India GDP and Standard of Living

India GDP and Standard of Living are closely related as GDP features among the significant factors in the assessment of the standard of living. Standard of living comprises quality as well as amount of commodities offered for consumption by the citizens and the distribution system.

India GDP and Standard of Living Factors:



Factors required for the assessment of the standard of living includes:
  • Rate of poverty
  • Per capita income and income inequality
  • Standard of education
  • Medical facilities
  • Life expectancy
  • Social rights
  • Safety
  • Environmental condition
  • Cultural resources
GDP is dependent on a wide variety of factors like:
  • Private Consumption within the economy
  • Amount of spending by the central government on final goods and services
  • Gross imports
  • Capital Investments like buying of machinery, construction of dams, roads, mines etc.
  • Gross exports

India GDP and Standard of Living Comparative Analysis



The substantial growth in various sectors like IT, Real Estate, ITES has led to the improvement of the standard of living at a constant rate. However, the statistical figures still delineate that approximately 27.5 % of the Indian population lives below the poverty line. The most significant indicator required to measure the standard of living is in realty per capita purchasing power parity-adjusted gross domestic product. A comparative analysis of the standard of living of India with other countries will aid in the assessment of the position of India in the standard of living chart. The per capita- adjusted gross domestic product of China in the year 2003 was $4,900 and that of the majority of western European countries is $26,000 and that of the most developed country like US is $33,000. The per capita- adjusted gross domestic product of India has been calculated to be US $ 31,00

Measurement of India GDP and Standard of Living



GDP makes an assessment of India's national output by dividing the current GDP of India with the total population of the country. In the examination of overall production, GDP takes into account both the public as well as the private consumption accompanied with the manufacture of capital goods that consequently aid in the further production of commodities.

Alternative to India GDP and Standard of Living:



A recent innovation in the field of India GDP and Standard of Living can be used in place of per capita GDP in order to examine India's present material well -being. Subtracting military expenditures from the total consumption in order to identify the standard of living will do this. This new measure has substantially reduced the difference in material well being of the Indian citizens when compared with that of the foreign countries.