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Answer Posted / rajesh
The method of Calculating India GDP is the expenditure
method, which is, GDP = consumption + investment +
(government spending) + (exports-imports) and the formula
is GDP = C + I + G + (X-M)
Where,
C stands for consumption which includes personal
expenditures pertaining to food, households, medical
expenses, rent, etc
I stands for business investment as capital which includes
construction of a new mine, purchase of machinery and
equipment for a
factory, purchase of software, expenditure on new houses,
buying goods and services but investments on financial
products is not included as it falls under savings
G stands for the total government expenditures on final
goods and services which includes investment expenditure by
the government, purchase of weapons for the military, and
salaries of public servants
X stands for gross exports which includes all goods and
services produced for overseas consumption
M stands for gross imports which includes
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