GDP Full Form: GDP refers to a nation’s total output. The GDP of that nation is the total output that occurs in the areas of agriculture, manufacturing, and services. The GDP of a country’s economy is calculated by adding up all the goods and services that will be available there in a year and pricing them appropriately.
GDP Full Form
GDP full form is a Gross Domestic Product. For illustration, let’s imagine that India only manufactures one commodity, a pen. India’s Economy would be 200 rupees if 10 pens costing 20 rupees each were produced annually.
In other terms, we can define GDP as the total annual output of a nation. We can readily assess the nation’s economy and progress with the aid of GDP. GDP, also known as the development rate, reveals a nation’s financial health.
History Of GDP
When American economist Simon Kuznets delivered the National Income Report from 1929 to 1934 to the American Parliament, the US started calculating its GDP.
For the first time, he included the worth of each good and service offered in the nation in this report. Since 1950, GDP has been used to assess the economy in India as well.
How is GDP determined?
Most nations in the world today use a standard formula to compute GDP and use it to determine their own country’s GDP in accordance.
GDP = C + I + G + (X – M)
here c stands for- Consumption(all private consumer spending within nation economy)
I stand for the sum of a country’s investment
G stands for – total government expenditure
X stands for – the total export of the country
M stands for – total imports of the country
or, to put it another way, we can apply this algorithm
GDP is calculated as total government expenditure plus total government spending plus total private consumption (exports – imports). Please be aware that variations in quantity and price result in changes in nominal value.
Apart from agriculture, industry, and services, the amount of products exported or imported into a nation has the biggest influence on its GDP calculation.
For instance, if we purchase a Chinese-made item in India, the cost of that purchase will be added to China’s GDP computation, which will have a negative effect on India’s GDP calculation.
India’s GDP is calculated once every three months, and it is then compared to the prior quarter to determine how much has changed. India has one of the greatest GDPs and one of the world’s fastest-growing economies.
The present GDP of India is close to two lakh crores rupees, or more than 2% of the global GDP. India’s GDP growth in 2019–20 has been very near to 5%.
The Central Statistics Office (CSO), an arm of the Ministry of Static and Program Execution, is in charge of calculating the GDP in India.
Cons of Calculating GDP
Many analysts think that India’s and many other nations’ GDP calculations have a number of flaws that need to be fixed. Some of these flaws are as follows:
- Black money is not currently taken into account when calculating GDP.
- A company’s income is not included in the GDP if it earns money in another nation.
Only economic factors—not factors relating to societal standing or living conditions—are taken into account when calculating GDP.
Children’s health and educational standards are also not included in the GDP computation.
a few additional commonly used complete forms of GDP Gross Domestic Product
Gateway Detection Protocol (GDP)
Graduate Development Program (GDP)
What do GDP means?
gross domestic product
What is called GDP of India?
Gross domestic product (GDP) is the single standard indicator used across the globe to indicate the health of a nation’s economy
How is GDP calculated?
GDP = private consumption + gross private investment + government investment + government spending + (exports – imports).