In this article, we will discuss GDP calculation in India. So, let’s get started.
GDP calculation in India
- Gross Domestic Product (GDP) gives the economic output from the consumers’ side. It is the sum of private consumption, gross investment in the economy, government investment, government spending and net foreign trade (the difference between exports and imports).
- GDP = private consumption + gross investment + government investment + government spending + (exports-imports)
- In 2015, the Central Statistics Office (CSO) did away with GDP at factor cost and adopted the international practice of GDP at market price and the Gross Value Addition (GVA) measure to better estimate economic activity.
- GDP at market price = GDP at factor cost + Indirect Taxes – Subsidies