Reading the GDP data

Ministry o0f Statistics and Program Implementation has released an estimated data on GDP, which shows a growth rate of 8.7% in 2021-22. But the growth trajectory is neither uniform nor broad based, igniting the inequality in growth process and in the economy.

What is GDP and its components?

• Gross Domestic Product: The monetary value of all the goods and services produced within the political boundary of a country is known as Gross Domestic Product (GDP).
• Components of GDP: GDP consists of four major components; private consumption (C), expenditure by private investors(I), expenditure by the government (G) and net exports of the country (X-M; difference between total exports and total imports)
• Formula to calculate GDP:

GDP= C + I + G + (X-M)