IKHLAQ SIR.

NSO calculates GDP by Value Added Method and Expenditure Method both. Under Value Added Method, it calculates the value addition done by various economic activities viz:  Agriculture, Forestry and Fishing.  Mining and Quarrying.  Manufacturing.  Electricity, Gas, water supply and other utility services.  Construction.  Trade, Hotels and transport, and communication and services related to  broadcasting.  Financial, Insurance, real estate and professional services.  Public administration and defence and other services.      👉 Under Expenditure Method, it adds up the various components of expenditure viz:👇  Private Final Consumption Expenditure (it is basically household expenditure)  Government Final Consumption Expenditure  Gross Fixed Capital Formation (Investment expenditure of private and government)  Net of Exports and Imports (In certain cases where we are not able to measure estimates at constant prices, then the CPI  and WPI index is used as...

  GDP =The total final value of goods and services produced within the domestic territory of a country in a specified time period (generally a financial year) is called Gross Domestic Product.            CALCULATION OF GDP. GDP can be calculated by three methods: 1. The Product or Value Added Method In this method we calculate the aggregate annual value of goods and services produced  and to arrive at this we add up the value of all goods and services produced by all the  firms in an economy. Let us take an example: Suppose there are only two kinds of producers in the economy. One is the farmer who  produces wheat and the other is the baker who produces bread. Assume that the farmer  who produces wheat do not require any input other than the physical labour. Suppose  the farmer produces Rs. 100 worth of wheat, out of which he consumes Rs. 50 of wheat  and sells Rs. 50 of wheat to the baker. And suppose the baker do not req...