Fiscal Deficit & GDP

The fiscal deficit is the difference between the government's total expenditure and its total receipts (excluding borrowing). The elements of the fiscal deficit are (a) the revenue deficit, which is the difference between the government’s current (or revenue) expenditure and total current receipts (that is, excluding borrowing) and (b) capital expenditure. The fiscal deficit can be financed by borrowing from the Reserve Bank of India (which is also called deficit financing or money creation) and market borrowing (from the money market, that is, mainly from banks).

Nominal GDP Growth vs. Real GDP Growth

GDP, or Gross Domestic Product is the value of all the goods and services produced in a country. The Nominal Gross Domestic Product measures the value of all the goods and services produced expressed in current prices. On the other hand, Real Gross Domestic Product measures the value of all the goods and services produced expressed in the prices of some base year. An example:
Suppose in the year 2000, the economy of a country produced $100 billion worth of goods and services based on year 2000 prices. Since we're using 2000 as a basis year, the nominal and real GDP are the same. In the year 2001, the economy produced $110B worth of goods and services based on year 2001 prices. Those same goods and services are instead valued at $105B if year 2000 prices are used. Then:
Year 2000 Nominal GDP = $100B, Real GDP = $100B
Year 2001 Nominal GDP = $110B, Real GDP = $105B
Nominal GDP Growth Rate = 10%
Real GDP Growth Rate = 5%

Similar is the case for Interest. General rates as we understand are nominal interest rates (quoted by Banks and all) but we adjust the inflation then remaining part is the real interest rates.

GDP is an indicator of size/growth for a country's economy. Its not purchasing power, nor cash reserves, nor net profit or any other term.
GDP = Consumption + Govt Exp + Investments + (Export - Imports)

Increase/Decrease in Imports do not have any effect on GDP. An increase in import would result in increase in consumption too, hence it nullifies the entire thing. GDP would remain constant. However surplus in production could mean increase in exports (depending on the global demand of the product and assuming that the consumption is same) and hence increase in GDP.

Now lets say a product has been manufactured at a cost of $1500. If this product is not sold and kept as inventory, as of now it is added in investment at $1500 but the moment it is sold the selling price is added in consumption and $1500 is taken out from investment. If selling price of this item is only$1 then net effect of this product will still be $1 and not the cost of raw material and labor put to creat this product. In case the product is not sold then at some time it may be scrapped and that year it will be taken out of investment.