- GDP explains 'Gross Domestic Product'
GDP = C + G + I + NX
"C" is equal to all private consumption, or
consumer spending, in a nation's economy
"G" is the sum of government spending
"I" is the sum of all the country's businesses
spending on capital
"NX" is the nation's total net exports, calculated
as total exports minus total imports. (NX = Exports - Imports)
GDP is defined as total market value of all final goods and
services produced within a country in a specific period of time, though GDP is
usually calculated on an annual basis. GDP is commonly used as an indicator of
the economic health of a country, over and above to measure a country's
standard of living. It comprises all of private and public consumption,
government outlays, investments and exports less imports that occur within a
defined territory. GDP is like a price tag on a country's output, and it
measures the size of the economy.
In 2012, India’s GDP was
worth 1841.70 billion US dollars, which is 2.97 % of the world economy,
reported by the World Bank Group. Each initial GDP report will be revised twice
before the final figure is settled upon. Significant revisions to the advance
number can cause additional ripples through the markets. The GDP numbers are
reported in two forms: current dollar (GDP is calculated using today's dollars makes
comparisons between time periods difficult because of the effects of inflation)
and constant dollar (Constant dollar GDP solves this problem by converting the
current information into some standard era dollar).
It is important to differentiate Gross Domestic Product from
Gross National Product (GNP). Gross National Product represents the total
market value of all finished goods & services produced in a year by a
country's residents - whether within the country or outside.
Gross National Product represents the total market value of
all finished goods & services produced in a year by a country's residents -
whether within the country or outside. To see how the nationals of a country
are doing economically.
- GDP on a PPP(purchasing power parity) basis
When comparing GDP levels crosswise countries, the standard
metric is to evaluate per capita GDP - GDP per individual - which is an open
approximation of income per individual in each country. to facilitate this
comparison, all GDP data in respective currencies is re-stated in a single
currency - the US dollar and is divided by the population of the country.
India's GDP per capita is thus pegged at $ 1,704. This means that on average,
an Indian earns $ 1,704 in a year - or Rs. 93,720 (1 US$ = Rs.55).
If your currency in the international markets depreciates
due to a current account deficit or other factors, it may not necessarily mean
you became correspondingly poorer in terms of your ability to buy your daily
goods and services, most of which are produced locally and are thus less
influenced by currency movements.
Comparison between US states and countries' nominal Gross Domestic Product 2012
Country
|
NOMINAL GDP 2012
|
Agriculture
|
Industry
|
Services
|
||
World
|
|
5.90%
|
30.50%
|
63.60
|
||
USA
|
15,684,750
|
1.2
|
19.1%
|
79.7%
|
||
China
|
8,227,040
|
10.10
|
45.3%
|
44.6%
|
||
Japan
|
5,963,969
|
1.2%
|
27.5%
|
71.4%
|
||
Germany
|
3,400,579
|
0.8%
|
28.1%
|
71.1%
|
||
France
|
2,608,699
|
1.9%
|
18.3%
|
79.8%
|
||
U K
|
2,608,699
|
1.9%
|
18.3%
|
79.8%
|
||
Brazil
|
2,395,968
|
5.4%
|
27.4%
|
67.2%
|
||
Russia
|
2,021,960
|
3.9%
|
36%
|
60.1%
|
||
Italy
|
2,014,019
|
2%
|
24.2%
|
73.8%
|
||
India
|
18,24,832
|
17.00%
|
18%
|
65.00%
|
||
Canada
|
1,819,081
|
1.8%
|
28.6%
|
69.6%
|
||
Australia
|
1,542,055
|
4%
|
26.6%
|
69.4%
|
||
Spain
|
1,340,266
|
3.3%
|
24.2%
|
72.6%
|
||
