Question

"Gross Domestic Product (GDP) is not the best indicator of the economic welfare of a country." Defend or refute the given statement with valid reasons.​

Answer 1

Gross Domestic Product (GDP) is not the best indicator of the economic welfare of a country -

1. GDP is the Total Production in a country. It is the sum of all values of Primary sector, Secondary sector and Tertiary sector.
2. Countries with Higher Total Income or GDP are considered to be Developed like USA, UK and Japan.
3. However, this is not a useful measure as countries have different populations and comparing the total income of GDP will not state average amount earned by a person.

Know More:

• The calculation of GDP is undertaken by Central Statistical Office working under Ministry of Statistics and Programme Implementation, Government of India.