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Gross Domestic Product
GDP is the final monetary value of the goods and services
produced within the country during a specific period, normally a year.
Three main sectors that contribute to GDP in India
1. Agriculture
2. Industry
3. Services
GDP is measured over market prices and there is a base year
for the computation. Nominal GDP is the value of all final goods and services
that an economy produced during a given year. GDP can be calculated in three ways,
using expenditures, production, or incomes. It can be adjusted for inflation
and population to provide deeper insights.
In January 2015, the government moved to the new base year
of 2011-12 from the earlier the base year of 2004-05 for national accounts. The
base year of national accounts had previously been revised in January 2010. In
the new series, the Central Statistics Office (CSO) did away with GDP at factor
cost and adopted the international practice of valuing industry-wise estimates
in gross value added (GVA) at basic prices.
- Business Standard
Nowadays GDP rises along with inflation and the crisis because some sectors
may remain untouched by business environmental factors or due to the growth
phase of the country.