Influence of leading indicators on national economy

For more than hundred years GDP has been adapted as a measure for economic progress. GDP is an estimate of market throughput, adding together the value of all final goods and services that are produced and traded for money within given period of time. That is typically measure by adding together a nation's personal consumption expenditures (payments by households for goods and services), Government Expenditure (public spending on provision of goods and services, infrastructure, debts, payments, etc. Net Exports (Country Exports -Government Imports) and Net Capital formation (Increased in stock of monetised capital good). It is a reflection of how fast has economy has grown. Gross Domestic Product is only measure for marketed economic activity and human compliance of community capital are ignored.

This paper attempts to identify certain factors that have long been influence Gross Domestic Product. This paper tries to list down the following factors Gross Domestic Product, Foreign Direct Investment, Gold Rate, Exchange Rate USD, Imports in billions $, Exports in billion $, Inflation for analysis on GDP. The technique used in the research is Multiple Linear Regression. Through this technique the research analysis attempts to evaluate the association of different parameters viz-a-viz GDP taking into account the interdependence of these variables.

This research is an attempt to formulate the parameter that may be influential during formulation of strategies and policies for the economy.