1. PresentationPresentation
onon
Gross domestic productGross domestic product
Neeraj DhimanNeeraj Dhiman

2. Introduction of GDPIntroduction of GDP
The gross domestic product is one of the measure ofThe gross domestic product is one of the measure of
national income and output for given country’snational income and output for given country’s
economy.It is defined as total money value produced ineconomy.It is defined as total money value produced in
domestic territory of country during a year. Domesticdomestic territory of country during a year. Domestic
territory does not mean only geographical bondaries ofterritory does not mean only geographical bondaries of
economy.it is defined to include the following:-economy.it is defined to include the following:-
• Territory lying within the political frontiers,includingTerritory lying within the political frontiers,including
territorial water of country.territorial water of country.
• Ships and aircraft operated by the resident of country.Ships and aircraft operated by the resident of country.
• Oil and natural gas and floating platform operated by theOil and natural gas and floating platform operated by the
residentes of the country .residentes of the country .
G.D.P= C+G+I+(X-M)G.D.P= C+G+I+(X-M)

3. Types of GDPTypes of GDP
The following types of gdp:-The following types of gdp:-
• Gross domestic product at current pricesGross domestic product at current prices
and constant pricesand constant prices
• Gross domestic product at market price.Gross domestic product at market price.
• Gross domestic product at factor cost.Gross domestic product at factor cost.

4. GDP at constant prices and current pricesGDP at constant prices and current prices
When the privailing prices are used forWhen the privailing prices are used for
measuring gdp,we call it gdp at current price butmeasuring gdp,we call it gdp at current price but
when we use the prices of some base year forwhen we use the prices of some base year for
measuring the value of gdp, we call it gdp atmeasuring the value of gdp, we call it gdp at
contant price.contant price.

5. GDP at market priceGDP at market price
• According is Dernburg ”Gross domesticAccording is Dernburg ”Gross domestic
product at market price is defined as theproduct at market price is defined as the
market value of the output of final goodsmarket value of the output of final goods
and services produced in the domesticand services produced in the domestic
territory of a country by all the producersterritory of a country by all the producers
during an accounting year.”during an accounting year.”

6. Different types of GDP at M.PDifferent types of GDP at M.P
Product method Expenditure method Income methodProduct method Expenditure method Income method
CC
GG
II
X-MX-M
CC
GG
II
X-MX-M
Net indirect taxNet indirect tax
DeprecationDeprecation
Mixed incomeMixed income
ProfitProfit
InterestInterest
RentRent
Compensation ofCompensation of
employeesemployees

7. GDP ATGDP AT MARKETMARKET PRICEPRICE
g.d.p at market price=g.n.p at market price-net factor income from abroadg.d.p at market price=g.n.p at market price-net factor income from abroad
Following data of indian economy.Following data of indian economy.
Rs.croreRs.crore
Compensation of employees 49651Compensation of employees 49651
Interest 10209Interest 10209
Rent 4794Rent 4794
Profit and dividends 6926Profit and dividends 6926
Mixed income 50416Mixed income 50416
Indirect tax 20092Indirect tax 20092
Subsidy 3161Subsidy 3161
Depreciation of capital 9751Depreciation of capital 9751
Net factor income from abroad 7Net factor income from abroad 7
G.D.P at market priceG.D.P at market price = 148671-7= 148671-7
138920138920

8. GDP at factor costGDP at factor cost
According is Hanson ” Gross domestic product atAccording is Hanson ” Gross domestic product at
factor cost is the sum of net value added by allfactor cost is the sum of net value added by all
the producers in domestic territory of the countrythe producers in domestic territory of the country
and the consumption of fixed capital during anand the consumption of fixed capital during an
accounting year.”accounting year.”

9. GDP at factor costGDP at factor cost
G.D.P of factor cost=g.d.p of market price-G.D.P of factor cost=g.d.p of market price-
Net indirect taxNet indirect tax
=14878-(20092-3161)=14878-(20092-3161)
=131747 cr.=131747 cr.

10. GDP GROWTH RATEGDP GROWTH RATE

11. ThanksThanks