What is GDP? by finschool.5paisa

Aman and his son were watching TV one fine day, when on the news they started talking about the expected GDP growth of India in the FY22.

His son, Aditya asked his dad, "What is GDP really? Everyone keeps talking about it."

Gross Domestic Product is the value of all the goods & services produced within the territory of a country in 1 year.

So that means the products that Aman got imported from China last month, they'll be included and in China's GDP. And only products produced in India will be included in India's.

GDP is calculated using product's Market Price. Market Price = Factor Price + Taxes

To avoid the problem of changing prices GDP is calculated taking in consideration a standard reference i.e. BASE YEAR, which is 2011-12.