Q.From the following data, calculate GDP at Market Price by the Expenditure Method:
Private Final Consumption Expenditure = ₹3,20,000 crore; Government Final Consumption Expenditure = ₹85,000 crore; Gross Domestic Capital Formation = ₹1,10,000 crore; Exports = ₹60,000 crore; Imports = ₹75,000 crore.

The expenditure method simply adds up spending on final goods and services by every sector of the economy, netting exports against imports for the foreign-trade component. …

Identify each component:

• $C$ (Private Final Consumption Expenditure) = ₹3,20,000 crore
• $G$ (Government Final Consumption Expenditure) = ₹85,000 crore
• $I$ (Gross Domestic Capital Formation, i.e. gross investment) = ₹1,10,000 crore
• $X - M$ (Net Exports) $= 60,000 - 75,000 = -₹15,000$ crore

Apply the formula:

$GDP_{MP} = 5,15,000 - 15,000 = ₹5,00,000\ \text{crore}$ …

Adding imports instead of subtracting them (net exports is X minus M, not X plus M); forgetting that a trade deficit (M > X) makes the net-e …