qwertyuiopasdfghjklzxcvbnmqw

ertyuiopasdfghjklzxcvbnmqwert
yuiopasdfghjklzxcvbnmqwertyui
opasdfghjklzxcvbnmqwertyuiop
GAP BETWEEN INDIAN GDP AND
INDIAN PER CAPITA GDP
asdfghjklzxcvbnmqwertyuiopasd
ECONOMICS ASSIGNMENT 1ST
YEAR(B.COM LLB)21335_NEERAJ
fghjklzxcvbnmqwertyuiopasdfgh
PRATEEK1/25/2022ST.JOSEPH’S COLLEGE
OF LAW

jklzxcvbnmqwertyuiopasdfghjkl
Admin

zxcvbnmqwertyuiopasdfghjklzxc
vbnmqwertyuiopasdfghjklzxcvb
nmqwertyuiopasdfghjklzxcvbnm
qwertyuiopasdfghjklzxcvbnmqw
ertyuiopasdfghjklzxcvbnmqwert
yuiopasdfghjklzxcvbnmqwertyui
opasdfghjklzxcvbnmqwertyuiop
asdfghjklzxcvbnmqwertyuiopasd
fghjklzxcvbnmqwertyuiopasdfgh
jklzxcvbnmrtyuiopasdfghjklzxcv
GDP
(GROSS DOMESTIC PRODUCT)
*It is the market value of all the final goods and services
produced within a country in a given time period.

*Market value: using market prices to value Production

*Final goods and services: produced for final use, not as a
component of another goods or services.

*Within a country: reason why its called gross domestic

product.

*In the given time period: yearly,quarterly,monthly.

METHODS TO MEASURE GDP

1) PRODUCT APPROACH

2) EXPENDITURE APPROACH

3) INCOME APPROACH
1) PRODUCT APPROACH
*Sum of market value of all final goods and services.
*suppose there are M goods, with quantities Q1,Q2…..QN and
units prices P1,P2……PN respectively. The GDP is:
GDP=P1Q1+P2Q2……..+PNQN.

2) EXPENDITURE APPROACH
* expenditure by households on consuming goods and
services.
* Total expenditure is the total amount received by produces
of final goods and services.
GDP= C+I+G+(E-M)
* Consumption expenditure (C)
-Expenditure by households on consuming goods and
services.
* Investment (I)
- Is the purchase of new capital goods.
* Government purchase (G)
- all the expenses the government spends goods and
services.
*Net Exports (E-M)
- E (exports),goods that we sell to other countries.
- M(imports),goods that we buy from other countries.

3) INCOME APPROACH
* Sum of income gained by the production of final goods
and servies.
GDP= wage+interest+profit+rent.
- ( income for labor)
- (income for capital)
- (income for firms)
- (income for land).

REAL GDP
 Is the value of all goods and services produced by an
economy in a given year( expressed in base year prices)
 Removes the influence of price change, so that we can
focus on comparing the changes in output alone.
 Suppose the base year is 2003. Then real GDP’s in 2016
is:
REAL GDP2016= P1(2003)Q1(2016)+ P2(2003)Q2(2016)………PN(2003)QN(2016).

NOMINAL GDP
* Nominal gross domestic product is GDP at current prices,
without adjusting the inflation.
* Current prices are obtained by expressing value of all goods
and services produced in the current reporting period.
NOMINAL GDP= P1(2016)Q1(2016) + P2(2016)Q2(2016)…….PN(2016)QN(2016).

IMPORTANCE
• Looking at expectation for everyday comforts

• Gross domestic product helps policymakers and national banks to decide whether the
economy is contracting or extending, climate it needs a lift or a put off.

• Measure the presentation of an economy, both over the long haul and across various
nations.

• public pay and item accounts, which structure the reason for estimating Gross homegrown
item, permit policymakers, financial analysts, and organizations to dissect the effect of such factor
money related and monetary arrangement, for example, a spike in the petroleum cost, and duty and
spending anticipates explicit subsets of an economy, as well as on the general economy itself.

DRAWBACKS
*Enviornmental quality
-Contamination isn't deducted from GDP
-Breaking down environment isn't meant something
negative for GDP
*It doesn't represent the underground economy
- GDP depends on true information, so it doesn't consider the
degree of the underground economy, which can be signficant
in certain countries.
*It is geologically restricted in an internationally open
economy:
- Gross public item. which estimates the result from the
residents and organizations of a specific country no matter
what their area, is seen as a preferred proportion of result
over GDP now and again.
* It underscores monetary result disregarding financial
prosperity.
* political opportunity and civil rights.

GDP PER CAPITA

* Per capita gross domestic product is a monetary metric that separates a countires financial result
for every individual and is determined by partitioning the GDP of a country by its populace.

*per capita GDP is a worldwide measure for checking the success of countries and is utilized by
financial specialists to dissect the thriving of a nation in light of its monetary development.

* There are a couple of ways of investigating a nations riches and thriving. Per capita Gross
homegrown item is widespread in light of the fact that its parts are routinely followed on a
worldwide scale, accommodating simplicity of estimation and use. Pay per capita is one more
measure for worldwide success investigation, yet all the same it's less extensively utilized.

*At its essential understanding, per capita GDP shows how much financial creation worth can be
ascribed to every individual. This means a proportion of public abundance since Gross homegrown
item market esteem per individual likewise promptly fills in as a properity measure.

*Per capita Gross Domestic Product thinks about both a nations GDP and its populace. Accordingly,
it tends to be utilized to see how each component adds to the general outcome and what each
element is meaning for per capita GDP development.

How Do You Calculate GDP Per Capita?

*The formula to calculate GDP Per Capita is
 GDP Per Capita = GDP/Population.
* GDP is the gross domestic product of a nation while the
population would be the entire population of a nation. This
calculation reflects a nation's standard of living.

Applications of Per Capita GDP

*States can utilize per capita Gross Domestic Product to see how the economy is developing with its
populace. GDP per capita investigation on public level can give understanding into a nations
homegrown populace impact. Generally speaking, it is essential to take a gander at every factors
commitment to see how an economy is developing or contracting as far as its kin. There can be a few
mathematical relations that influence per capita Gross Domestic Product.

*Assuming a nations for each capita Gross Domestic Product is developing with a populace level it
might possibly be the aftereffect of mechanical movements that are delivering more with a similar
populace level. A few nations might have high per capita Gross Domestic Product however a little
populace which ordinarily implies they have developed an independent economy in light of
exceptional assets.

*A country might have steady financial development yet assuming that its populace is becoming
quicker than its Gross Domestic Product , per capita GDP development will be negative. This isn't an
issue for most settled economy, as even a lukewarm speed of financial development can in any case
outperform their populace development rates.

ADVANTAGES
• While ascertaining the GDP per capita, expansion winning by then of time is additionally
viewed as which helps in estimating the real degree of expansion in the labor and products during
the timeframe in the organization as it bars any effect which comes because of the ascending of the
costs in the country.

• It makes the examination simple as the nations populace all in all is considered while
computing the GDP per capita and it tells what nation of the world is poor and which nation is rich.

• This worth is one of the valuable measures for the heads of the world since it helps the
innovators in concluding where the cash should be spent to utilized in its most ideal way.
• It is a Good pointer for showing the arrangement of the administrations.

DISADVANTAGES
• One of the burdens assuming the GDP per capita is that it doesn't think about the average
cost for most everyday items of the individual of their country into account while computing it.

• Gross domestic product per capita ascertains a normal figure, because of this it is beyond
the realm of possibilities to expect to get the result from it in regards to the dissemination of the pay
among individuals of the nation , it doesn't tell that how the abundance is spread in the country. It is
conceivable that the less individuals in the nation have the greatest measure of abundance and
there could be colossal measure of the hole between the rich and poor of the country.

• Gross domestic product per capita doesn't think about the subtleties of the income of the
illicit laborers in the country as well as individuals who are working deliberately in the country.
Because of this GDP per capita doesn't tell the specific subtleties of the normal pay of the country
per resident in a year.

• With the GDP per capita, the normal yearly pay is gotten from individuals of the nation,
however it gives no sign on the spending limit of those individuals of the country.

DIFFERENCE B/W GDP AND PER CAPITA

GDP
*Total national output, is an action depicting the worth of a country as economy. Gross domestic
product per capita is an action that outcomes from GDP partitioned by the country's size (in general
populace). So basically, it is hypothetically how much cash that every individual gets in that specific
year.

INDIA’S GDP
*India GDP for 2020 was rupees 197.46 lakh crore, a 8.62% decline from
2019
*India GDP for 2019 was rupees 203.52 lakh crore, a 6.27%
increase from 2018.
INDIA’S PER CAPITA GDP
*India gdp per capita for 2020 was rupees 1,41,804, a 9.52%
decline from 2019.
*India gdp per capita for 2019 rupees 1,56,753, a 5.2%
increase from 2018.