Do you know about GDP!

What is GDP?

We often hear that GDP has increased and decreased in TVs and in newspapers. Otherwise most of us may not know what this GDP is. So what is actual GDP? How is it calculated? Let us now understand why it is so important.

GDP means Gross Domestic Product. This means that the total value of all finished goods and services sold in a country over a period of one year is GDP.

For example, suppose there is a supermarket. Suppose it sells a soap worth Rs 20 a day, a chocolate worth 10 and a book worth 50. Then its GDP per day would be 80 rupees. Similarly, the total value of goods produced and sold throughout the country is the GDP of that country.

However, not all products fall into this GDP. For example, if a Japanese company sells any machine in India, it will not reach our GDP. Japan joins the country's GDP.

Also not to count secondary items in this GDP. Only the end items should count. For example, suppose a car has a tire and a seat. We cannot use them directly. But if you make a car with them you can use it. Here tire and seat are secondary goods, car is the ultimate item. The value of these ultimate commodities is only calculated in GDP.

And we hear that our GDP has fallen, which means that our goods are not sold in our country. That means we buy more goods from neighboring countries. If this happens, the companies in our country will not produce as much goods as they do not buy the goods manufactured in our country. Lack of product does not benefit the company. There will be no new jobs, or layoffs.

If our country's GDP is to rise again, we need to buy more of our goods. It is then that companies in our country make most of the goods. Their jobs will also increase.