Real GDP
Gross domestic product adjusted to remove the effect of price changes, so it measures output rather than value.
Formula
Real GDP = Nominal GDP / GDP Deflator x 100
Unit
₹ crore
In depth
Real GDP is what people mean when they discuss economic growth, because it answers whether more was actually produced rather than whether prices rose. It is computed against a base year, and India has revised its base several times, which makes long series across base changes awkward to compare. The GDP deflator used to adjust it is broader than the consumer price index because it covers all output rather than a consumer basket. When inflation is high, nominal and real growth diverge sharply, and quoting the nominal figure without saying so overstates progress.
Worked example
Nominal GDP grows 11% while the deflator rises 5%. Real growth is 1.11 / 1.05 - 1 = 5.71% — roughly half the headline figure came from prices rather than production.
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 “Real 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.