GDP all methods explanations with examples,team members =HIRDAYRAJ SAROJ, APURVA SATIA, ADITI MULE, from SVIMS College Wadala,Mumbai BATCH-MMS I (2016-2018)

1. TEAM INTRODUCTION
Group Members : Apurva Satia
Hirdayraj Saroj
Aditi mule
GDP- A management measurement tool.
Title: Understanding GDP as a management
measurement tool.

2. MANAGEMENT TOOL?
A conceptual
management tool is a
structured, model based
way of proceeding to
improve the problem
solving or decision
making process either
individually or for a
group in an
organizational context.

3. ECONOMY OF INDIA
•The economy of India is the seventh-largest economy in
the world measured by nominal GDP
•The Third-largest by purchasing power parity(PPP)
•India also topped the World Bank’s growth outlook for
2015-16 for the first time with the economy having grown
7.6% in 2015-16 and expected to grow 8.0%+ in 2016-17
•India has the one of fastest growing service sectors in the
world with annual growth rate of above 9% since 2001

4. WHAT IS GDP?
•THE GDP IS DEFINED AS THE MARKET VALUE OF ALL FINAL
GOODS AND SERVICES PRODUCED WITHIN A COUNTRY IN A
GIVEN PERIOD OF TIME
•IT IS ONE OF THE MEASURE OF THE SIZE OF THE ECONOMY.
•IT IS AN INDICATOR OF ECONOMIC HEALTH OF ANY
COUNTRY.
•IT CAN MEASURE SPENDING ON ALL GOODS AND SERVICES
OR IT CAN ALSO MEASURE ALL INCOME EARNED.

5. GDP?
GDP COUNTS ONLY FINAL
GOODS
•Final goods- Finished
goods and services
produced for the “ultimate
user”(end consumer)
•To avoid double counting
intermediate goods must
be excluded

6. MEASUREMENT
GDP IS MEASURED BY NATIONAL STATISTICAL
AGENCY.
SUCH AS:
• INDIA- MINISTRY OF STATISTICS AND PROGRAMME
IMPLEMENTATION
• RUSSIA- FEDERAL SERVICE OF STATE STATISTICS
• UNITED STATES- BUREAU OF ECONOMIC ANALYSIS

8. EXPENDITURE METHOD
GDP
Government
spending
Consumption
Gross
investment
Exports-
Imports

9. EXPENDITURE METHOD
GDP = C + I + G +(X-M)
C= CONSUMPTION(Private consumptions)
I= INVESTMENT(Bank,shares etc)
G=GOVERNMENT SPENDING(wages,purchases,etc)
X=EXPORTS(mfgt in india)
M=IMPORTS(mfgt out of india)

10. PRODUCTION METHOD
GDP
GDP AT
FACTOR
PRICE
TAXES ON
PRODUCTS
AND IMPORT
SUBSIDY ON
PRODUCT

11. PRODUCTION METHOD
GDP(MARKET PRICE) = GDP(FACTOR PRICE)
+ INDIRECT TAXES – SUBSIDY
Σ
N
i + 1
GVA i
In
lakhs
GDP=VALUE ADDED

12. VALUE ADDED METHOD
Sum total of gross value added by all firms economy

13. VALUE ADDED CONCEPT
Farmer – Wheat produce – sell to mill 10 kg @
Rs.500 – sold to Bakery 10 kg 600 Rs. – sold to
customer @ Rs.800
WHAT GDP WAS PRODUCE ?
500 + 600 + 800= 1900 RS ? NO
GDP PRODUCED = Money value of time = 500 +
300= 800 Rs.

14. FACTOR COST & MARKET PRICE
1 KG SEED 10 DVD TOTAL GDP
Original
Cost(factor Cost)
500 Rs 100 Rs. 600 Rs.
-- Government
subsidy
-50 0 Govt involved
-50+10
+VAT/Indirect taxes +0 +10 -40
Market price 450 110 560(Final
good)
Factor cost is orignial value
*Remember subsidy Impact on Income Hence (-)
*Indirect taxes impact on Income Hence (+)

15. INCOME METHOD
GDP
RENT
INTERESTS PROFITS
WAGES

16. INCOME METHOD
GDP = W + P + IN + R
W=WAGES
P=PROFIT
IN=INTEREST EARNING
R=RENT
If someone expenses than someone incomes

19. HOW TO ACHIVE 10% GDP
GROWTH
•SPECIAL ECONOMIC ZONES FOR
EDUCATION(SEZFE)
•EMPOWERING RURAL INDIA
•HEALTH CARE CITIES
•RURAL MALLAS
•INDUS ECONOMIC FREETRADE ZONE(IEFTZ)

20. DRAMATICALLY DIFFFERENT
WORLD
•ECONOMIC SIZE
•ECONOMIC GROWTH
•CURRENCY MOVEMENTS
•BY 2025 BRICs ECONOMIES OVER HALF AS LARGE
AS THE G6
•GLOBAL DEMAND PATTERNS

21. THANK YOU