Economic development projects a broader picture of an economy which takes into account an increase in production level or output of an economy along with an improvement in the living standard of its citizens.

(i) Economic growth is the quantitative measure which considers the rise in the output produced in an economy or nation in a particular period in its monetary value.
(ii) GDP and GNP which helps in measuring the actual size of an economy.

There are three Methods of Calculating GDP. They are,
(i) Expenditure approach
(ii) The Income approach
(iii) Value added approach

a) Primary sector (Agricultural sector) : 
(i) Cattle farm  (ii) Fishing  (iii) Mining
b) Secondary sector : (Industrial sector)
(i) Cotton textiles   (ii) Small scale industries   (iii) Cement 
c) Tertiary sector : (Service sector) 
(i) Government  (ii) Transport  (iii) Banking

a) In the value added approach the value added by each intermediate goods is summed to estimate the value of the final goods.
b) The sum of the value added by all the intermediate goods used in production gives us the total value of the final goods produced in the economy.
Example:
To measure the market value of a cup of tea is, to add the value of each intermediate goods used to produce it such as tea powder, milk and sugar.

Per Capita Income (PCI) or output per person is an indicator to show the living standard of people in a country. It is obtained by dividing the national income by the population of a country
\(\text {Per capita Income } = \frac { \text { National Income }}{\text { Population }} \)

i) 'National Income is a measure of the total value of goods and services produced by an economy over a period of time, normally a year'.
ii) National Income is called as Gross National Product (GNP) or National Dividend.

Contribution of different sectors GD P in India:
i) Gross Value Added (GVA) at current prices for services sector is estimated at 92.6 lakh crore in 2018 - 19.
ii) Services sector accounts for 54.40% of total India's (GVA) of 169.61 lakh crore Indian Rupees.
iii) With GVA of Rs. 50.43 lakh crore, Industry sector contributes 29.73%.
iv) Agriculture and allied sector shares 15.87%.
v) At 2011-12 prices, composition of Agriculture &allied, Industry and services sectors are 14.39%, 31.46% and 54.15% respectively.
vi) The share of primary like agriculture, forestry, fishing and mining and quarrying.
vii) Secondary (Industry) like, manufacturing, electricity, gas, water supply, utility services and construction, tertiary (services) like, trade, hotels, transport, communication etc. have been estimated as 18.57%, 27.03%, 54.40%.
viii) According to sector wise India GDP composition in 2017 are Agriculture (15.4%), Industry (23%) and services (61.5%).
ix) India is 2nd largest producer of agriculture product.
x) India accounts for 7.39% of total global agricultural output.
xi) In Industry sector, India world rank is 6.
xii) In service sector, India world rank is 8.
xiii) Contribution of Agriculture sector in Indian economy is much higher than world's average 6.4%.
xiv) Contribution of Industry and services sector is lower than world's average 30% for Industry sector and 63% for services sector.
xv) At previous methodology, composition of Agriculture & allied, Industry and services sector was 51.81%, 14.16% and 33.25% respectively at current prices in 1950-51.
(xvi) Share of Agriculture & allied sector has declined at 18.20% in 2013 - 14.
xvii) Share of services sector has improved to 57.03%.
xviii) Share of Industry sector has also increased to 24.77%.

Synopsis:
a) Expenditure Approach
b) The income Approach period.
c) Value added Approach
a. Expenditure Approach:
In this method GDP is measured by adding the expenditure on all the final goods and services produced in the country during a specific period.
Y= C + I + G + (X - M)
b. The income Approach:
In this method GDP is calculated from the perspective of the earnings of the men and women who are involved in producing goods and services.
Y = wages + rent + interest + profit
c. Value added Approach:-
In this method GDP is calculated by including the values of intermediate goods to estimate the value of final goods.

a) National Income:-
National Income is a measure of the total value of goods and services produced by an economy over a period of time, normally a year. It is also called as National Dividend.
b) Gross National Product (GNP) :
Gross National Product is the total value of goods and services produced and income received in a year by domestic residents of a country. It includes profits earned from capital invested abroad.
GNP =C+I+G+(X-M) + NFIA
C = Consumption
G = Government Expenditure
NFIA = Net Factor Income from Abroad
I = Investment
X-M = Export-Import
c) Gross Domestic Product (GDP) :
Gross Domestic Product (GDP) is the total value of output of goods and services produced by the factors of production within the geographical boundaries of the country.
d) Net National Product (NNP) :
Net National Product (NNP) is arrived by making some adjustment with regard to depreciation we arrive the Net National Product (NNP) by deducting the value of depreciation from Gross National Product (NNP = GNP -Depreciation)
e) Net Domestic Product (NDP) :
Net Domestic Product (NDP) is a part of Gross Domestic Product, Net Domestic Product is obtained from the Gross Domestic Product by deducting the quantum of tear and wear expenses (depreciation)
NDP = GDP - Depreciation
f) Per Capita Income (PCI) :
Per capita Income or output per person is an indicator to show the living standard of people in a country. It is obtained by dividing the National Income by the population of a country.
Per capita Income = National Income / Population
g) Personal Income (PI) :
Personal income is the total money income received by individuals and households of a country from all possible sources before direct taxes.
h) Disposable Income (DI) :
Disposable income means actual income which can be spent on consumption by individuals and families, thus, it can be expressed as DPI = PI -Direct Taxes
(From consumption approach DI = Consumption Expenditures + Savings )

S. No	Gross Domestic Product (GDP)	Gross National  Product (GNP)
i)	Gross Domestic Product (GDP) is the total value of  output of goods and services produced by the factors of production within the geographical boundaries of the country.	Gross National Product (GNP) is the total value of (goods and services) produced and income received in a year by domestic residents of a country.
ii)	Net factor income from abroad is not included.	It includes profit earned from capital invested abroad.