GDP Gross Domestic product :- All Details :- VPmarketing

GDP is market value of product and services produced by the country in a year

Sectors 

1 Agriculture

2 Industry

3 Services

Only Domestic product and services are counted in GDP

•      Exports are also counted for GDP

•      Imports are not counted for GDP

•      GDP tells you economic condition of the country

•       GDP of the Two countries are compared to check the performance of the country

•       How to increase the GDP of any country:

                If Indian people buy Indian products then GDP will grow

•       After WW II  Simon Kuznets between 1935 to 1940 used the term GDP

•       He was US economist

•       He was measuring US economy after the recession due to WW II

•       IMF first internationally used GDP to compare economic health of the countries

India is 2 trillion dollar economy

•       Which is 140 lacs crore Rs

•       India accounts for 2% of world GDP

•       Reasons for low GDP in India for India

•       Global decision US China trade war

•       Internal matters like low demand

•       Recession in Auto sector and Real Estate

•       Low demand in Rural area

•       Unemployment

•       How unemployment  helps slowdown in GDP

•       Due to unemployment most of the people are not generating income or not producing any product or services

•       Because of unemployment people cannot able to buy new products and services as their disposable income is less

•       Attrition in the industry

•       There are 3 types of Goods available

•       Finished goods

•       New products and services which can be consumed by the final customer

•       Intermediate goods

•       Which are used to produce final goods these are raw material for final goods

•       Capital goods

•       These are new products which help in introducing finished goods like tractor in agriculture

•       Income approach =

           Labour + land + capital + management

•       National income = Wages + Rent + Interest + Profit +Depreciation + Net foreign factor income

•       Net foreign factor income = Import  - Export

•       Expenditure approach

•       GDP = Consumption + Investment +Government expenditure + (Export  – Import )

•       Central statistics office (CSO) declares GDP numbers

India GDP decreased from 5.8 % to 5%

•       5% GDP is  lowest in last 6 years

•       GVA is calculated from supply side that is manufacturer side

•       GDP is calculated from demand side that is government expenditure and taxes included

•       In economy there are sectors like

•       Agriculture sector

•       Industry sector

•       Service sector

•       Employees working in in all the 3 sectors that is workers income constituted GD

•       Sub category of industry:= Manufacturing, Construction, Mining etc

•       GDP is 5% while GVA  is 4.9%

•       GVA Gross Value Added

•       Agriculture value added

•       Industry value added

•       Service value added

•       How much value added by each worker in production in the country

•       GDP is helpful in comparing countries economic health

•       When we want to compare sectors within country GVA  Gross value added product used

•       In 1950 India started using GDP as economic indicator

•       Suppose one Mobile  cost 1000 Rs. and if one country is preparing 100 mobile in a year then GDP is 100 into 1000 1,00,000 rupees

•       If one biscuit is is manufactured  at  10 Rs cost and if 2  Rs tax is applied on it total becomes 12 Rs