Connect with us

Business

How is the GDP of India Calculated; GDP Calculation Methods, Formula, and Indian Economy

GDP is presented in two ways. Because the cost of production decreases with inflation, this scale is Constant Price.

Published

on

India GDP Images

How is the Indian GDP Calculated?: The GDP is the most important criterion for measuring the economic health of any country. GDP is the total value of production of goods and services during a particular period. GDP is calculated on every third month i.e. on a quarterly basis in India. The notable point is that these productions or services should be associated the country. Basically, India has three major components Agriculture, Industry, and Services, whose basis Indian GDP rates have calculated as the average of the increase or decrease in production.

What are the GDP Calculation Methods?

GDP is presented in two ways. Because the cost of production decreases with inflation, this scale is Constant Price. Under this, the rate of production and production of GDP is fixed at the cost of production in a base year.

For instance, if the base year is 2015, then the price of production is seen as a rise or fall. The other way which is used to introduce the GDP is the current price. Under this, the production price and Inflation rates are being checked.

Central Statistical Office(CSO) fixes a base year. The evaluation of CSO on production and services is being joined. In this base year, the prices of Production and Services viewed by making the basis of prices and accordingly, the comparative increase or fall is assessed.

Based on the cost price, GDP is calculated so that it can be measured by keeping the data separate from the fluctuations in inflation.

India GDP Analysis

India’s Constant Price calculation base year is currently 2011-12. For instance, If only three items of worth rupees 100 Rs per were made in India in 2011, then India’s total GDP was Rs 300. And if by 2017 the production of this item was two, but the price was 150 rupees then the nominal GDP was 300 rupees. But what actually happened, did India progress? No….

This is the time where the base year formula works. According to the 2011 costant price (100 Rupees), the actual GDP was 200 rupees. Now it can be clearly seen that GDP has declined.

CSO Full Form and What its role in GDP?

CSO collects production and services data across the country. In this process, there are several indices, mainly in the industrial production index ie IIP and Consumer Price Index (CPI).

CSO collects data by coordinating with various central and state agencies. For instance, the wholesale price index i.e. WPI and consumer price index i.e. manufacturing for calculating CPI, data of agricultural product mobilizes the consumer affairs ministry. Similarly, the figures of IIP raise the Department under the Ministry of Commerce and Industry.

CSO collects all these data and then calculates the GDP data by computing it.

The figures are mainly collected from eight different industrial areas. These are-

  1. Agriculture, forestry, and fishing
  2. Mining and quarrying
  3. Manufacturing
  4. Electricity, gas and water supply
  5. Construction
  6. Trade, hotels, transport, and communication
  7. Financing, insurance, Real Estate, and business services
  8. Community, social and personal services

If you like this article, share with your friends, and Groups. You can also follow us on Facebook and Twitter.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Sports

Opinion

India

Technology

sisli escort sirinevler escort mecidiyekoy escort sisli anal escort escort bayan mecidiyekoy escort bayan sisli escort bayan sirinevler http://www.sisliescort8.com http://www.antges.com escort bayan istanbul terazi Sincan escort Eryaman Escort Etlik Escort Ankara Escort Ankara Escort Ankara Escort Ankara Escort Çankaya Escort Antalya Escort Eskişehir Escort Kayseri Escort Mersin Escort Mersin Escort mersin escort istanbul escort porno indir beylikdüzü escort fx15 sipariş izmir escort izmir escort eskişehir escort eskişehir escort bursa escort bursa escort orjinal lida ümraniye escort kadıköy escort ankara escort beylikdüzü escort Sex izle Sikiş Türk Porno istanbul escort Ataşehir escort