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Only goods usually bought by, consumers are included, , Imported goods are also included, Weights are constant, , 8.13 GDP and Welfare, , GDP and its growth rate alone cannot be, considered an indicator of development. There, can be situations where GDP growth does not, lead to promotion of welfare. They are,, , 8.13.1 Inequality in the distribution of income, Even if the majority does not experience, any increase in income, the GDP will increase, if the income of a minority increases. Here, welfare diminishes even when GDP increases., 8.13.2 GDP and non-monetary exchanges, Many of the non-monetary exchanges are, not included in the GDP. For example, services, rendered by housewives and barter transactions, are not included in GDP. To this extent, GDP is, , inadequate. In a country like India, with huge ., , population and non-monetised sectors, GDP is, underestimated., , A MMMAPALISOM OF UP] and WPl, , All goods and services in the, economy are included., Imported goods are not included, , Weights may differ, , 8.13.3 GDP and harmful goods, , Production of cigarettes and alcohol, both, injurious to the health of the people, is included, in GDP. So, if production of tobacco and alcohol, is increased, GDP will go up. But we cannot say, that increase in GDP indicates an improvement, in welfare of the people., , 8.13.4 GDP and externalities, , Externalities are unintended consequences, of an action. Externalities can be harmful also., If a chemical factory is set up in an area and if, it pollutes the nearby river by discharging its, effluents, there will be many harmful consequences, While calculating GDP, these welfare, enhancing and welfare deduction externalities, are not considered.