What is GDP

What is GDP

What is GDP Person who invented the GDP was Simon Kuznets and I want limit is located there it's a very simple concept the net production in value terms in a country in a year now why net because if I produce steel and then I produce a bicycle with it with the steel and account both steel and bicycles then it's double-counting so to reduce double-counting you take net so if you if you include in production bicycles then you will automatically deduct the steel that Monica so you need a mathematically a matrix I don't know how many of you have know about matrix matrix which then gives you how to analyze how to separate out the net production in the country

GDP of India 2020

then the question comes down the valuation how do you how do you know bicycles is in numbers steel is in tons how would you put them all together you put them together by considering the net value that means multiplying by the price well if you multiply by the price and the inflation takes place then production of the globe without your foot going on so you fix one base price and say for all the years to come if I will use this particular price so 19 2004 prices 2015 prices you know that try to do so one fixed price

enough how do you compare between these states you compare not by dividing by the exchange rate that exchange rate no market significance you state the price of India all the price of the United States and value all the

production of both countries in the same one price either you value it in American prices or value in Indian prices and then compare why because I have a haircut in a fancy five-star hotel which is as good as the best in

• What is GDP and how is it calculated?

• IMF के अनुसार GDP में फिर से गिरावट
   

America they have got but then it will cost ten times more than what appear

here so naturally if you multiply by the dollar and converted by the exchange

rate you will get a distorted picture so therefore if you are the same product should be priced by the same path here you can mcdonald hamburgers here and there you see the price in America and see the price media so much difference the same product so to get the idea you select one country in this called

purchasing power parity, by that India is already number three in the world of

cost per capita dollar because our huge population we are much below maybe

80s or 90s in the world but in terms of GDP which is a measure of your material strength that it is third largest in the world after America China

 What is GDP