Calculate the GDP at Market Price from the following

Solution

• GDP at Market Price (GDPmp) is calculated using the  Expenditure Method :
  GDPmp = Private Final Consumption Expenditure (C) + Government Final Consumption Expenditure (G) + Gross Fixed Capital Formation (I) + Change in Stocks ( Δ S) + Net Exports (X - M)
  Plugging in the values:
  GDPmp = 8,000 (C) + 2,000 (G) + 3,000 (I) + 500 ( Δ S) + (-200) (NX)
  GDPmp = 8,000 + 2,000 + 3,000 + 500 - 200
  GDPmp =  ₹13,300 Crores
  Note: Depreciation and Net Indirect Taxes are not used directly in this calculation. Depreciation is used to get from Gross to Net Domestic Product. Net Indirect Taxes are used to get from Market Price to Factor Cost.