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There are two parameters by which the performance and development of a nation are measured. The two terms GDP and GDP per capita roughly give the progress of a nation in numbers. These numbers are widely and extensively used to measure economies and its growth.
Let us quickly look at what the two terms mean and why it is used:
■ GDP is defined as the total value of goods or services produced within a country’s borders in a specific time period. GDP is nothing but the total output that an economy of a country. It can thus be an accurate measure of the nation’s income, expenditure or output.
■ GDP per capita in short is GDP divided by the population of that country. It can roughly convey the standard of living in a country. However, it does not take into account the difference in purchasing power of a country. For example, If 1 dollar could buy you 1 Pepsi Tin in the United States, it could buy you 3 Pepsi Tin’s in Bangladesh. Hence, the purchasing power of Bangladesh is thrice than that of the United states.
The top ten countries based on GDP and GDP per capita
GDP per capita ranking-This ranking is based on the IMF World Outlook (October 2015), and the top ten countries according to nominal GDP terms are:
GDP ranking-This ranking is based on the Projection by IMF(April 2015), and the top ten countries are as follows:
So, India ranks 7th when it comes to GDP ranking.