Question

Write a detailed note on the measurement of GDP.

Answer 1

1. The GDP Gross Domestic Product of a country measures the market value of goods and services produced during a particular period of time.
2. In the measurement of GDP, the GDP of the previous years is not included. Eg: the GDP of 2018 will include the market value of goods and services produced only during 2018.
3. In India, GDP is measured both annually and quarterly.
4. The Annual GDP financial year (2017-18) is from 1st April 17 to 31st March 18.
5. The quarterly GDP for any financial year is calculated by dividing the year into 4 quarters with 3 months each.

1^st Quarter – April, May, June (Q₁)
2^nd Quarter – July, Aug, Sept (Q₂)
3^rd Quarter – Oct, Nov, Dec (Q₃)
4^th Quarter – Jan, Feb, March (Q₄)
(vi) The GDP of Q₂ will not include the GDP of Q₁ and vice versa. This means, only the goods and services produced in that quarter are included for the measurement of GDP.