What is GDP and what is the GDP of India?

you may have ever heard that What is GDP (What is GDP in Hindi), Often you must have heard people talking about it and if you do not know anything about it, then in today’s post we will talk about it and know what is GDP and what is its full form And why is this important. In addition we will also know that What is the GDP of India in 2019.

There are many countries all over the world and every country wants to progress continuously and for this reason many types of industries are set up in the countries. Although the population is in every country and the goods used by them are also produced, but there are some such items which are not produced in their own country but are imported from abroad and the things which are produced in their own country. They are sold to other countries. That is why if they are exported, then the economy of another country comes to its own country. There are many such industries which are set up in our own country so that we can produce those things which are not available abroad and in this way we can export them and make way for development in our country.

People who come to know about it, they often keep on knowing that how much is the GDP of India right now. Because it indicates in a way that at what pace the progress of the country is happening. If it is increasing continuously then it means that the country is developing and if it is going down it means that the production or development of our country is falling down. So I think that every Indian must be aware of this and that is why I have written today’s post keeping this in mind and told that What is GDP (What is GDP in Hindi) And What is the GDP of India?

What is GDP – What is GDP in Hindi

The total value of all the things produced in the country is called GDP They say. It does not matter whether the goods or services are made by the government or citizens or are made by foreigners. If any goods or services are located within the borders of the country, then their production is included in the gross domestic product.

In this, to avoid double counting, the final value of production is included in the GDP, but it does not contain any Only the value of that is added to it. Now here you can understand that the shoe also has a lace, it also has a shoe, which is inserted separately, then the values ​​​​of the different parts are not taken, but the final product is the product. Only that price is taken.

Full Form of GDP – Full Form of GDP

Gross Domestic Product

Gross Domestic Product

Now the main thing to know here is that the prices of which products and services are calculated under Gross Domestic Product. Let me tell you that GDP includes all private and public consumption, government spending, investment, private inventory, construction expenses, the balance of foreign trade, that is, things that are exported are added and those that are imported are subtracted. Goes.

What is GNP – Gross National Product

GNP measures the overall output of the citizens of an economy which includes people living abroad. Whereas domestic production by foreigners has not been included in this. Although GDP is calculated annually but GNP is calculated once in 3 months.

Formula of GDP – What is the formula to calculate GDP?

In the component of GDP, personal consumption expenditure and business investment as well as government investment are added and with this the things exported are subtracted from imported things and then it is also added to others. It is easy to calculate a country’s GDP using this standard formula when you know what the components are.

GDP = C + I + G + (X – M)

GDP = private consumption + gross investment + government investment + government spending + (exports – imports).

C – Private consumption

I – Gross investment

G – Government investment

X – Exports

M – Imports

Types of GDP – Types of GDP in Hindi

nominal GDP

Nominal is the value of all those final products and services, which is the economy passed within 1 year. So it is calculated using the prices of the same year in which it is calculated. Nominal value in an economy is expressed as a quantitative term. For example, the nominal value can be changed on the basis of quantity and price.

Nominal Gross Domestic Product takes into account all the changes in all the goods that are produced within 1 year. If prices change from one person to the next and the final output does not change, even though output remains constant, the nominal GDP will change.

As we have understood that Nominal GDP is based on current market price hence all changes in nominal market prices will be included. Those that have happened during the current year due to currency position or now position. Inflation was defined as the increase in overall prices. The deflation position is defined as the fall in overall prices.

real GDP

Real GDP is an inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year. Which is expressed in base year prices and is often called the constant price. Apart from this, it is called “inflation corrected” “constant dollar GDP”. Can account for changes in real GDP and provide a more accurate figure of economic growth.

Importance of GDP

  • Gross Domestic Product is the best measure for an economy, with research and data improving statistics and the government trying to figure out ways to strengthen the Gross Domestic Product that the government tries to strengthen.
  • This includes consumer spending, investment spending, government spending and net exports, so it describes all expenditures of an economy as it gives investors a vision that can be compared to the level of GDP as an insight. Shows the trend of the economy.
  • In this case, each component is given importance in its relative price. In market economics or click prices, because both the marginal cost for the producer and that for the consumer are shown, i.e. people sell at a price that others are willing to pay.
  • It helps investors to manage their portfolio by providing guidance about the state of the economy.
  • The Gross Domestic Product of sugarcane provides with the general health of the economy. A negative gross domestic product growth portends bad signs for the economy. Economists analyze GDP to determine whether the economy is in recession or boom.

Benefits of GDP growth

Higher average incomes

It enables consumers to enjoy more goods and services and enjoy the 72 standard of living. Economic growth during the twentieth century was a major factor in reducing absolute levels of poverty and enabling law in life expectancy.

Lower unemployment

With higher production and positive economic growth, companies create more jobs so that more workers can be employed.

Lower government borrowing

Economic growth creates more tax revenues The problem of unemployment requires money to be spent. That’s why economic growth helps in reducing government borrowing. Economic growth also plays a role in reducing the debt to gross domestic product ratio.

Improved public services

With increased taxes, the government can spend more on public services such as national highways and education.

Money can be spent on protecting the environment

A society with real growth domestic report can promote more resources to promote recycling and use of renewable resources.

Investment

Economic growth encourages companies to invest to meet future demand High investment increases the scope for future economic growth Economic growth creates a virtual cycle of investment.

Increased research and development

Hi economic growth leads to increased profits for companies, which leads to higher spending on research and development, in addition, consistent economic growth instills confidence and encourages companies to take risks and innovate.

What is India’s GDP in 2019

What was the GDP growth rate of India at that time when I wrote this article? 5.8% was around. Right now this month, a lot of change has been seen in India’s economy and if we talk about immediate, it is now 5% It’s over.

in short

In today’s post we learned What is GDP (What is GDP in Hindi). Today we also learned What is the full form of GDP And why is this so important. In addition we also talked about What is the GDP of India in 2019, Friends, in today’s era, every country wants progress and tries to create more and more jobs to progress. Whenever the progress of a country is to be ascertained, its GDP is looked at and it is seen that how much it has improved or has fallen down. This gives an idea of ​​which country is developing and which country is not.

I think you now understand that what is GDP And what is its formula, if you have the data, then you can easily calculate it yourself, so friends, how did you like this post, we hope that you must have liked this post, if you have liked any, then share it with your friends. And share as much as possible in Facebook Twitter Instagram and WhatsApp with relatives.