What is GDP and how to calculate GDP

Hello Everyone. In today's educational post, I won't be talking about NETC FastTag or GST(Goods and Services Tax). Today, I will explain everything about GDP. GDP stands for Gross Domestic Product. What factors influence the GDP growth rate? What does GDP mean? Why can't government print more money and make everyone rich? In this educational article, I will reveal everything.

I always say that Concept is power. Let's understand the basics first. A higher GDP growth rate doesn't mean that the common people of the nation are happy and satisfied. GDP is calculated by taking into account the following four factors: 

1.Consumer Expenditure

2. Industries Investment

3.Government Expenditure and,

4. Net Export[Export-Import]

Simply put, GDP increases when more money is spent on buying products that are manufactured in India. GDP increases when people spend more money. GDP increases when India exports more products to foreign nations. If Indians purchase Chinese Products, the GDP rate of China will increase. This is the main reason that the Indian Government is promoting Make in India. Products manufactured in India and by Indians will continue to generate higher revenue and income. 

Due to the ongoing pandemic, the country's GDP has fallen to -7.3%(2020-2021). After 1947, this rate is the lowest. Also, after the Indo-Pak war and the Oil Crisis, GDP had fallen to negative. However, the GDP has fallen badly due to the ongoing pandemic. India isn't alone. The coronavirus has impacted more than 156 nations all around the globe. Almost every single nation's GDP has fallen. However, countries like China are progressing at a faster pace than expected. 

It was difficult for everyone to believe that how India had managed to deal with the corona situation. On the other hand, people were worried about China. It is believed that the first incident was reported in Wuhan, China. Nowadays, the situation is completely different. Exams have been called off. Indian Railways isn't fully functional. Tourists aren't coming to visit India. Due to uncertainty, people are panicking and canceling their plans. 

Vaccination drive is being held at various places throughout the nation. Indian Prime Minister Narendra Modi also said that vaccines will be provided by the center to all states for free by the end of June 2021. Healthcare companies have increased the production of vaccines. It is believed that every single citizen of the nation will be vaccinated by the end of 2021. For the time being, vaccination is the only best temporary solution. 

Due to the rapid increase in intake of drugs and steroids, black fungus is also on the rise. I have written a separate post about Black Fungus, White Fungus and, Yellow Fungus. You can read it here: https://www.adityathewondrouswanderer.xyz/2021/05/Black%20Fungus.html

There is no denying the fact that GDP is an indicator of a country's progress in terms of economy and finance. Countries all around the globe use GDP to know about their progress. There are some limitations of this term as well. A high GDP growth rate doesn't mean that the people of the nation are wealthy and happy. 

Due to the ongoing pandemic, GDP has fallen badly. However, Adani and Ambani are becoming wealthier and wealthier. Everyone in Asia knows Ambani and Adani. What does this mean? The concept is simple. If 10% of people own 90% wealth, what does this mean? It means that 10% of people are controlling the entire economy of that particular nation. Almost everything depends on the 10% people as far as GDP is concerned. Simply put, GDP takes average. If the GDP growth rate is between 7-9%, it doesn't mean that people are wealthy and happy. 

As mentioned earlier, GDP increases when more money is spent. This is the reason that most of the liquor shops and petrol pumps were kept open even during the complete lockdown days. Essential items like medicines and vegetables were also being sold. If people spend money, GDP increases. If products are exported, GDP is increased. If Indians purchase products that are manufactured in India, GDP increases. If people buy stuff from local vendors and nearby offline stores, GDP increases. 

In the name of development, humans have occupied everything. There is no place left where humans haven't traveled. Technology is evolving. 5G is about to be introduced in India. Bullet Trains will be running in our country. Forget the green revolution and the white revolution, the digital revolution has set its foot. Electric cars will be running by 2050. 

We need to understand that GDP isn't everything. There are other important factors as well. Technology is being used to serve people. If people aren't happy, development doesn't matter. If people aren't laughing, GDP doesn't matter. If the government is spending too much money on building roads every year, GDP increases. This doesn't mean that it is helping people. Every year, millions of people die on Indian roads due to potholes and manholes. Bridges and tunnels are collapsing within a few years. Buildings are being broken after 10 years. All these things might boost GDP but it isn't helping the common man. Simply put, the rich get richer and the poor get poorer. GDP doesn't even matter. If a common man isn't happy, GDP means nothing. 

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Disclaimer: The author doesn't want to provide false information and misled people by any means. The information listed above is written after proper research by the creator. Some miscreants might try to trick people by adopting unfair means. 

It is hereby notified that the author won't be responsible for any loss arising thereupon. The comment section has been disabled due to privacy concerns. For any queries/suggestions, mail at [email protected]. 

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Authored by Aditya Rana:-

Aditya Rana, Blogger, YouTuber and Engineer is a published author and writer. He believes in simple living and high thinking. He thinks that there is no limit to what you can achieve in life. He wants to make an impact by sharing his knowledge. 

He is interested in Lifestyle, Motivation, Education, and other topics of general interest. He loves reading, playing cricket and he is a health-conscious person. He believes that anyone can scale the heights of success with strong determination and consistent efforts.