusts for the effect of inflation.
Now know how GDP has fluctuated since the Modi government came to power
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