Suppose in 2025, India reported the following for the current year: Consumption expenditure = Rs. 110 lakh crore, Investment expenditure = Rs. 45 lakh crore, Government expenditure = Rs. 25 lakh crore, Net exports = Rs. 8 lakh crore. What is the Gross Domestic Product (GDP) at market price?
Answer
188 lakh crore
The correct answer is 188 lakh crore — Step 5: Conclude that GDP is 188 lakh crore.
Step-by-step solution
- Step 1: Identify the expenditure components: consumption (C) = 110 lakh crore, investment (I) = 45 lakh crore, government expenditure (G) = 25 lakh crore, net exports (NX) = 8 lakh crore.
- Step 2: Apply the expenditure approach: GDP = C + I + G + NX.
- Step 3: Compute the sum: 110 + 45 + 25 + 8 = 188.
- Step 4: State the GDP at market price.
- Step 5: Conclude that GDP is 188 lakh crore.
Common mistake: Forgetting to add net exports or mistakenly subtracting it
Concept tested: GDP by expenditure approach
Published · How this solution was prepared and checked
← All National Income and Related Aggregates questions