m
m


 
Sukhdeep Singh
Ú m

m w

 

 ¬
 is the 
 
 


  in one country, for a financial year
and not concerned of who owns the productive assets.
For example, India·s
 includes the profits of a
foreign firm located in India even if they are remitted to
the firm's parent company in another country.

m It measures the volume of production within a
 


 .
m It does not correct for the portion of countries
production carried out by using foreign¬owned capital.
V 
V 


m 3y Income
m 3y Expenditure
m 3y Consumption


V 

 = C + + I + NX

C = All private consumption

= All government spending
I = Investment by businesses
NX = The country·s net exports (total exports ² total
imports)

 Vm
m

m Indian economy is 12th largest economy in the

world
m India is the second fastest growing economy
after China
m
 of India is 8.90% in the quarter of 2010
m Service sector is the major source of economic
growth.


Ú 


 m  



m The value of all final goods and services produced by
a country·s factors of production and sold on the
market in a given time period
m It is the basic measure of a country·s output.
m Indian company doing economic activity in other
country will be included in N.
 
m N is calculated by adding up the market value
of all expenditures on final output:
m Consumption
m The amount consumed by private domestic residents
m Investment
m The amount collected by private firms to build new plant and
equipment for future production
m overnment purchases
m The amount used by the government
m Current account balance
m The amount of net exports of goods and services to foreigners

 

m
 = ross
omestic roduct

m N = ross National roduct
m N =
 +  






Ú
 m 
m
The difference between
 and N comes down
to the two factors: ownership and location.
m
 measures economic output based on location. If
economic output is occurred in India, then it is
included in
.

m N measures economic output based on ownership.

If the economic outputs are owned by Indian company,
they are included in N
  



.
 V 

m eneral Motors owns a plant in India

m The plant·s output is included in
, because
it is located in India.
m However, the eneral Motors plant is owned by
a corporation based in United States, the
output is not included in the ross National
roduct ( N)



m 





 V 
m Úhile Infrastructure rowth was initiated in India,

 was 3.5% in 1996¬1997 and the next year,
this figure was 4.6%.
m
 increased after the Indian government
opened the Infrastructure sector 


   !
m This was done in order to boost the Infrastructure
Sector in the country. The result of opening the
sector has increased at the rate of
 at 8.9%.



     


 



 
  

 

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