Gross Domestic Product, also known as GDP is used all across the globe as the single standard indicator to measure the health and status of an economy. All important stakeholders of the economy including the media keep a very close watch on GDP estimates. It provides one single number representing the monetary value of all the finished goods and services produced within the borders of a nation in a specific period of time. All countries across the globe have different methods to arrive at their GDP.
GDP of India-
The Central Statistics Office (CSO) is responsible for all data for all macroeconomic data and record keeping. It conducts annual survey of industries and compiles indexes like – Index of Industrial Production (IIP), Consumer Price Index (CPI), Whole sale Price Index (WPI) etc. All this data including other indicators and data points are collected by CSO to arrive at GDP numbers.
Although the GDP of India is calculated using two different methods, the GDP at factor cost is reported in the media and is the most commonly followed figure.
It is calculated by collecting data for net change in value for each sector. Eight major sectors are taken into account to reach the final numbers in terms of ratio or percentage.