GNP is another measure for National Income of the country.  Indian economy is not closed economy but an open economy. India has transactions with the rest of the world in the form of exports, imports loans etc. This give rise to the concept of national or domestic Income.  In case of GDP, we calculate the… Continue reading Gross National Product (GNP)

Although the GDP is a pretty good indicator of the economy, there are some disadvantages of the GDP, including the concepts that the GDP does not take into consideration.  Rising GDP of a country does not necessarily mean the rise in the welfare of citizens. This is because the rise in GDP may be concentrated in the… Continue reading Drawbacks of measuring economic growth in GDP

United Nations Development Programme publishes Human Development Index as a part of their Human Development Report.  While publishing HDI they consider important factors such as   Health   Life expectancy at the time of birth  Education   Expected years of Schooling for a school age children  Mean years of prior schooling attained for an adult aged 25 years or older … Continue reading Human Development Index (HDI) and other Indices of UNDP

What is Gross Domestic Product (GDP)?  Gross Domestic Product is defined as the total market value of all final goods and services produced in a year in a domestic territory of a country.   The word “domestic” in Gross Domestic Product pertains to the fact that only the goods and services produced within a country are counted… Continue reading Gross Domestic Product (GDP)