GDP of India

Gross Domestic Product: Meaning and Calculation The gross domestic product or GDP of any country is a yardstick to measure the size of its economy. It is defined as the total market value of all final goods and services of a country in a given period of time (normally a year). It is also considered the sum of value added at every stage of production of all final goods and services produced within a country in a given period of time.

GDP = consumption + gross investment + government spending + (exports ? imports), or,
GDP = C + I + G + (X-M)

Indian GDP
The Indian economy is the 12th largest in USD exchange rate terms. India's GDP has touched US$1.25 trillion. India is the second fastest growing economy of the world and during the fiscal year 2007-2007 India's GDP growth rate was nearly 9.5%. Indian economy is a diverse one, encompassing agriculture, textiles, handicrafts etc. Although many people are still dependent upon agriculture, the service sector is also playing a very important role in the Indian economy. Indian GDP per capita is $1,089 which is very nominal. But the crossing of Indian GDP over a trillion dollar mark puts India in the elite group of 12 countries with trillion dollar economy.

Contribution of Various Sectors in GDP
The contributions of various sectors in the Indian GDP are as follows:

It is great news that the service sector is contributing more than half of the Indian GDP. It takes India one step closer to the developed economies of the world. Earlier mainly it was agriculture which contributed in the GDP.

The Indian government is still looking up to improve the GDP of the country and so several steps have been taken to boost the economy. Policies of FDI, SEZs and NRI investment have been framed to give a push to the economy and hence the GDP.