GDP Full Form/ What is the full form of GDP?

                             GDP Full Form

The Full form of GDP is Gross Domestic Product. GDP is the total market value of all the goods and services produced within a country in a specific duration of time. GDP measures the monetary value of final goods and services – that is, those that are bought by the final user – produced in a country in a given period of time. It is used to measure the size of an economy and overall growth or decline in the economy of a nation. It indicates the economic health of a country as well as specifies the living standard of the people of a specific country, i.e. as the GDP increases the living standard of the people of that country increases. A country having good GDP is considered as a good country for living purpose. In India, there are three main sectors that contribute to GDP; industry, service sector and agriculture including allied services. GDP is the primary indicator to determine the growth of a country’s economy. There are many approaches to calculate GDP. If we talk about a simple approach, it is equal to the total of private consumption, gross investment and government spending plus the value of exports, minus imports i.e. the formula to calculate GDP = private consumption + gross investment + government spending + (exports – imports).

HISTORY

The basic concept of GDP was given by William Petty to defend landlords against unfair taxation between the Dutch and the English between 1652 and 1674. Later, this method is further developed by Charles Davenant. Its modern concept was first developed by Simon Kuznets in 1934. After the Bretton Woods conference in 1944, it became the main tool to measure the economy of a country.

When is GDP Calculated in India?

In India GDP is calculated every third quarter.

How is GDP Calculated?

To simplify how the GDP is calculated lets put it in this perspective.

GDP is the sum of all expenditures made by firms, households, and governments on any final goods and services minus net exports made by a country in the current year.

GDP = All expenditures done by Firms + Households + Governments – (net exports)

Net Exports = Exports – Imports