What is GDP, its 5 components and current Scenario ?

Today in this topic I gonna tell about the GDP and what is the reason for the fall down of the GDP of India.

What Is GDP and its measure ?

The full form of GDP was(Gross Domestic Product). Known as the total values of goods and services which are produced in the country.

Well GDP can be measured in three methods. Let’s check about this:-

What is GDP, its 5 components

MEASURE of GDP

  • Output Method:- Well these measures can be done to check the market values of all the goods and services which are produced within the boundary of the country.
  • Expenditure Method:-In this measure the methods in which total expenditure incurred by all the intensities on goods and services within the domestic boundaries of a country.
  • Income Method:- In this method, the measures are taken by the total income earned by the factors of production which is labor and capital within the domestic boundaries of a country.

But in India, the contributions to GDP which are mainly divided into 3 sectors of the field like agriculture, allied services, industry, and service sector. Well in India GDP is measured as the market price.

Apart from that, there are 5 components of GDP. Let’s know more about that.

5 Components of GDP

  • Private Consumption.
  • Fixed Investments.
  • Change in Inventors.
  • Government purchases.
  • Net Export.

Apart from that, there are some countries which have the largest GDP(Gross Domestic Products). 

LIST OF COUNTRIES

  • United States:- The united states share the GDP of $21.44 trillion which is recorded the World’s highest economy.
  • China:- China shares a GDP of $14.14 trillion. Apart from that China has experienced exponential growth in the last few decades. China is also known as the ” World’s Factory” by given its huge manufacture and exporting hub of the World. 
  • Japan:- Japan shares a GDP of $5.15 trillion. and also counted the third-largest economy in the World. 
  • Germany:- Germany also counted the fourth largest economy of the World by sharing the GDP of $4.4 trillion. While the nation has been more dependent upon capital goods exports. Even Germany also launched industries 4.0 which also establish the country as a lead market and also provider of advanced manufacturing solutions.
  • India:- India is also known as the fastest growing and counted in the fifth-largest economy and shares a GDP of $2.94 trillion. But India ranked thirds when GDP is compared in the terms of purchasing power parity 11.33 trillion. The manufacturing and services sectors make India more strongly. Even today, its service sector is the fastest-growing sector in the World, which contributes more than 60% of the economy and 28% of employment.
  • United Kingdom:- United Kingdom counted in the sixth-largest economy in the World and shares a GDP of $2.83 trillion. But the economy of the UK is up by the services sector by contributing 75% of the GDP. But the agriculture of Europe is not a major contributor to its GDP.
  • France:-France is known as the most visited country in the World and also known as the third-largest economy of Europe. by having a GDP of $2.78 trillion. Apart from that country also offers a high standard of living to its peoples which huge reflected its GDP. But in recent years the GDP has been slowed down. Apart from that tourism is always remain important for their economy. France is also known as the leading Agriculture producer also its also counted World’s sixth-largest agricultural producer and second-largest agricultural exporter.
  • Italy:- Italy is counted World eight economy by a GDP of $2.26 trillion. But its unemployment rates continue to rise. But on the other side, their exports and business investments are recovered.
  • Brazil:- Brazil is known as the largest and most populous nation in Latin America. By GDP of $1.87 trillion. Brazil is counted in the ninth-largest economy in the World. Brazil is also a part of BRICS along with Russia, China, India, and South Africa. 
  • Canada:- Canada shares a GDP of $1.84 trillion. While the service sector is the major sector. Canada also registered a growth of 3% in 2017.
  • Russia:- Russia is known as the largest country on land. Even counted 11th largest in the economy with a GDP of $1.63 trillion. But in the year of 1990s, it was not a good time for Russia. The country also dependent on oil export.
  • South Korea:- South Korea shares a GDP of $1.63 trillion and counted the 12th largest economy in the World. In the past country make a progress to establish a hi-tech company.But in the 1960’s if we check the per capita is poorest. But in 2004 the country enters dollars in industrialization and international now it is counted among the top exporters in the World.
  • Spain:- Spain counted in the 13th largest economy in the World and has a GDP of $1.4 trillion. Spain also replaced the United Kingdom to become the second most visited country in the World. It also played a crucial role in the Agriculture sectors also. The country also a big exporter of olive oil, wine, and pork.
  • Australia:- It was counted the 14th largest economy in the World by GDP of $1.42 trillion. But if you check the last two past decades have low unemployment, low public debt. Apart from that country also have rich natural resources and even an exporter of energy and food.
  • Mexico:- It was the second-largest economy in Latin America and counted the 15th largest economy in the World with a GDP of $2.57 trillion. It was also contributed to Automotive, oil, electronics.
  • Indonesia:- It is counted largest economy in South-east Asia and 16th largest in the World with a GDP of $1.02 trillion.
  • Netherlands:- It was the sixth-largest economy in Europe and known as the 17th largest economy in the world with a GDP of $ 189.49 billion. The country also has a high mechanized with highly productive agricultural sectors which makes top agricultural exporters. It is also a major player in World trade also.
  • Saudi Arabia:- It is known as the largest exporter of oil its contribute 50% in oil and gas. It was also rich in other natural resources like iron, ore, copper, gold.
  • Turkey:- It is counted in 19th largest economy in the world with a GDP of $766.433 billion.
  • Switzerland:- It is known as the most stable market economics in the World. And known as the 20th largest economy in the world with a GDP of $715.36 billion. Even that country also offers a high standard of living for its people’s. The country also has skilled workers and low unemployment.

CURRENT SCENARIO and Point of View

As you know this year 2020 due to epidemic, not even India GDP slowed down all the countries GDP have been fallen down dramatically.My opinion If we want to increase more GDP first increase the exporters and start the investment in those countries which required the investment to make bilateral relations also. 
I hope you like my today topic.THANK YOU!

admin

Hello, My name is HARI SHANKAR from a small village of Bokaro District of Jharkhand state. I have been doing blogging for last 5 years. In this website you can find different useful articles that you can share with your friends and gain knowledge about different field. Kindly support me so that I can do my best.

View all posts by admin →

Leave a Reply

Your email address will not be published. Required fields are marked *