Nominal GDP
Gross domestic product measured at current prices, including the effect of inflation.
Formula
Nominal GDP = Real GDP x GDP Deflator / 100
Unit
₹ crore
In depth
Nominal GDP is the figure that matters for anything measured in current rupees — tax collections, the debt-to-GDP ratio, and corporate revenue, which is why company growth should be compared against nominal rather than real GDP growth. Government budgets are built on nominal projections, so an inflation shortfall can wreck a fiscal deficit target even when real growth is on plan. Comparing nominal GDP across years without adjusting for prices exaggerates growth, sometimes dramatically. India's nominal growth has typically run four to six percentage points above real growth.
Worked example
Real growth of 6.5% with a deflator rising 4.5% gives nominal growth of 1.065 x 1.045 - 1 = 11.3%. A company growing revenue 8% is losing share of the economy despite growing faster than real GDP.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Nominal GDP” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.