Do you all know what is GDP (Gross Domestic Product)? Today we will talk about GDP full form, types, and how to calculate it. Today we will know about it in very easy words. You must have heard the name of GDP (Gross Domestic Product) on TV in all of you but have you ever wondered what it is. Many of you do not know about this and many people know about it. But today’s article is for both the people who are aware of it and do not even have the information.
With the help of GDP, you can know about the economy of any country. And you can find out from this how many changes are taking place in that country. If you want to find out the pace of development of any country, then you can do it. A lot of people know from all of you that the GDP of the country determines the economy of that country at the international level. And if the economy of any country is strong, then its people get good employment.
First of all, I want to ask all the people that you all found our previous post stock market. I sincerely hope that you all must have liked the post on how to invest in the stock market. The largest group of economies and powerful countries in the world is the G7.
You can easily know at what rate any country is progressing from GDP. A lot of people simply don’t understand what it is. Now through this post, we will know what is GDP, what is its full form and how is it calculated. If you want to know about Gross Domestic Product, then you must read this post from beginning to end.
What is GDP?
What is GDP(Gross Domestic Product)? you can find out about the economy of any country. With the help of this, one can find out about the economic development happening in the country. It measures the economic development of any country. If the GDP of any country increases. So the development of the country is happening very well and all the people in the country have work. If the GDP of that country is decreasing then development is decreasing in that country and unemployment is high in that country.
Now this question must have come to the mind of all of you that how GDP comes out. In this, only the products made in the country are counted and the products made abroad are not counted.
- Trading Account: Demat Account vs Trading Account, Benefits
- What is a Freelancer? Freelancer Hire, Find Jobs, logo Design
Now we understand it in very simple language. Example Let’s say if a country has 100 vaccines made and the cost of one vaccine is Rs.100. So the GDP of that country is 100×100=10000 Gohi. Now you people will say that it is also possible that out of these 100 vaccines. 50 may be made by the government 30 vaccines may be made by a private company and 20 vaccines may be made by a foreign company. So in such a situation, whom will you add and leave Kish?
It does not matter who is making the vaccines, the vaccines should be made only within the limits of that country. All the products made in your country are counted in the GDP of the country. Now you all must have understood What is Gross Domestic Product. If you still face any problems in understanding then you can ask in the comment section.
Definition of GDP [Gross Domestic Product]
Gross Domestic Product means. A product is the value of all final goods and services produced within the country’s borders.
GDP in Hindi = Gross Domestic Product in Hindi
Full-Form of GDP
Now we know what is the full form of GDP. Many people do not know about its full form. If someone asks you its full form, then you should know about it. If you do not know its full form then you can know below.
GDP Full Form: The full form of GDP is “Gross Domestic Product“.
- What is a Passport? Application, Apply, Document, 2021
- What is WHO? WHO Full Form [World health organization]
History of GDP [Gross Domestic Product]
Now we know about the history of GDP, many people know its meaning. But do you know about its history? There are very few people in the world who know about its history. The puzzle time use of the term GDP was in the 18th century in 1934. The name was developed by American economist Simon Kuznets. And the name GDP was adopted in 1944 at the Bretton Woods conference to know the economy of the country.
Many years ago, after the end of World War II, the whole world was going through an economic recession. And after some time slowly the recession in the world will end. But even today there are some countries that are still going through an economic slowdown. After that, all the countries were looking for a way to know about the recession. At that time no country had any way to measure the economic slowdown. After that, some financial institutions and banks came up. Those who assured the government that they would keep an account of the country’s economic development.
After that in the year 1934, the term GDP was first used in America. American economist Simon told the US Congress about GDP. After that, after the Budd conference in Britain, you can know the economy through the World Bank and the international currency.
How to Calculate GDP
If you want to measure all GDP, then a formula has been made for that. With the help of which you can find out the GDP of any country. And with its help, you can find out about the economy of any country.
GDP Formula: GDP = C + I + G + (X − M)
Gross Domestic Product = Consumption + Gross Investment + Government Spending + (Imports –Exports)
C (Consumption): Most of the household expenses include household expenses such as rent, food, medical expenses, etc. Apart from this, such household expenses come under Consumption. And this does not include the new home.
I (Gross Investment): It is the expenditure on consumer goods and services. It measures the total expenditure by all institutions on goods and services within a country’s domestic borders.
G (Government Spending): It includes all types of government expenditure. For example, the investment made by the government, the salary of all types of government employees, buying of arms, etc.
X (Imports): Exports count the goods or services produced for consumption by other countries.
M (Exports): This includes imported goods and services, minus imports to calculate GDP.
How to Calculate GDP in India
The economy is improving very fast in India. India is the fifth-largest economy in the world by nominal GDP. The economy is improving very fast in India. And in today’s time, India’s economy is giving competition to the developed nations.
Now we know how to calculate Gross Domestic Product (GDP) in India. If you are a citizen of India then you should know about it. If you are not aware of this then read this post carefully. Because in this post we have learned so far in very simple language. Now we know what is Gross Domestic Product.
Agriculture, Industry, and Services are the three main parts to calculate GDP in India. Gross Domestic Product is decided on the basis of an increase or decrease in the production of all these. Suppose if India’s GDP grows by five percent every three months, then India’s economy grows by five percent. If you want to calculate Gross Domestic Product then you will get its formula in this post. With the help of that formula, you can know about the economy of any country.
Types of GDP [Gross Domestic Product]
Now we know how many types of GDP are there, there are two types of Gross Domestic Product. The first Nominal and the second Real, now we will know about these two in full detail.
Nominal GDP: In this, Gross Domestic Product is calculated on the basis of current market prices. It is called nominal GDP.
Real GDP: In this, Gross Domestic Product is calculated on the basis of year market prices. It is called Real GDP.
Difference Between GDP & GNP [GDP vs GNP]
What is the difference between GDP and GNP, whenever you must have heard the name of GDP, you must have heard the name of GNP along with it? The full form of GNP is Gross National Product. Many people get confused about these two that both are different or the same. For your information of all of you, let me tell you that these two are different. Now we know in very simple language what is the difference between Gross National Product and Gross Domestic Product.
| GDP | GNP |
| GDP is a Gross Domestic Product | GNP is a Gross National Product |
| Gross Domestic Product just sees whether the production is happening within the limits of the country or not. | Gross National Product ensures that the production is done by the citizens of the country only. |
| Its formula is GDP = C + I + G + (X – M). | Its formula is GNP(Y) = C + I + G + X + Z |
| Gross Domestic Product refers to the level of domestic production | GNP measures the level of output of any individual or corporation in a country. |
Top 10 Countries By GDP [2022]
| NO. | Country | GDP (US$ M) |
| 1. | United States | 22,675,271 |
| 2. | China | 16,642,318 |
| 3. | Japan | 5,378,136 |
| 4. | Germany | 4,319,286 |
| 5. | United Kingdom | 3,124,650 |
| 6. | India | 3,049,704 |
| 7. | France | 2,938,271 |
| 8. | Italy | 2,106,287 |
| 9. | Canada | 1,883,487 |
| 10. | South Korea | 1,806,707 |
FAQ
Also, read
- Mutual Fund: Benefits, Types & How to Invest in Mutual Funds
- Share Market: How to Invest in Share Market [Full Guide]
- Nifty: What is Nifty50? How to invest in Nifty.
- Sensex: What is Sensex & How Does it Work-NSE vs BSE.
Last Word
I sincerely hope that you all will definitely like today’s article. What is GDP (Gross Domestic Product) and what is its full form? In today’s post, we have learned how to calculate it and what is the formula to calculate it. If you all liked today’s post, then you must share it. You can use any social media platform to share.
Today we have learned about Gross Domestic Product in very simple words. If you all face any problems in this post then you can ask in the comment section. You can clear all your doubts through our team. If you like this post, then you must tell by commenting. There are many people in all of you who already knew about this. But I am sure they too must have learned something new through this post.
If you want to know the latest updates on our Website ProKeda, then for that you have to allow the notifications given on the website. and If you allow notifications, then you will get daily latest updates information. If you use telegram then you can also follow us on telegram. Thank you all for visiting our website.