GDP & GNP related things

This is little bit information what I gathered for GDP & GNP related things, I hope it will be helpful for you guys..........

Difference between GDP & GNP

GDP	GNP
GDP (Gross Domestic Product) is defined as the total market value of all final goods and services produced within the country’s geographic border in a given period of time (usually a calendar year). GDP measures economic output based on location. An American company with a plant in India will actually contribute to Indian GDP.	GNP (Gross National Product) measures the total amount of goods and services that a country's citizens produce regardless of where they produce them. GNP measures economic output based on ownership An American firm operates a plant in Indian, then the profits that the firm earns would contribute to U.S. GNP.

Points to remember while calculating India GDP

• There are different sectors contributing to the GDP in India such as agriculture, textile, manufacturing, information technology, telecommunication, petroleum, etc.
• The different sectors contributing to the India GDP are classified into three segments, such as
• Primary or Agriculture sector,
• Secondary or Manufacturing sector and
• Tertiary or service sector.

The components used to calculate GDP include:

Personal Consumption
-- Durable goods (items expected to last more than three years)
-- Nondurable goods (food and clothing)
-- Services & etc

Government Expenditures
-- Defense
-- Roads
-- Schools & etc

Investment Spending
-- Nonresidential (spending on plants and equipment), Residential (single-family and multi-family homes)
-- Business inventories & etc

Net Exports
-- Exports are added to GDP
-- Imports are deducted from GDP

A common equation used to calculate GDP is as follows

GDP = Consumption + Government Expenditures + Investment +Exports – Imports

GDP GROWTH RATES

Quarterly GDP for Q3 of 2007-08 was expected Rs. 8, 24,075 crore, as against Rs. 7, 60,386 crore in Q3 of 2006-07, showing a growth rate of 8.4 per cent over the corresponding quarter of previous year.

Recent World Bank Figures for GDP…

The Indian economy is the 12th largest in the world. That is, India's gross domestic product stands at $1.171 trillion.

However, in terms of purchasing power parity, India is the world's fourth largest economy. Its GDP in purchasing power parity terms is at $3.092 trillion.

[Purchasing power parity (PPP) is an economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power.]

1. United States

The American GDP is at $13.812 trillion, making it the world's largest economy. It accounts for more than 25 per cent of the entire world's GDP! In terms of purchasing power parity too, the United States is the world's leading economy.

2. Japan

Japan, with a GDP of $4.377 trillion, is the world's second largest economy. However, in terms of purchasing power parity, Japan is ranked third by the World Bank. It's GDP in PPP terms is $4.283 trillion.

3. Germany

Germany is the world's third largest, with its GDP at $3.297 trillion. But in PPP terms, Germany is the world's fifth largest economy. It's GDP in PPP terms is at $2.752 trillion.

4. China

China, the Asian giant, is the world's fourth largest economy with a GDP of $3.281 trillion; but in purchasing power parity terms it ranks second at $7.055 trillion.

5. United Kingdom

Its GDP is at $2.728 trillion. In purchasing power parity terms, the United Kingdom's GDP stands at $2.082 trillion making it the seventh largest in the world.

6. France

The French GDP is at $2.563 trillion, making it the world's sixth largest economy; but in terms of PPP, it is the world's 8th largest (GDP in PPP terms, $2.054 trillion).

7. Italy

Italy's GDP in absolute terms is at $2.107 trillion. However, in purchasing power parity terms its GDP is at $1.780 trillion and its rank is 10th.

8. Spain

Spain is the eighth largest economy with its GDP at $1.429 trillion. In purchasing power parity, however, it slips to the 11th spot ($1.373 trillion).

9. Canada

The Canadian GDP stands at $1.326 trillion, making it the world's ninth largest economy. In PPP terms, however, it stands 14th in the world. Its GDP in PPP terms is at $1.178 trillion.

10. Brazil

The Brazilian economy too has been growing at a scorching pace. It is the world's 10th largest economy with a GDP of $1.314 trillion. But in terms of purchasing power (GDP - $1.834 trillion), it is better placed at number 9.

11. Russian Federation

In absolute GDP terms, Russia -- at $1.291 trillion -- is the world's 11th largest economy, but it jumps to the 6th spot in terms of purchasing power parity ($2.088 trillion).