Budget in a Minute: What is GDP or Gross Domestic Product? Anil Singhvi explains in simple terms

One of the most important utterances in a Union Budget is the number related to the GDP (Gross Domestic Product) growth of the country. This is an indicator of the pace of economic growth of any country. Zee Business Managing Editor Anil Singhvi explains what GDP is in a simple and short way.  

In easy language, GDP or Gross Domestic Product is related to how much a country has produced or manufactured along with the services that have been given in a year, the Market Guru said. 

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There are primarily three sectors – agriculture, manufacturing and services. The growth in all these sectors are added up to arrive at the GDP numbers, Singhvi said.  Higher the GDP growth, the better it is for the country. 

The Managing Editor said that India is currently the fastest growing economy in the world. 

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बजट Easy है...

क्या होती है #GDP? 1 मिनट में अनिल सिंघवी से समझिए GDP का अर्थ#BudgetOnZee #Budget2021 #GDPGrowth @AnilSinghvi_ pic.twitter.com/7y0AcqeRqs

— Zee Business (@ZeeBusiness) January 27, 2021

Considering this fact it will be interesting to see what the Finance Minister says about the GDP numbers in this year’s budget announcements. This is a very important number. 

Though the government wants to take the GDP growth of the country between 7-7.5 per cent. The markets will react to this number depending upon the data given by the FM. Higher it is, the more markets will respond in upwards direction. 

The Union Budget is one of the most important occasions for the government and even the common man and industry waits for this annual event. Market Guru has been explaining about the important terms that are mentioned in any Budget Speech. Some of the Budget related terms explained by Singhvi were Union Budget meaning, fiscal deficit, direct and indirect tax, 80D of ITR and Economic Survey etc.   

Finance Minister Nirmala Sitharaman will be presenting the Budget 2021 on 1 February.