GDP Full Form is Gross Domestic Product. GDP is a measure or a means of measuring the economic health of any country. Let us tell you that GDP in India is calculated every quarter. The GDP figure is based on the growth rate of production in the major production sectors of the economy.
Agriculture, industry and services are the three major components under GDP. The GDP rate is determined on the basis of average increase or decrease in production in these areas.
Types Of GDP
- Real GDP – A base year is determined to extract the GDP of the country. In this, the price of goods and services is considered fixed. This type of GDP is called real GDP. In the Indian economy, this base year has been considered as 2011-12.
- Unrealistic GDP – To extract the GDP of a country, the current market price is considered the basis, GDP is studied only on the basis of this price. In this way GDP is called unreal (nominal) GDP. It is very beneficial from a comparative perspective. This type of GDP has immediate impact on the citizens of the country.
How To Calculate GDP