NNP AND NDP PROF.

KARAN BHATT
NET NATIONAL PRODUCT
Net national product (NNP) is the monetary value of finished goods and services
produced by a country's citizens, overseas and domestically, in a given period.
It is the equivalent of gross national product (GNP), the total value of a
nation's annual output, minus the amount of GNP required to purchase new goods to
maintain existing stock, otherwise known as depreciation.
NET NATIONAL PRODUCT
Net national product or NNP is the market value of all the finished goods and
services that are produced by citizens of a nation, living domestically and
internationally during a year.
Net national product is also referred to as the value that is obtained by subtracting
depreciation from the gross national product (GNP).
Net national product considers all the goods, products and services that are
manufactured by the country’s citizens, irrespective of their location, or in other
words, net national product considers products that are produced domestically and
also from overseas.
NNP is one of the important metrics for determining the actual growth of a nation. It
measures how much the country is able to consume in a given period of time.
CALCULATION OF NNP
KEY POINTS
When the net national product (NNP) of a country declines or falls, then the
businesses consider moving to industries that are deemed to be recession-proof.
In case there is a rise in net national product, then the businesses shift their focus on
industries that are consumer led, such as travel and sales in order to generate more
sales
The depreciation that is calculated refers to the wear and tear of the capital assets and
the depreciation of human capital is observed when there is workforce turnover.
The extent of workforce turnover helps in understanding the resources that will be
required to be spent by the companies in order to find new employees.
NNP OF INDIA
NET DOMESTIC PRODUCT PROF. KARAN BHATT
NET DOMESTIC PRODUCT
Net domestic product (NDP) is a yearly measure of a country's economic output
The net worth of all goods and services generated inside a country's geographic
borders is referred to as the net domestic product.
It is regarded as a significant measure of a country's economic growth. Which is
determined by deducting depreciation from gross domestic product (GDP).
•NDP, along with GDP, gross national income (GNI), disposable income, and
personal income, is one of the key gauges of economic growth that is reported on a
quarterly basis.
•An increase in NDP would indicate growing economic health, while a decrease
would indicate economic stagnation.
NET DOMESTIC PRODUCT
•The net worth of all goods and services generated inside a country's geographic borders is
referred to as the net domestic product. It is regarded as a significant measure of a country's
economic growth.
•The value of depreciation of national capital assets such as machinery, houses, and cars is
subtracted from the gross domestic product (GDP) to arrive at the net domestic product
(NDP) .
•Other considerations such as asset obsolescence and complete destruction are also taken into
account by the NDP. Capital consumption allowance is another term for depreciation.
•If a country's capital stocks are not replaced as a result of depreciation, the country's GDP
falls.
•It is considered favourable for an economy if the gap between GDP and NDP narrows or
closes. It also denotes a state of economic equilibrium. A bigger disparity between GDP and
NDP, on the other hand, indicates an increase in the value of obsolescence.
CALCULATION OF NDP
•NDP can be calculated using the following formula.
• NDP = GDP – Depreciation

•Depreciation is the term used to describe the depreciation of capital assets such as
equipment, vehicles, and houses.
•The NDP is thought to be preferable to the GDP as a measure of a country's well-
being because it accounts for depreciation of capital assets.
•This notion is about NDP, or net domestic product, which is a key metric for
measuring a country's economic health.
•A rising NDP indicates a growing economy, whereas a falling NDP indicates
stagnation
NDP IN INDIA