International Journal of Research & Review (www.gkpublication.in) 7 Vol.4; Issue: 1; January 2017 International Journal of Research and Review www.ijrrjournal.com E-ISSN: 2349-9788; P-ISSN: 2454-2237 Review Article Factors Affecting GDP - Opinions, Studies and Interpretation Sunil J. Kulkarni Datta Meghe College of Engineering, Airoli, Navi Mumbai, Maharashtra, India ABSTRACT The gross domestic product (GDP) is one of the primary indicators used to measure the condition of a country's economy. It can be estimated by three methods namely output method, input method and expenditure method. The economic growth has been driven by the expansion of services that have been growing consistently faster than other sectors. FDI in I.T. sector is unavoidable phenomenon in modern economy. The government needs to have stricter control on the FDI and monitor it regularly. FDI provided a sound base for economic growth and development. A globalized economy demands efficiency in production. Key words: Growth, FDI, Import, Export, macroeconomics. INTRODUCTION India is one of the fastest growing economy. The economy of India is the sixth-largest economy in the world measured by nominal GDP. It is third largest by purchasing power parity (PPP). The gross domestic product (GDP) is one of the primary indicators used to gauge the health of a country's economy. It can be estimated by three methods namely output method, input method and expenditure method. The economic growth has been driven by the expansion of services that have been growing consistently faster than other sectors. The factors affecting growth are divided into two categories, demand side and supply side. Human resources, capital, technological development and political scenario are few factors affecting the growth. India rank 11 in service sector and 12 in industry sector. In India, contribution of agricultural sector much higher than world average. Current review summarizes studies on Indian economic growth with GDP as a measuring parameter. FACTORS AFFECTING GDP - REVIEW ON STUDIES WITH INTERPRETATION Jain studied impact of I.T. industry on Indian economy. [1] She discussed latest contemporary issues regarding Indian IT Industry’s contribution in economy of nation. According to her, I.T. sector in India accounts for 50 percent of GDP. In 2009, India’s software was only 2% of world software export. Niranjana and Shivkanya carried out studies on FDI in organized retail sector and its impact on Indian economy. [2] According to them FDI in I.T. sector is unavoidable phenomenon in modern economy. The government needs to have stricter control on the FDI and monitor it regularly. They emphasized that the scope for FDI in India is unlimited. Rath et.al. studied effect of tourism on Indian economy. [3] According to them, traveling and tourism has is an integral part of Indian