India's GDP claimed to reach 4 trillion dollars
Many leaders including Devendra Fadnavis shared the screenshot, no information from the government. Today on Sunday, a screenshot is going viral on social media, in which the Indian economy (GDP) is being claimed to have crossed 4 trillion dollars i.e. 4 lakh crore dollars for the first time. This screenshot has been shared on social media platform X by many BJP leaders including Ravindra Jadeja's wife and BJP MLA Rivaba Jadeja, Devendra Fadnavis and Arjun Ram Meghwal.
Bhavika Nandwana
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Apart from this, India's second richest person Gautam Adani has also congratulated India on becoming a 4 trillion dollar economy. However later he deleted this post. Even officially, no information has been given by the government regarding this.
What is GDP?
- GDP is one of the most common indicators used to track the health of the economy.
- GDP represents the value of all goods and services produced within a country in a specific time period.
- In this, the foreign companies which produce within the country's borders are also included.
- When the economy is healthy, unemployment levels are usually low.
There are two types of GDP
There are two types of GDP. Real GDP and Nominal GDP. In real GDP, the value of goods and services is calculated at the base year's value or stable price. At present the base year for calculating GDP is 2011-12. That is, the calculation was done according to the rates of goods and services in 2011-12. Whereas nominal GDP is calculated at current price.
How is GDP calculated?
A formula is used to calculate GDP. GDP=C+G+I+NX, here C means private consumption, G means government spending, I means investment and NX means net export.
Who is responsible for the fluctuations in GDP?
There are four important engines for increasing or decreasing GDP. The first is you and me. Whatever you spend contributes to our economy. Second is private sector business growth. It contributes 32% to GDP. Third is government expenditure.
This means how much the government is spending to produce goods and services. It contributes 11% to GDP. And fourth is note demand. For this, India's total exports are subtracted from total imports, because India has more imports than exports, hence its impact is negative on GPD.
