What is a GDP? kINDLY EXPLAIN FROM Indian context.?

Answer 1

assume you are producing chairs and your wife is producing tables. selling. For producing chair the material costs are Rs.100 and you can sell at the market price of 200. For table, the material cost = 200, market price = 400

In a year, say 2005, you produced 100 chairs and your wife produced 100 tables.
So the market value of chairs and tables produced by your family = 100*200 +100*400 = 60,000.
This is GDP of your family. Now extend this to 2 families. One yours and one that of the wood mill (saw mill) owner.
Saw mill owner's GDP = total of your material cost = 100*100+100*200 = 30,000.
Now GDP of the country with 2 families = 60,000 + 30,000 = 90,000. Here, the problem is wood is entering as final good at mill owner's level and in GDP of your family also it is reflected as your income. How can it be income of both the families? That is, there is double counting. To avoid this, we follow value added method. Value addition is value of final output - material (wood) cost.

The value addition is Rs100 per chair ( you are putting your skill and labour and able to add value to the material). For table. and value addition = 400 -200 = 200.

the value added by you= 100*100 = 10,000
the value added by your wife =200*100=20,000
Total value added by your family = 30,000 during the year.
The gross domestic product (GDP) of your family during 2005 = 30,000
And the value addition of mill onwer's family = 30,000 (assume the wood is from tree in mill owner's backyard and no payments to anyone before)

The GDP of the country with 2 families = 30,000+ 30,000 = 60,000
This is the basic concept in computing GDP. Here what we did was: we found the total of value of all the final goods produced by the family at the market prices. Extend the concept to country. In a country sevices like repairs, consultations, medical advice, legal advice, etc, are also offered.
So GDP is the sum of the value, at market prices, of all the final goods and services produced in a country during a year.
In India, the GDP calculation is a bit complicated than this. One of the three methods viz., product, income and expenditure is used for calculating GDP from different sectors depending the data available. All three methods give the same estimate of GDP.

Answer 2

GDP gross Domestic Product Its is the total of the income in all industries in the country i.e., the total of the actual output by all the industries of our country During the earlier period its only the Agriculture contributes the maximum to our GDP but now its reduced to a meager below 20% now its the turn of the manufacturing and the service sectors.

Answer 3

(GDP) Gross Domestic Product. It's the total of all the goods and services made and/or provided in the United States for one fiscal year. plain and simple in Indian context too and any other that lives in America.

Answer 4

GDP is the sum total of all the goods and services produced in India say for a particular year or in a particular quarter.

Answer 5

gross domestic product.which is calculated on various production products values.now India is all most at more than 8 as a fast growing economy.for our size 10 is a good fig. our pm n FM are trying hard for this. if we grow constantly at more than 10 for about 10 years then we will not be having any of our economical probs. in east Asian developing countries Vietnam is almost on par with us.