The full form of GDP is Gross Domestic Product. GDP stands for Gross Domestic Product. It is a measure of the economic performance of a country, representing the total value of all goods and services produced within its borders over a specific time period.
What is GDP?
GDP, or Gross Domestic Product, is a measure of the economic performance of a country. It represents the total value of all goods and services produced over a specific time period within a nation's borders. GDP can be calculated using three approaches:
How GDP is Calculated
Gross Domestic Product (GDP) can be calculated using three main approaches:
-
Production Approach
- Adds the value of all goods and services produced.
- Subtracts the value of goods used in production.
-
Income Approach
- Sums all incomes earned from production.
- Includes wages, profits, rents, and taxes (minus subsidies).
-
Expenditure Approach
- Calculates total expenditures in the economy using the formula: GDP=C+I+G+(X−M)GDP = C + I + G + (X - M)GDP=C+I+G+(X−M)
- Where:
- CCC = Consumption
- III = Investment
- GGG = Government spending
- XXX = Exports
- MMM = Imports
What is the rank of India in GDP?
India stands in the fifth place in the world GDP for 2024
What does GDP mean, and why is it important for understanding an economy?
GDP, or Gross Domestic Product, refers to the total monetary value of all goods and services produced within a country over a specific period, usually a year or a quarter. It serves as a crucial indicator of a nation's economic health and productivity, helping to gauge growth and compare performance across different countries. By analyzing GDP, policymakers and economists can assess economic trends, formulate fiscal policies, and make informed decisions that influence the broader economy. Additionally, GDP helps investors and businesses understand market conditions and potential investment opportunities.
Per Capita Income of India
As of 2023, India’s per capita income is approximately $2,484.80. This figure represents the average income earned per person in the country and is an important indicator of the overall economic health and living standards in India.
| Country |
Most Recent Year |
Most Recent Value |
| India |
2023 |
$2,484.80 |
Data Source: World Bank
How is Gross Domestic Product (GDP) calculated?
-
Production Approach:
This method calculates GDP by adding the value added at each stage of production for all goods and services.
GDP = Total Output − Intermediate Consumption
-
Income Approach:
This method calculates GDP by summing all incomes earned in the production of goods and services.
- Wages: Compensation to employees.
- Rent: Income from property.
- Interest: Earnings from investments.
- Profits: Earnings of businesses.
GDP = Wages + Rent + Interest + Profits + Taxes − Subsidies
-
Expenditure Approach:
This method calculates GDP by adding up all expenditures made in the economy.
- Consumption (C): Spending by households on goods and services.
- Investment (I): Business investments in capital goods.
- Government Spending (G): Expenditures on goods and services by the government.
- Net Exports (NX): Exports minus imports.
GDP = C + I + G + (X − M)
What is the GDP of India?
As of the latest data available on the IMF's World Economic Outlook Database:
- Real GDP Growth (Annual Percentage Change): 6.8%
- GDP (Current Prices): USD 14.59 trillion
- GDP per Capita (Current Prices): USD 2,732
- GDP based on Purchasing Power Parity (PPP): USD 10.12 trillion
- GDP per Capita (PPP): USD 7,860
Projected GSDP of Indian States and UTs
| Rank |
State/UT |
Projected GSDP (Rs Lakh Crore) |
Per Capita GSDP (Rs Lakh) |
| 1 |
Maharashtra |
42.67 |
2.89 |
| 2 |
Tamil Nadu |
31.55 |
3.50 |
| 3 |
Karnataka |
28.09 |
3.31 |
| 4 |
Gujarat |
27.90 |
3.13 |
| 5 |
Uttar Pradesh |
24.99 |
0.96 |
| 6 |
West Bengal |
18.80 |
1.57 |
| 7 |
Rajasthan |
17.80 |
1.67 |
| 8 |
Telangana |
16.50 |
3.83 |
| 9 |
Andhra Pradesh |
15.89 |
2.70 |
| 10 |
Madhya Pradesh |
15.22 |
1.56 |
| 11 |
Kerala |
13.11 |
2.95 |
| 12 |
Haryana |
12.16 |
3.25 |
| 13 |
Delhi |
11.07 |
5.13 |
| 14 |
Bihar |
9.76 |
0.59 |
| 15 |
Odisha |
9.28 |
1.50 |
| 16 |
Punjab |
8.02 |
1.95 |
| 17 |
Assam |
6.43 |
1.96 |
| 18 |
Chhattisgarh |
5.61 |
1.52 |
| 19 |
Jharkhand |
4.70 |
1.00 |
| 20 |
Uttarakhand |
3.94 |
2.95 |
| 21 |
Jammu & Kashmir (UT) |
2.63 |
1.32 |
| 22 |
Himachal Pradesh |
2.27 |
2.62 |
| 23 |
Goa |
1.21 |
5.96 |
| 24 |
Andaman & Nicobar Islands |
0.89 |
2.29 |
| 25 |
Meghalaya |
0.52 |
1.39 |
| 26 |
Manipur |
0.52 |
0.91 |
| 27 |
Sikkim |
0.52 |
5.19 |
| 28 |
Chandigarh |
0.49 |
3.33 |
| 29 |
Nagaland |
0.48 |
1.75 |
| 30 |
Mizoram |
0.48 |
2.32 |
| 31 |
Tripura |
0.27 |
1.75 |
| 32 |
Puducherry |
0.39 |
2.22 |
| 33 |
Arunachal Pradesh |
0.37 |
2.05 |
| 34 |
Dadra & Nagar Haveli and Daman & Diu |
NA |
NA |
Other Economic Indicators Related to GDP
- Inflation Rate (Average Consumer Prices): 4.6%
- Unemployment Rate: No data available on the unemployment rate in the current screenshot.
- Current Account Balance (USD Billions): -55.124 billion
Key Insights
India’s GDP Growth remains robust at 6.8%, showcasing continued economic expansion. GDP per Capita stands at USD 2,732, but in terms of purchasing power parity (PPP), it rises to USD 7,860, indicating better standards of living when accounting for price differences.
India's total GDP at current prices is approximately USD 14.59 trillion, reflecting the country's vast economic output.
Credit: Data sourced from the International Monetary Fund (IMF) World Economic Outlook Database.
10 Largest Economy in world 2024
| Rank |
Country |
Value ($) |
Growth Rate (%) |
GDP per Capita ($) |
| 1 |
United States (U.S.) |
$28.78 |
2.6 |
$85,370 |
| 2 |
China |
$18.53 |
5.0 |
$13,140 |
| 3 |
Germany |
$4.59 |
0.2 |
$54,290 |
| 4 |
Japan |
$4.11 |
0.7 |
$33,140 |
| 5 |
India |
$3.94 |
7.0 |
$2,730 |
| 6 |
United Kingdom (U.K.) |
$3.50 |
0.7 |
$51,070 |
| 7 |
France |
$3.13 |
0.9 |
$47,360 |
| 8 |
Brazil |
$2.33 |
2.1 |
$11,350 |
| 9 |
Italy |
$2.33 |
0.7 |
$39,580 |
| 10 |
Canada |
$2.24 |
1.3 |
$54,870 |
| 11 |
Russia |
$2.06 |
- |
- |
| 12 |
Mexico |
$2.02 |
- |
- |
| 13 |
Australia |
$1.79 |
- |
- |
| 14 |
South Korea |
$1.76 |
- |
- |
| 15 |
Spain |
$1.65 |
- |
- |
| 16 |
Indonesia |
$1.48 |
- |
- |
| 17 |
Netherlands |
$1.14 |
- |
- |
| 18 |
Türkiye |
$1.11 |
- |
- |
| 19 |
Saudi Arabia |
$1.11 |
- |
- |
| 20 |
Switzerland |
$0.94 |
- |
- |
This table provides a clear overview of the largest economies and their key economic indicators for 2024.
Data Source: World Bank
Top 10 Poorest Countries by Per Capita Income (2023)
Here’s a list of the top 10 poorest countries based on per capita income for the year 2023:
| Rank |
Country |
Most Recent Value ($) |
| 1 |
Burundi |
199.6 |
| 2 |
Afghanistan |
352.6 |
| 3 |
Sierra Leone |
433.4 |
| 4 |
Central African Republic |
445.0 |
| 5 |
Madagascar |
528.7 |
| 6 |
Mozambique |
608.4 |
| 7 |
Niger |
618.3 |
| 8 |
Somalia |
643.8 |
| 9 |
Congo, Dem. Rep. |
649.1 |
| 10 |
Malawi |
672.9 |
Data Source: World Bank
Largest Economies in the World by 2050
According to PwC's "The World in 2050" report, China is projected to become the largest economy, contributing around 20% of global GDP. It is expected to surpass the United States as the largest economy by 2030 in terms of nominal GDP, while India is anticipated to rise to the third position by 2050. The European Union’s GDP share is expected to fall below 10%, and the Emerging Seven (E7) economies are predicted to grow nearly twice as fast as the G7. Key growth contributors include Vietnam, India, and Bangladesh, with Poland leading the EU. Despite challenges in some emerging markets, there is significant growth potential, provided that governments implement necessary structural reforms.
Projected Largest Economies in 2050
| Rank |
Country |
Projected GDP Contribution (%) |
| 1 |
China |
20% |
| 2 |
United States |
15% |
| 3 |
India |
8% |
| 4 |
Japan |
4% |
| 5 |
Germany |
3% |
| 6 |
United Kingdom |
2.5% |
| 7 |
France |
2.3% |
| 8 |
Brazil |
2% |
| 9 |
Indonesia |
1.8% |
| 10 |
Russia |
1.5% |
Data Source: World Bank
List Of Countries By Gdp Per Capita
| Country |
Most Recent Year |
GDP per Capita (USD) |
| Monaco |
2022 |
240,862.2 |
| Liechtenstein |
2022 |
187,267.1 |
| Luxembourg |
2023 |
128,259.4 |
| Bermuda |
2022 |
123,091.1 |
| Ireland |
2023 |
103,684.9 |
| Switzerland |
2023 |
99,994.9 |
| Cayman Islands |
2022 |
96,073.8 |
| Isle of Man |
2021 |
94,124.3 |
| Norway |
2023 |
87,961.8 |
| Qatar |
2022 |
87,480.4 |
| Singapore |
2023 |
84,734.3 |
| United States |
2023 |
81,695.2 |
| Iceland |
2023 |
78,811.1 |
| Denmark |
2023 |
67,967.4 |
| Faroe Islands |
2022 |
66,979.3 |
| Macao SAR, China |
2023 |
66,835.1 |
| Australia |
2023 |
64,711.8 |
| Channel Islands |
2022 |
64,501.3 |
| Netherlands |
2023 |
62,536.7 |
| Greenland |
2021 |
57,116.3 |
| Austria |
2023 |
56,506.0 |
| Sweden |
2023 |
56,305.3 |
| San Marino |
2021 |
54,982.5 |
| Finland |
2023 |
53,755.9 |
| Belgium |
2023 |
53,475.3 |
| Canada |
2023 |
53,371.7 |
| United Arab Emirates |
2023 |
52,976.8 |
| Germany |
2023 |
52,745.8 |
| Israel |
2023 |
52,261.7 |
| Hong Kong SAR, China |
2023 |
50,696.6 |
| United Kingdom |
2023 |
48,866.6 |
| New Zealand |
2023 |
48,527.8 |
| Andorra |
2023 |
46,544.7 |
| France |
2023 |
44,460.8 |
| Virgin Islands (U.S.) |
2021 |
41,976.0 |
| Guam |
2022 |
40,227.3 |
| Sint Maarten (Dutch part) |
2023 |
39,432.6 |
| Italy |
2023 |
38,373.2 |
| Malta |
2023 |
37,882.3 |
| Kuwait |
2023 |
37,533.2 |
| Puerto Rico |
2023 |
36,779.1 |
| New Caledonia |
2022 |
35,745.8 |
| Bahamas, The |
2023 |
34,749.6 |
| Cyprus |
2023 |
34,701.4 |
| Japan |
2023 |
33,834.4 |
| Brunei Darussalam |
2023 |
33,430.9 |
| Aruba |
2022 |
33,300.8 |
| Korea, Rep. |
2023 |
33,121.4 |
| Spain |
2023 |
32,677.0 |
| Slovenia |
2023 |
32,163.5 |
| Turks and Caicos Islands |
2023 |
30,438.4 |
| Czechia |
2023 |
30,427.4 |
| Estonia |
2023 |
29,823.7 |
| Bahrain |
2023 |
29,084.3 |
| Saudi Arabia |
2023 |
28,895.0 |
| Portugal |
2023 |
27,275.1 |
| Lithuania |
2023 |
27,102.8 |
| Slovak Republic |
2023 |
24,470.2 |
| Oman |
2023 |
23,295.3 |
| Latvia |
2023 |
23,184.3 |
| Greece |
2023 |
22,990.0 |
| Barbados |
2023 |
22,672.6 |
| Uruguay |
2023 |
22,564.5 |
| St. Kitts and Nevis |
2023 |
22,553.3 |
| Hungary |
2023 |
22,147.2 |
| Poland |
2023 |
22,112.9 |
| Antigua and Barbuda |
2023 |
21,560.2 |
| Croatia |
2023 |
21,459.8 |
| Guyana |
2023 |
20,626.2 |
| Curacao |
2022 |
20,492.8 |
| St. Martin (French part) |
2021 |
20,320.7 |
| American Samoa |
2022 |
19,673.4 |
| French Polynesia |
2022 |
18,984.9 |
| Panama |
2023 |
18,661.8 |
| Romania |
2023 |
18,419.4 |
| Trinidad and Tobago |
2023 |
18,333.0 |
| Seychelles |
2023 |
17,879.2 |
| Northern Mariana Islands |
2020 |
17,302.9 |
| Chile |
2023 |
17,093.2 |
| Costa Rica |
2023 |
16,595.4 |
| Venezuela, RB |
2014 |
15,975.7 |
| Bulgaria |
2023 |
15,797.6 |
| Palau |
2023 |
14,565.3 |
| St. Lucia |
2023 |
13,980.1 |
| Mexico |
2023 |
13,926.1 |
| Russian Federation |
2023 |
13,817.0 |
| Argentina |
2023 |
13,730.5 |
| Kazakhstan |
2023 |
13,136.6 |
| Turkiye |
2023 |
12,985.8 |
| Maldives |
2023 |
12,667.4 |
| China |
2023 |
12,614.1 |
| Nauru |
2023 |
12,060.1 |
| Montenegro |
2023 |
12,016.9 |
| Malaysia |
2023 |
11,648.7 |
| Mauritius |
2023 |
11,416.9 |
| Serbia |
2023 |
11,361.0 |
| Dominican Republic |
2023 |
10,716.0 |
| Grenada |
2023 |
10,463.6 |
| St. Vincent and the Grenadines |
2023 |
10,279.5 |
| Brazil |
2023 |
10,043.6 |
| Cuba |
2020 |
9,499.6 |
| Turkmenistan |
2023 |
9,190.7 |
| Dominica |
2023 |
8,953.9 |
| Armenia |
2023 |
8,715.8 |
| Bosnia and Herzegovina |
2023 |
8,426.1 |
| Gabon |
2023 |
8,420.1 |
| Albania |
2023 |
8,367.8 |
| North Macedonia |
2023 |
8,146.5 |
| Georgia |
2023 |
8,120.4 |
| Belize |
2023 |
7,987.6 |
| Belarus |
2023 |
7,829.1 |
| Peru |
2023 |
7,789.9 |
Frequently Asked Questions (FAQs)
GDP (Gross Domestic Product) is the total value of all goods and services produced in a country during a specific time period.
GDP measures a country's economic performance and reflects the economic health and size of its economy.
GDP is calculated by summing up consumption, government spending, investment, and net exports (exports minus imports).
If a country produces $1 trillion worth of goods and services in a year, its GDP for that year is $1 trillion.
As of 2024, the United States is ranked #1 in GDP.
GDP represents the economic output of a country, not individual income. However, it can indicate the potential income level for citizens.
The United States currently has the highest GDP in the world.
Real GDP is calculated by adjusting nominal GDP for inflation, providing a more accurate reflection of an economy's size over time.
The Ministry of Statistics and Programme Implementation (MoSPI) is responsible for calculating GDP in India.
GDP can be analyzed by looking at its growth rate, components (consumption, investment, government spending, net exports), and how it compares to other countries.
GDP provides a snapshot of economic health, allows for comparisons between countries, and helps in policymaking and economic planning.
GDP is a measure of economic output, while "economy" refers to the entire system of production, distribution, and consumption of goods and services in a country.
The three types of GDP are nominal GDP, real GDP, and GDP per capita.
The four components are consumption, investment, government spending, and net exports.
GDP can be explained to kids as the total amount of money made from everything a country produces, like toys, food, and clothes, in a year.
GDP can increase through higher consumer spending, increased business investment, government spending, and improved net exports.
GDP is important because it indicates the economic strength of a country, influences policymaking, and helps investors make informed decisions.
GNP (Gross National Product) measures the total economic output produced by a country's residents, regardless of location, including income earned abroad.
The three pillars are consumption, investment, and government spending.
The GDP of India in 2024 is projected to be approximately $3.73 trillion.
GDP measures all economic activity within a country's borders, while GNP measures economic activity by a country's residents, regardless of where it occurs.
GDP does not account for income inequality or environmental degradation, and it may overlook informal economic activity.
Real GDP is calculated by adjusting nominal GDP for inflation using a price index.
GDP is crucial in India for assessing economic growth, formulating policies, and attracting foreign investment.
A "good" GDP level varies by context, but consistent growth (usually around 2-3% annually for developed countries) is generally considered healthy.
The rule of 70 is a way to estimate how long it will take for an investment or economic measure to double by dividing 70 by the growth rate.
GDP can be measured using three approaches: the production approach, the income approach, and the expenditure approach.
The growth rate is calculated by subtracting the previous year's GDP from the current year's GDP, dividing by the previous year's GDP, and multiplying by 100.
India is classified as a developing country, with significant economic growth, but it still faces challenges such as poverty and inequality.
As of 2024, India is ranked 5th in terms of nominal GDP.
The richest country by GDP per capita is often Luxembourg.
The GDP formula can be expressed as: GDP = C + I + G + (X - M), where C = consumption, I = investment, G = government spending, X = exports, and M = imports.
No, GDP is not a tax. It is a measure of economic output.
GDP is used for economic analysis, policymaking, comparing economic performance between countries, and assessing living standards.
Simon Kuznets is often referred to as the father of GDP for his work in developing the concept in the 1930s.
As of recent data, Burundi is often cited as one of the poorest countries in the world by GDP per capita.
For example, if a country has $500 billion in consumption, $200 billion in investment, $100 billion in government spending, and $50 billion in net exports, its GDP would be $500 + $200 + $100 + $50 = $850 billion.
GDP can be explained as the total value of everything a country makes in a year, like toys, food, and clothes.
There is no single "father" of GDP in India, but notable economists, including P. Chidambaram, have played significant roles in shaping economic policy.
In India, GDP is calculated by the Ministry of Statistics and Programme Implementation using data from various sectors of the economy, including agriculture, industry, and services.
Luxembourg is projected to have the highest GDP per capita in 2024.
India is ranked 5th in terms of nominal GDP in 2024.
India's per capita income in 2024 is approximately $3,073.
The GDP per capita of the United States in 2024 is projected to be around $76,000.
The GDP per capita of India in 2025 is projected to be approximately $3,250.
China's GDP in 2024 is estimated to be around $19.4 trillion.
Pakistan's GDP in 2024 is projected to be approximately $400 billion.
As of 2024, India is generally considered richer than Bangladesh in terms of total GDP, but Bangladesh has a higher GDP per capita due to its smaller population.
India's GDP per capita in 2050 is projected to be approximately $10,000.
The top 5 economies in 2024 are:
1. United States
2. China
3. Japan
4. Germany
5. India
As of the latest data, the 10 richest states in India include Maharashtra, Tamil Nadu, Gujarat, Uttar Pradesh, and Karnataka, among others.
India is projected to be one of the fastest-growing economies in 2024.
India is classified as a developing country. While it has a large and growing economy, it still faces challenges such as poverty and inequality.
As of 2024, several countries in Asia, including India and Bangladesh, are among the fastest-growing economies.
By 2050, India is projected to become the third richest country in the world by GDP.
India's GDP in 2024 is projected to be approximately $3.73 trillion.
China is ranked 2nd in the world in terms of nominal GDP.
India's GDP per capita in 2026 is projected to be around $3,500.
Luxembourg currently has the highest GDP per capita.
The top 5 economies by nominal GDP are:
- United States
- China
- Japan
- Germany
- India
The top 10 richest countries by GDP per capita typically include:
- Luxembourg
- Macao SAR
- Ireland
- Singapore
- Qatar
- United Arab Emirates
- Switzerland
- San Marino
- United States
- Norway
As of 2024, India is ranked 5th in nominal GDP.
India is classified as a developing country. While it has a large and growing economy, it still faces significant challenges, including poverty and inequality.
In terms of Purchasing Power Parity (PPP), India is typically ranked 3rd, behind China and the United States.
Pakistan's GDP in 2024 is projected to be approximately $400 billion.
China is ranked 2nd in the world in terms of nominal GDP.
India's GDP is projected to reach approximately $5 trillion by 2030.
Historically, India was one of the wealthiest countries before British colonial rule, known for its rich resources and trade.
Yes, India is considered a developing country, and significant portions of its population live in poverty.
The UK has a higher GDP per capita than India, but India's total GDP is higher due to its larger population.
The technology and services sector, particularly IT and software services, is one of the fastest-growing sectors in India.
India is usually ranked 6th or 7th in the International Monetary Fund (IMF) based on nominal GDP.
India's GDP is high due to its large population, diverse economy, rapid growth in services and technology sectors, and significant agricultural output.
As of recent data, Burundi is often cited as one of the poorest countries in the world based on GDP per capita.
Maharashtra is generally considered the richest state in India in terms of GDP.
Dubai, as part of the UAE, has a high GDP per capita, estimated to be around $43,000, driven by trade, tourism, and finance.
