| Gross Domestic Product (GDP) |
Total value of all final goods & services produced inside India in a year. |
Indicator of the size & health of the economy. |
| Gross National Product (GNP) |
Value of all goods & services produced by Indian residents (including abroad). |
Shows the income earned by residents, useful for comparing to GDP. |
| Consumer Price Index (CPI) |
A weighted average of prices of a basket of goods that households buy. |
Basis for calculating inflation & cost‑of‑living adjustments. |
| Producer Price Index (PPI) |
Average change in selling prices received by producers. |
Early indicator of inflationary pressures in the supply side. |
| Inflation |
General rise in price levels over time. |
Affects purchasing power and monetary policy decisions. |
| Deflation |
General fall in price levels. |
Signals economic slowdown, may lead to debt deflation. |
| Monetary Policy |
RBI’s actions (interest rates, reserve ratios, etc.) to control liquidity & inflation. |
Keeps the economy stable, prevents overheating. |
| Fiscal Policy |
Government’s decisions on taxation & spending. |
Determines public debt, economic stimulus, or restraint. |
| Inflation Rate |
Year‑on‑year % change in CPI. |
Gauge of price stability. |
| Exchange Rate (FX) |
Value of one currency against another (e.g., ₹/USD). |
Influences trade, inflation, and capital flows. |
| Foreign Direct Investment (FDI) |
Investment by a foreign entity in an Indian business. |
Indicator of foreign confidence, job creation. |
| Balance of Payments (BoP) |
Records all international transactions – current & capital accounts. |
Shows economic integration & external stability. |
| Current Account |
Trade balance + services + income + unilateral transfers. |
Core component of BoP. |
| Capital Account |
Capital flows (FDI, portfolio investment). |
Shows capital mobility. |
| Fiscal Deficit |
(Government spending – revenue) / GDP. |
Indicator of the government’s borrowing needs. |
| Debt‑to‑GDP Ratio |
Total national debt / GDP. |
Measures debt sustainability. |
| Human Development Index (HDI) |
Composite index of life expectancy, education, and income. |
Measures overall well‑being of the population. |
| Purchasing Power Parity (PPP) |
Exchange rate that equalises the price of a basket of goods in different countries. |
Useful for cross‑country income comparison. |
| Human Capital Index (HCI) |
Measures the probability that a child will reach adulthood with a productive level of human capital. |
Indicator of future productive potential. |