GDP & National Income
Economy Advanced · GDP और राष्ट्रीय आय · 18 facts
GDP (Gross Domestic Product): Total market value of all final goods and services produced within a country's borders in a specific period.
GNP (Gross National Product) = GDP + Net Factor Income from Abroad; includes income of nationals abroad but excludes income of foreigners in India.
NNP (Net National Product) = GNP - Depreciation (Capital Consumption Allowance); represents net output after accounting for wear and tear.
National Income = NNP at Factor Cost = NNP at Market Price - Indirect Taxes + Subsidies; measures actual income earned by factors of production.
Base year for India's GDP calculation: 2011-12 (revised); Central Statistical Organisation (CSO)/MoSPI releases GDP data.
India's GDP (2024): Approximately $3.7 trillion (nominal); 5th largest economy in the world; overtook UK in 2022.
India's $5 trillion economy target: India aims to become a $5 trillion economy; requires sustained 8-9% GDP growth for 4-5 years.
GDP growth FY2023-24: 8.2%; one of the fastest-growing major economies; driven by manufacturing (PLI), infrastructure, and services.
GDP measurement methods: Expenditure Method (C+I+G+NX), Income Method (wages+rent+interest+profit), Production/Output Method (value added at each stage).
India economy composition: Services sector contributes ~55% of GDP, Industry ~26%, Agriculture ~18%; but agriculture employs ~45% of workforce.
India's GDP per capita (2024): Approximately $2,600; compared to world average of ~$13,000; India is a lower-middle income country by World Bank classification.
India vs China GDP: China's GDP is ~$18 trillion (2nd largest); India is ~$3.7 trillion; India growing faster (8% vs China's 5%).
GDP vs GDP PPP: India ranks 3rd by GDP PPP (Purchasing Power Parity) as it adjusts for cost of living differences; USA is 1st by nominal GDP.
India's highest single-year GDP growth: 9% in FY2016-17 (revised); COVID hit in FY2020-21 with -6.6% contraction (first contraction in 40 years).
MoSPI (Ministry of Statistics and Programme Implementation): Compiles and releases India's national income data; also conducts NSS (National Sample Survey).
India's shadow economy: Estimated 20-25% of GDP; unreported transactions outside tax system; government's formalization efforts through GST, UPI, Jan Dhan.
Green GDP: Adjusts GDP by deducting environmental degradation costs; India not officially using green GDP but SDG India Index tracks environmental indicators.
Advance estimates vs Final estimates: GDP advance estimates released in January; first revised estimate in January next year; second revision when data matures.