Finance Explained

Hello people welcome to my another blog, in these blog we’ll learn about GDP and more types of it. As alot of people know about GDP, but there’s more in the finance to learn to understand the country’s economical situation. In these blog we’ll not just learn GDP but also NDP, GNP, NNP and PCI. I don’t know in which year or at what date you are reading these but in 2022 the Q1 of GDP is $3.469 trillion. Share of Indian economic is 7.5% of world economy by PPP(Purchasing power parity) terms. The Q1 of 2022-23 the growth rate of GDP is 13.5%.

The GDP (Gross Domestic Product) is a monetary measure of the market value of all the final goods and services produced and sold in specified time with in the financial year. The Domestic itself means within the territory border of a country and within that border all the company’s are considered. Wheather Indian or foreign companies. The GDP also helps to compare the growth of every country and progess in economic sector internationally. The GDP is calculated in which all the foreign and Indian companies final produced goods and services are considered.

The GNP (Gross National Product) is a monetary measure used to get the gross value produced by the Indian companies and income of Indian employee are considered. The foreign institution are not added in GNP. It helps us to understand how much a country has made income.

As we got GDP & GNP has a Gross value now. There can also be some deduction and depreciation on the goods and services. On Indian and foreign companies both. We can now calculate the Domestic & National Product.

NDP (Net Domestic Product). These monetary measure is used when there is any deduction or depreciation in Indian, and foreign companies working in our country are taken into consideration. The goods which are not sold and are lost by fire, climate change or broken by any purpose are consider.

NNP (Net National Product). In NNP there is no foreign companies are taken and also have added the income of employee of the country. The national from NNP means the people or Citizen of that country.

PCI (Per Capita Income). The PCI is used to calculate the average income of a person of particular area within a specified year. The PCI is Calculated by dividing the areas total income by its total population.

These was a small blog by these time. But i hope so you understand some from these blog. Thank you so much for reading the blog till here, it means alot for me. If you liked this blog than also check out my last blog on the Bible of stock market, the book review of ‘The Intelligent Investor‘ Thank you.