India annual GDP Growth 22

Many times you may have heard around you or in newspapers about GDP. Gross Domestic Product. So what is it?

Gross means total and domestic boundaries of india. And products means goods and revices which are produced within a year. See you can earn by only two ways. Either you produce something like some people are producing cars, bottles, tous, and mobiles etc. Or you give some services like a Doctor, Lawyer, Police, C.A , Teacher etc.

These people gives services or it anyone provides services by working in a company or a coiffure gives services by cutting hears. The value of all these goods and services Value means... If you have cut the hair 120 Rs then its value is 120 rs. Or if you've bought a pan for 10 rs then its value is 10 rs. The value of all these goods and services within a year within a counrty is called GDP. If a company of Japanies comes to India to manufacture something. Then it will be counted in the GPD of India.

That will not be counted in the GDP of The Japan. That's why we focus so much on make in India compaign. Let's understand this with the help of an Example... Assume there is a mall, some shops are selling clothes in that, some are cutting hairs. A tarot card reader is predecting the future, providing the services. Someone is selling utensils. Goods and services are being sold on every floor. If we note the value of every sold item. And we do it for a year and at last, we add them So that Will be the GDP of that mall for the year. In the same way, how much goods and services are produced in a country within a year is its GDP. The frust thing is why it is needed to calcuate the GDP. Why so much effort is needed to calculate this? If the GDP is going every year. That mearns the production ia more on the counrty. The economy of the nation is goos. If the GDP is falling every year. That means fewer goods and services are being producing in the nation. When the production is low. Then the selling is aslo low. When there is less selling. Then this means the business will earn less money. Earning money means the purchasing power of people is decreasing. The. economy is going down. We get know the economic health of our nation by GDP. According to that, the government makes its policies. When the data of GDP is released we get to know about our shortcomings. And without knowing them we cannot improve them.

The GDP of the USA is number one all over the world.USA's GDP is around 22.9 trillion dollars and the second is China with an economy of around 18 trillion dollars whereas the economy of India is around 2.6 trillion dollar and keeps on changing. Now you may think about how it is calculated?

There ia any company that bought a battery from one place and chip from another place and sold the mobile. So the battery that was bought at its price will be included in the GDP or not. And if that gets added then the final mibile that would be sold. The price of that mobile will be added to the GDP or not. And of both their prices are added then the price of the battery is added twice to the GDP. So by this,the process of calculating the GDP will be incorrect. The same happens with every product. All this information is recoded bt Central Statistical Office (CSO). which thing is paid for by the businessman and what are the things that consumers are buying? The products that are counted in this are the ones that are sold after production. If I make a wooden product at my home and keep it in my home. Then it will not be counted in GDP productions. Along with the goods and services, investment is also counted in the GDP. Investment can be risky and complicated process. The biggest question is where to invest so that we will earn profit. There are many formulas to calculate the GDP. GDP by expenditure By income By production. But you don't have to get into that. That is the work of a finacial expert. Nevertheless, after reading this blog post, you have got to know something new related to GDP, if you want to say something to us related to this post, then you can comment. Thank you for reading.