INTRODUCTION

• GDP is a metric that reflects the flow of revenue and expenditure in a country's economy over time
Actual GDP (constant prices) is used to measure this economic growth; hence the resulting growth rate
represents real growth attributable to increased production.
• One of the goals for improving a country's economy is to achieve economic equilibrium.
• The global economic crisis caused by the trade war, which hit almost every country in the globe,
including India and the United States, demonstrates that a country's economic balance cannot rely only
on the private sector.
• The government's contribution, particularly government spending, is likewise fairly reliable. Exports are
predicted to outnumber imports as a result of government spending, resulting in an increase in GDP.
• The Bureau of Economic Analysis (BEA) in the United States calculates GDP using data gathered from
surveys of retailers, manufacturers, and builders, as well as trade movements. India's GDP is computed
using two separate methodologies, yielding results that are near in range but not identical.
• Four major components of GDP are: 1. Private Consumption Expenditure (C) 2. Investment
Expenditure (I) 3. Government Purchases of Goods and Services (G) 4. Net Exports (X – M)!

GDP = C + I + G + (X-M)
 VARIABLES
• The data shown in this table is Nominal GDP, Real Year Nominal GDP Real GDP GDP Growth Events Affecting
GDP and the event affected the GDP in particular (trillions) (trillions) Rate GDP
year of United state.
2009 $14.449 $15.209 -2.5% Stimulus Act

2010 $14.992 $15.599 2.6% ACA, Dodd-Frank

• Nominal GDP- Nominal GDP is a macroeconomic
2011 $15.543 $15.841 1.6% Japan earthquake
assessment of the value of goods and services using
current prices in its measure 2012 $16.197 $16.197 2.2% Fiscal cliff

2013 $16.785 $16.495 1.8% Sequestration

• Real GDP takes into consideration adjustments
for changes in inflation.  2014 $17.527 $16.912 2.5% QE ends

2015 $18.238 $17.432 3.1% TPP, Iran deal

2016 $18.745 $17.731 1.7% Presidential race

Nominal GDP = Real GDP x GDP Deflator 2017 $19.543 $18.144 2.3% Tax Cuts & Jobs
Act (TCJA)

2018 $20.612 $18.688 3.0% Deficit spending

2019 $21,433 $19,092 2.2% Trade war

 Characteristic Agriculture Industry Services

2019 15.96% 24.88% 49.88%

2018 15.41% 26.13% 48.81%

2017 16.36% 26.48% 47.89%

2016 16.36% 26.62% 47.75%

2015 16.17% 27.35% 47.78%

2014 16.79% 27.66% 47.82%

2013 17.15% 28.4% 46.7%

2012 16.85% 29.4% 46.3%

2011 17.19% 30.16% 45.44%

2010 17.03% 30.73% 45.03%

2009 16.74% 31.12% 45.98%

Table: - India: Distribution of gross domestic product (GDP) across economic sectors from 2009 to 2019

Above Data shows the distribution of GDP in percentage form of three major sector on which Indian economy depends i.e.-
Agriculture, Industry and service sector for the financial year of 2009-2019. From the data we can say that service sector has
very high distribution in Indian GDP in comparison of Agriculture and Industry.
 RESEARCH ANALYSIS

• United States Vs India – GDP Comparison

The US is a much bigger economy than India.
During 1980, the US GDP was $2,857 billion, and
India GDP was $189 billion. India GDP in 2018
was less than the US GDP in 1980. So, India is
nearly four decades behind the US in GDP.
• In the last four decades, the US real GDP
growth has mostly remained between 1% and
4%, whereas India real GDP growth has
mostly remained between 4% and 8%.
Because of its smaller size, India has mostly
remained ahead of the US in real GDP
growth. Despite its higher base, the US was
ahead of India in real GDP growth three times
– during 1984, 1997, and 2000.
 CONCLUSION

• Economic policy can cause us to observe distinctions between countries, which is

why we need to compare economics. Because of the role of the state and other
factors, no economic system is perfect. Economic policy can also cause us to
notice disparities between countries, which is why it is necessary to compare
economics.
• It was difficult to talk about this because the evidence reveals that India is
weaker than the United States in practically every way. Then we may make an
overall conclusion that physical capital, which refers to saving and investment, in
both India and the United States is still struggling, but the United States appears
to be prospering while India is attempting to increase saving and investment