As the Gross Domestic Product Increases, availability of goods and services also increases. But it is not always true to say that per capita availability of goods in the economy increases with the Increase in Gross Domestic Product. It is only possible when rest of the factors which can affect the welfare are assumed to be remains constant. Means there are some Limitations of Real GDP as an Index of per capita availability of goods, such as : 

(i) Growth of Population : If the growth rate of population is more than the growth rate of GNP, then the per capita real GDP and economic welfare decreases even with the increase in output. 

(ii) Change of Composition of National Income : If the production of War Material or Capital Goods increases in comparison to Consumer Goods, then it will Decreases the capita availability of goods. 

(iii) Distribution of National Income: If the distribution of National income becomes unequal with the increase in National income then it will decrease economic welfare. 

(iv) Government Expenditure on Law and Order and Defence : Expenditure on law and order and defence is termed as non–development expenditure. These expenditure does not promote economic welfare of the masses, but it will increase the National income etc.