Economic performance is an issue which attracts everyone and also affects everyone. It is the issue where even rogue states have to thing on it. In today’s time when India is facing an imminent threat of war from its two neighbours, slowing down of GDP is not good news. As per NSO (National Statistics Organization) data released on Friday evening, India is growing at a rate of 5% in the first quarter. And since the last two quarters, India GDP is slowing down. An economy is said to be hit by the recession when its economy or GDP show negative growth in consecutive two quarters. So we can say that the recession has hit the Indian economy.
Also at this time when the government can be seen taking no stringent action people are remembering Dr Manmohan Singh. And his intellect, how he drove the Indian economy during the 2009 global recession.
Today Dr Singh has offered his help to the government in improving the economic condition. But our finance minister hit back saying to learn from us.
Let’s just understand what GDP is before understanding the whole economy.
GDP stands for Gross Domestic Product. It is the sum of all the final goods and services produced within the geographical territory of an economy for a given period of time.
Here territory concept means if a USA or UK company set up its operation or company in India then its income will be included in the GDP of India.
Time is usually for one year.
NDP stands for Net Domestic Product which is the difference between GDP and depreciation.
Depreciation means a reduction in the accounting value of an asset because of wear and tear.
GNP stands for Gross National Product. This means the value of goods and services produced by Indians or any other nation in abroad is added to the GDP the value of the foreigners who are working in India or any other nation is subtracted.
NNP stands for Net National Product. This is the difference between GNP and Depreciation.
India GDP is 2.3 trillion and ranked 7th in the world.