Gross Domestic Product(GDP)

It is the sum of the value of all final goods and services produced in a country in a financial year or accounting year.
Note: The financial year in India begins on 1st April and ends with 31st March, commonly referred as FY.

Formula to compute GDP:

Y = C + I + G + X – M

Y = GDP (or) Total Output

C = Consumption Expenditure of the Households
I = Investment Expenditure
G = Government Expenditure
X = Exports
M = Imports

(or)

Y= PFCE + GFCE + GCF + NX
PFCE = Private Final Consumption Expenditure
GFCE = Government Final Consumption Expenditure
GCF = Gross Fixed Capital Formation
NX = Net Exports(X-M)

• If Exports are more than imports, that is NX is positive, then the nation is said to have trade surplus.
• If Exports are less than imports, that is NX is negative, then the nation is said to have trade deficit.
• If Exports are equal to imports, that is NX is zero, then the nation is said to have balanced trade.

Refer: Nominal GDP Vs Real GDP