Aartee Mishra is teaching live on Unacademy Plus
Daily Lecture Series Ramesh Singh's A brief Summary of Indian-Economy Overview Hindi unacadeny By Aartee Mishra
l am Aartee Mishra Graduated from Delhi University, Topper in all my semesters, Pursuing P.G and preparing for CSE. You can findall my courses at https:/unacademy.com/userIranianmishra2011 Also by Downloading the Unacademy Learning app from the Google Playstore
GDP Gross= Total Domestic Economic activity inside the boundary of country Product - Goods and services Only newly produced products are counted Transactions which are not counted: 1. Sale of goods services provided outside the domestic 2. Intermediate goods that are used to produce other final 3. Sale of used goods borders goods
GDP The different uses of the concept of GDP are as given below: Per annum percentage change in it is the 'growth rate' of an economy. For example, if a country has a GDP of Rs. 107 which is 7 rupees higher than the last year, it has a growth rate of 7 per cent. When we use the term 'a growing' economy, it means that the economy is adding up its income, i.e., in quantitative terms It is a 'quantitative' concept and its volume/size indicates the 'internal" strength of the economy. But it does not say anything about the qualitative' aspects of the goods and services produced It is used by the IMF/WB in the comparative analyses of its member nations.
GNP Gross Total National- Economic activity done by nationals of a country Product - Goods and services GNP GDP (+) NFIA NFIA Net Factor Income from Abroad Income of Indians abroad - Income of Foreigners in India
GNP Gross National Product (GNP) is the GDP of a country added with its 'income from abroad'. Here, the trans-boundary economic activities of an economy is also taken into account. The items which are counted in the segment 'Income from Abroad' are: Private Remittances: the net outcome of the money which inflows and outflows on account of the private transfers, by Indian nationals working outside of India (to India) and the foreign nationals working in India (to their home countries) Today, India is the highest recipient of private remittances in the world-as per the World Bank projected at $72 billion in 2015 (in 2013 it was $70 billion, the year's highest). China falls second (S 64 billion) in 2015 Interest on External Loans: the net outcome on the front of the interest payments, i.e., balance of inflow (on the money lend out by the economy) and outflow (on the money borrowed by the economy) of external interests. In India's case it has always been negative as the economy has been a 'net borrower' from the world economies
GNP External Grants: the net outcome of the external grants i.e., the balance of such grants which flow to and from India. Today, India offers more such grants than it receives. India receives grants (grants or loan-grant mix) from few countries as well as UN bodies (like the UNDP) and offers several developmental and humanitarian grants to foreign nations. In the wake of globlisation, grant outflows from India has increased as its economic diplomacy aims at the playing bigger role at international level In India's case it has always been negative (due to heavy outflows on account of trade deficits and interest payments on foreign loans). It means, the 'Income from Abroad' is subtracted from India's GDP to calculate its GNP. The normal formula is GNP = GDP + Income from Abroad. But it becomes GNP = GDP + (-Income from Abroad), i.e., GDP-Income from Abroad, in the case of India. This means that India's GNP is always lower than its GDP.
GNP V The different uses of the concept GNP are as given below: 1. This is the 'national income' according to which the IMF ranks the nations of the world in terms of the volumes-at purchasing power parity (PPP). For a detailed discussion on PPP 2. It is the more exhaustive concept of national income than the GDP as it indicates towards the 'quantitative' as well as the qualitative' aspects of the economy, i.e., the 'internal as well as the 'external' strength of the economy 3. It enables us to learn several facts about the production behaviour and on its product and how much it depends on the world
Difference between GDP & GNP GDP GNP Activities within bounadry of tvties by national inside a country by both citizen and foreigners Where it is produced and outside the territorial boundaries By whom it is produced If, GDP-GNP, means closed economy
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