Regression Analysis to study the Effects of Major Economical Variables on the Change in GDP of India

Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced in a specific time period.Gross Domestic Product is an essential concept of the economy of any country. It measures the growth of a country in terms of its production. The elements considered in the Gross Domestic Product calculation can be affected by several sectors of the Indian economy. The amount of production of food grains or commercial goods and their corresponding prices can directly influence the GDP. Not only that the components present in the Money and banking sector and also that of the financial markets can have an impact upon the Indian Gross Domestic Product. The sectors of public finance and the factor of trading and balance of payment should also be considered by discussing the factors that influence the gross domestic product. In this particular study we tried to select a sufficient number of variables from all possible sectors so that the reason behind the change in Gross Domestic Product can be accounted for. Among all the selected variables some factors can have severe impact while some can have indirect impact upon the GDP. In this study our objective is to detect those variables that are important in the concept of GDP of India and to use an appropriate regression model to express the GDP in terms of those variables.