📊 GDP, GNP, NDP, NNP — Differentiation
1. GDP (Gross Domestic Product)
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Goods + Services produced within the country’s territory (by citizens or foreigners).
👉 “D = Domestic = within country’s boundary”
2. GNP (Gross National Product)
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Goods + Services produced by a country’s citizens (nationals), no matter where they are in the world.
👉 “N = National = people of the nation, anywhere”
🔹 Formula:
GNP=GDP+(Income earned abroad by Indians−Income earned by foreigners in India)\text{GNP} = \text{GDP} + (\text{Income earned abroad by Indians} - \text{Income earned by foreigners in India})GNP=GDP+(Income earned abroad by Indians−Income earned by foreigners in India)
3. NDP (Net Domestic Product)
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GDP minus depreciation (wear & tear of machines, capital goods).
👉 “Net = after cutting depreciation”
4. NNP (Net National Product)
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GNP minus depreciation.
👉 “National + Net = By our people, after depreciation.”
âš¡ Memory Hack:
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Domestic vs National → Place vs People
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Gross vs Net → Before vs After depreciation
✅ Exam Tip: If the question asks “income within the country” → think GDP.
If it asks “income of Indians worldwide” → think GNP.