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GDP explained | What is GDP? | How is GDP calculated? | Income vs Expenditure Approach

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What is GDP (Gross Domestic Product) -- GDP is the total monetary value of the final goods and services produced within the geographical boundaries of a country in a given period of time. For a more detailed explanation of the terms: GROSS: The depreciation in the capital assets of the country, occurred during the year is inclusive. This means, the monetary value of loss of assets due to production activities had not been deducted. If we do deduct it, it becomes NET. DOMESTIC: Domestic implies, produced within the geographical boundaries. It does not take into account the country's earning outside its geographical boundaries, or foreign remittances. Neither does it deduct transfers outside of the country. If these remittances are added and the transfers deducted, the value becomes NATIONAL. PRODUCT: The final goods and services. Final implies that intermediate goods are not taken into account. For example, wheat sold for final consumption to consumers will be taken into account, but the amount of wheat sold to bakeries for further production of bread will not be added. The value of bread will be taken into account which will be inclusive of the value of its input: wheat. This is done to avoid double counting. Find us on Social Media and stay connected: Facebook Page - https://www.facebook.com/InvestYadnya Facebook Group - https://goo.gl/y57Qcr Twitter - https://www.twitter.com/InvestYadnya
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Text Comments (50)
ceaser born (2 days ago)
I am not clear with the GDP calculation. By definition, GDP is the value of all final goods and services produced within the geographical boundaries of a country. So why do we consider Net Foreign Factor Income in calculations for GDP at Factor cost? (NFFI = income earned by the rest of the world in India – income earned by India from the rest of the world ). As per the mathematical formula of NFFI here, don't you think NFFI calculation involves earnings made by Indians and Indian entities in foreign countries, so going by the definition of GDP, NFFI should not be included in GDP calculations. Please clarify my doubts.
Narasimha k (23 days ago)
Nice explanation sir
Bhim karki87 (1 month ago)
Sir please explain me clearly what is ppp and nominal gdp
joshua otieno (1 month ago)
You have really made this complex topic much easier sir
Cosmo John (2 months ago)
By definition , GDP sounds nice. In practice, GDP can be faked because no one outside the gov has all the data and no one can independently audit the figures to verify it's accurate to the decimals. China cannot audit the gdp of USA and vice versa. GDP is Political number. Politics is full of lies
Nandkishor Gokhe (2 months ago)
awesome explanation. Thank you
Happy we could help... Pls do subscribe to our channel and tell your friends too...
Re Start (2 months ago)
thank u sir
Ravi Kumar (2 months ago)
Voice is not clear and audible
Raghu N (2 months ago)
What is current account deficit please explain sir
Check here - https://www.youtube.com/watch?v=GXiClzbE0FQ&t=173s
Raghu N (2 months ago)
Well explained
Vikas Chaudhary (3 months ago)
What is depreciation
luffy uzumaki (4 months ago)
I hate Indian accent.
chinchin 1 (1 month ago)
and I hate people with retarded minds like you
Jorlonel 69 (4 months ago)
Nice Indian accent
Yuvi Shree (5 months ago)
Thank you so much for the video... My seminar topic is entirely covered 😊
Jonprit Pritam (6 months ago)
thank you very much
Always there to help...
Daniel Mbugua (6 months ago)
😂 If you decide to watch TV and not grow your own food and now have to purchase it..
360man hitesh (6 months ago)
More info about GDP GVA GNP click here - #360mangdp
Nani Chinna (2 months ago)
Thanq sir
nipun jain (6 months ago)
Why GDP shown in percentage rather than in numbers? How do we compare it with previous years?
:) Its same why our portfolio returns are shown in percentage and not in numbers. Growth %age gives us much better idea.
Arif Malik (7 months ago)
U r fabuloussss sir i love ur vedios 😄
Thank you for this comment, you made our day...
Khan Kn (7 months ago)
Plz sir in urdu
Urdu mei nahi, hindi mei ye video ye rahi: https://www.youtube.com/watch?v=GR_JxZWKclA
Gourav Guruji (8 months ago)
I did not understand Calculation complexities Will you make it more better for us
Tech Mystic (6 months ago)
Plz tell capital goods again more clearly with another example
Happy to help you. Let us know where it is not clear.
Vutukuru Rohit (8 months ago)
Thank u for explaying thoroughly about GDP
Rishie Chandan (8 months ago)
Dude, I lost you somewhere
Tell us where?
Dhanraj Praveen (8 months ago)
Thank you so much for the video. it is helpful for my exams
Pavita Yadav (9 months ago)
thejunkie83 (10 months ago)
That accent tho....
ankita patel (1 year ago)
when calculating GDP, why do we only include final goods and services?
Because, if we will include intermediates as well then, same good can be counted twice.
Minal Bhere (1 year ago)
Ugh! Finally understood what exactly GDP is! Thanks a lot!
Means a lot for us. Please tell your family & friends also about us.
Very clear and awesome explanation. Thank you.
Happy we could help. Pls do share our videos with your friends and family and help us spread financial awareness.
YASH GALA (1 year ago)
Thank you sir nice video Awesome explanation of GDP 👍👍👍
Thank you. Pls do share our videos with your friends and family and help us spread financial awareness...
sai ram charan kumar (1 year ago)
Now days many foreign cell phone companies like vivo , oppo , mi are assembling there products in India however spare parts are imported . Will this come under intermediate goods or final goods. Will it be considered to caluculate GDP ?
Vic key (9 months ago)
sai ram charan kumar it's been three month since you have asked this question.. I hope u found the answer by now. India has now 💯% fdi in mobile manufacturing that's y the boost in mobile production. However to calculate GDP the duties/expenditure on import of units would be deducted from the value of mobiles assembled in India. Don't know for sure. But If u found the right do share.
shubham kukshal (1 year ago)
AH K (1 year ago)
pls explain GVA also,,,, and this information is really very useful and your way of explaining make this complex topic easy to understand
Sure, we will work on GVA video as well.

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