(Translated by https://www.hiragana.jp/) What is Gross Domestic Product? Definition of Gross Domestic Product, Gross Domestic Product Meaning - The Economic Times
Definition: GDP is the final value of the goods and services produced within the geographic boundaries of a country during a specified period of time, normally a year. GDP growth rate is an important indicator of the economic performance of a country.
Description: It can be measured by three methods, namely,
1. Output Method: This measures the monetary or market value of all the goods and services produced within the borders of the country. In order to avoid a distorted measure of GDP due to price level changes, GDP at constant prices o real GDP is computed. GDP (as per output method) = Real GDP (GDP at constant prices) – Taxes + Subsidies.
2. Expenditure Method: This measures the total expenditure incurred by all entities on goods and services within the domestic boundaries of a country. GDP (as per expenditure method) = C + I + G + (X-IM) C: Consumption expenditure, I: Investment expenditure, G: Government spending and (X-IM): Exports minus imports, that is, net exports.
3. Income Method: It measures the total income earned by the factors of production, that is, labour and capital within the domestic boundaries of a country. GDP (as per income method) = GDP at factor cost + Taxes – Subsidies.
In India, contributions to GDP are mainly divided into 3 broad sectors – agriculture and allied services, industry and service sector. In India, GDP is measured as market prices and the base year for computation is 2011-12.
GDP at market prices = GDP at factor cost + Indirect Taxes – Subsidies
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India's GDP hits 15-month low of 6.7% in Q1FY25India's gross domestic product grew at 6.7 per cent for Q1FY25. Experts were anticipating moderate growth for this quarter, attributing their expectations to the general elections of 2024, a slump in urban consumption and a previously-sluggish rural growth. The Reserve Bank of India had in August projected India's GDP to grow at 7.1 per cent for the first quarter of fiscal year 2024-25.
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India's Q1 GDP growth likely slowed to 6.9% as government spending laggedIndia's economic growth for the April-June quarter likely slowed to 6.9%, down from 7.8% in the preceding quarter, due to decreased government spending during the national election, as per a Reuters poll. Despite the BJP retaining power, it lost its majority. Future growth is expected to stabilize around 7.0%. Official data will be released soon.