‘GDP’ is a familiar term of economics one often reads or listens. But, mostly we do pass by without paying real attention to the fact of what this term ‘GDP’ does actually mean and why it is the most important of all the terms of the economic jargon.  GDP is the sum or the total of the value of all the goods and services produced with in a country. This figure of the GDP is calculated, generally on a yearly basis. Then, the sum of the market value of the goods and services, that were produced in a country, over a period one year is the ’GDP’ of that country. This figure does include the exports of that particular country, but does exclude the imports of it. This is so because the produce for the exports originates with in the country and produce that is imported is having its origins abroad.  But GDP is expressed in terms of the percentages. Then how come these percentages are reached or calculated. The answer is simple. For the purpose of arriving at the GDP growth rate or percentage of growth; a particular financial year is divided into four quarters of three months each. This is the same method used to calculate some of the other economic indicators like the ‘Industrial growth rate’ too. Then the Government of a country calculates the sum total of the value of the Goods and services produced during that quarter. It compares the figure so arrived with the value of the Goods and services produced, in the quarter before or the previous quarter. Then, the increase/decrease in the sum value of the Goods and services produced in the present quarter, over that of the previous quarter, is calculated in terms of the percentages. Thus for example, the value of the goods and services produced in the country during the previous quarter amounted to about 1, 00,000 crore rupees (Indian case); and now in the present quarter the said value is to the tune of 1, 10,000 crore Rupees-The GDP growth rate would come to about 10%.Thus the annualized figure for all the four quarters of an year is that countries GDP, for that year.  The data is adjusted for the inflation, from quarter to quarter. So that the real values of the Goods and services of a particular period are compared with that of the other period, without the exaggerations or the under estimations in the values of the goods and services, as a result of the inflation. Thus the actual expression of the term ‘GDP’ should be the ‘Real GDP,’ as it is adjusted for the inflation overtime.  Anyhow, the GDP numbers are important as the one’s that indicate the growth or non-growth or deceleration in the wealth of a country. The growth in the GDP figure or percentage is more important, for a country, whose population is growing. But, the other factor that is as much important as the GDP growth rate is the factor of the ‘Distribution’ of the wealth thus created, amongst the populace. If this does not happen more or less equitably, economic disparities tend to rise and would become the cause of social discontent in that country.  These are the reasons why our rulers in India emphasize the need for 9% GDP growth rate and also ‘talk’ about the concept of ‘inclusive growth.’