Hi people I hope you guys are doing well in this Covid-19 situation. Here I am with a new and quite interesting topic for you guys. I hope once you go through this piece of information you will definitely have a good idea about what exactly is GDP and how we affected by it.

 So let’s begin with the topics “GDP (Gross Domestic Product)”

 What is GDP

o        Just like we check our physical health by BP, sugar and other tests, the health of   the country's economy is checked by GDP.

o        GDP stands for gross Domestic Product. Well that’s for the definition which means   the sum of all the goods and services raised or created by any country within a   particular time period.

o        The GDP basically shows the economic condition of the country. The GDP is an   important factor for a developing country like India.

o        A country's economy is estimated by looking at its GDP. In simple words the GDP is   basically how much money is used or utilized by any company and government to   produce any kind of service or product over the time period.

o        These figures are released by CSO (Central Statistics Office). Performance in 8   different sectors is considered for this.

 How GDP is calculated

The formula to calculate GDP is : 

     GDP = C + I + G + NX

C - CONSUMTION

I - INVSTMENT

G - GOVERMENT SPENDING

NX - NET EXPORTS

 Well as we go through the word GDP is sum of the consumption of product or services done plus Investments done by the government or companies into producing the products or services plus money is invested by government plus the amount of products or services exported to the country.

§        Once the GDP is calculated it is compared with the previous quarters GDP and it   gives whether the GDP is negative or positive.

§        For example current GDP of India in 2020 for current quarter is -23.9% as compare to the GDP of the 2019 years same quarter.

§          In simple words the production of goods and services in 2020 this quarter is     -23.9%  less than the production of goods and service produce in the 2019 for the same quarter.

 Types of GDP

As per the economics the GDP is divide into four basic types that considered in the picture of countries economics.

1) Real Gross Domestic Product

2) Nominal Gross Domestic Product

3) Gross National Product

4) Net Gross Domestic Product

 Which part is not included in the GDP ?

- Only the organized sectors like companies, Transport services etc are included in the GDP.

- Unorganized sectors like fruit vendor, Vegetables vendors in weekly markets are not included in the GDP.

- If the unorganized sectors are included in the GDP then the number will be more negative than the last years quarters GDP.

- Crisis on the economy slows GDP growth. Drought and international oil prices are the two main factors affecting GDP

- The decline in GDP affects the income of the common man.

   For ex: If one person’s monthly income is 10K.

   GDP Growth Rate is 5%. In such a case the same monthly income will increase by      Rs.500.

- GDP decrease by 1%, then same monthly income will decrease by Rs. 100. That        means Rs. 1200 reduction in annual income.

- Due to the huge gap between the incomes of the rich and the poor in India, the         worst hits are the poor.

- Declining production also reduces tax collection. It also affects the government     coffers

- Currently, the central government's GST collection has declined. As a result, the     states are not getting their compensation, which could affect development work and   other facilities in the state

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