One of the most often used measures of economic performance is the gross domestic product (GDP). The gross domestic product (GDP) is a measure of a country total output over a specific time period and is seasonally adjusted to remove quarterly changes due to weather or vacations. Inflation is also taken into account when calculating the most popular GDP metric in order to track output changes as opposed to changes in the cost of goods and services. To understand the GDPs impact on Indian economy. The impact of GDP on the Indian economy has varied over time, depending on the level of GDP. The GDP number is the building block of the overall economy. This is so because modern macroeconomics is more or less connected with government policies aimed at improving the efficiency of the economy. Finally, the refocused role of government demands both professional skills and personal integrity among all leading participants. Tomorrows problems cannot be solved with yesterday’s strategies, and cannot even be understood with day before yesterday’s knowledge effect on GDP growth rate for period 1970-2011 i.e. 1% point increase in it increased GDP growth rate on an average only by 0.0059858. The determination of GDP growth rate by several economic and non-economic factors varied in terms of the extent of their impact on GDP growth rate.