Video narration
You will often hear this called a national-income identity. In classroom shorthand, that is useful, but GDP and national income are not technically identical aggregates. Depreciation, and taxes less subsidies, matter when moving between them. Here, the expenditure total is GDP. So what does this look like at national scale? According to the National Statistical Office's Provisional Estimates series, India's GDP for financial year 2024-25, at constant prices, was ₹187.97 lakh crore, measured at 2011-12 prices. Constant prices means price changes have been removed relative to that base year, so this figure is used to describe real output rather than the value inflated by changing prices. It is an estimate release and can be revised; it is not India's current-price GDP. Return to your ₹500 cafe bill. It did not become three economies just because you saw spending, a meal produced, and income received. Nor does India's economy become three totals. Why do the totals match? Because the same final output is being counted from three sides: what India makes, spends, and earns.