Gross Domestic ProDuct

Topic Covered :-

• What is Gross Domestic Product (GDP)?

• History Behind the Concept of GDP

• Sectors of Indian Economy

• Share of Sectors in GDP of India

• India’s Current GDP

• Share of GDP by the States and the UnionTerritories

in India

• India’s GDP Compared with the World

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What is the Gross Domestic Product(GDP) :-
Gross domestic product (GDP) is the total
monetary or market value of all the
finished goods and services
produced within a country's borders in a
specific time period. As a broad measure
of overall domestic production, it
functions as a comprehensive scorecard
of a given country's economic health.
Though GDP is typically calculated on an
annual basis, it is sometimes calculated on a quarterly basis as well. In the U.S., for
example, the government releases an annualized GDP estimate for each fiscal
quarter and also for the calendar year. The individual data sets included in this
report are given in real terms, so the data is adjusted for price changes and is,
therefore, net of inflation.
History Behind the Concept of GDP :-
Out of the carnage of the Great Depression and
World War II rose the idea of gross domestic
product, or GDP: the ultimate measure of a
country’s overall welfare, a window into an
economy’s soul, the statistic to end all statistics. Its
use spread rapidly, becoming the defining indicator
of the last century. But in today’s globalized world,
it’s increasingly apparent that this Nobel-winning
metric is too narrow for these troubled economic
times. 1937: Simon Kuznets, an economist at the
National Bureau of Economic Research, presents the
original formulation of gross domestic product inhis report to the U.S. Congress,
“National Income, 1929-35.” His idea is to capture all economic production by
individuals, companies, and the government in a single measure, which should rise
in good times and fall in bad. GDP is born.1944: Following the Bretton Woods
conference that established international financial institutions such as the World
Bank and the International Monetary Fund, GDP becomes the standard tool for
sizing up a country’s economy.
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INDIAN ECONOMY
Sectors of Indian Economy :-
India is one of the fastest-growing economies in the world and it is predicted that
by 2050, it will become the second-largest economy in the world. There are many
factors that contribute to the economy. As of 2018, the Nominal (current) Gross
Domestic Product (GDP) of the country is 2.72 lakh crores USD. The estimated
nominal GDP of 2020 is USD 3.202 trillion (as per Wikipedia). One might be curious
about the elements that contribute to the Indian economy. To quench curiosity,
the different sectors of the Indian economy are discussed here in detail. There are
three sectors of the Indian economy: the primary sector, the secondary sector, and
the tertiary sector.

• This is because it forms the base for all

other products that we subsequently
make. Since most of the natural
products we get are from agriculture,
dairy, fishing, forestry, this sector is also
called agriculture and related sector.

• The secondary industry sector(

manufacturing industry) processes the
raw materials supplied by primary
industries and prepares them for
consumer products. Later procedures
products that have been combined into
product lines by specific secondary
industries.

• The tertiary sector covers a wide range of

activities from commerce to administration,
transport, financial and real estate activities,
business and personal services, education, health
and social work.

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Share of Sectors in GDP of India :-
Generally, it has been noted from the histories
of India that at initial stages of development,
primary sector was the most important sector
of economic activity. As the methods of farming
changed and agriculture sector began to
prosper, it produced much more food than
before. Many people could now take up other
activities. There were increasing number of craft
persons and traders. Buying and selling
activities increased many times. Besides, there
were also transporters, administrators, army
etc. However, at this stage, most of the goods
produced were natural products from the
primary sector and most people were also
employed in this sector.

India’s Current GDP :-

In the vast landscape of global economies,
India stands out with its meteoric rise and
unwavering determination to reach new
heights. With its rich cultural heritage and a
population of over 1.4 billion people, India has
emerged as an economic powerhouse,
consistently showcasing its prowess on the
global stage. 2023 has proven to be a turning
point as India's GDP surges, solidifying its
position as a frontrunner in the global
economic race. India’s economy expanded by 6.1 percent in the Q4 of the fiscal
year 2022-23, leading to an annual growth rate of 7.2 percent. The growth rate
during the January-March period surpassed the 4.5 percent expansion witnessed
in the previous quarter of October-December 2022-23.According to official figures
released on May 31, 2023, the estimated Q4 GDP for the current Fiscal year stands
at ₹43.62 lakh crore.
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Share of GDP by the States and the Union :-
Maharashtra has the highest GDP among Indian States and Union Territories. As
of The FY 2019-20, Maharashtra is at Number 1 spot followed by Tamil Nadu and
Uttar Pradesh. Gujarat is at Number 4 and Karnataka is at number 5.
The top 5 states share around 50% of India’s total economy. Five states of South
India together account for close to 30%. Eight states of North-East India share 3%.
Andaman and Nicobar Islands has lowest GDP followed by Mizoram, Arunachal
Pradesh, Nagaland, and Manipur.
The lists of Indian states and union territories by their nominal gross state
domestic Product (GSDP). GSDP is the sum of all value added by industries within
each state or Union territory and serves as a counterpart to the national gross
domestic product(GDP).

List of Indian states and union territories by GDP and NDPS (Net State Domestic
Product) (2019-20) at the current price.

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 India’s GDP Compared with the World :-
A higher GDP indicates that the country is financially strong and growing at a stable
rate. According to the World GDP Ranking 2023 list, India is the fifth largest
economy in the world. Other prominent countries like the United States of
America, China, Japan, Germany, etc., have a significant presence in this GDP
Ranking list. Each country has their own unique characteristics and regional
strengths that contribute to its overall economic growth. With a GDP of more than
20 trillion dollars, the United States of America is the world’s largest economy.
Since China continues to invest heavily in economic growth, China has come close
to becoming the largest economy. Other notable nations like Germany, India, and
the United Kingdom follow next.

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