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What is GDP? Explain the process to calculate GDP.

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The GDP, which is the Gross Domestic Product, is the value of all final goods and services produced within a country during a particular year. The value of final goods and services produced in each sector during a particular year provides the total production of the sector for that year. And the sum of production in the three sectors gives what is called the Gross Domestic Product (GDP) of a country. The GDP shows how big the economy is.

In India, the mammoth task of calculating GDP is undertaken by the Central Government. This ministry, with the help of various government departments of all the Indian states and union territories, collects information relating to total volume of goods and services and their prices and then estimates the GDP. The GDP is usually calculated on annual basis. It includes private and public consumption, government outlays, investments and that occur within a defined territory

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