Differentiate between GDP & NNP

Dear student
NNP means net national product GDP means gross domestic product These two are very important measures for national income accounting of an economy to evaluate it's performance
Domestic + net factor income from abroad = national
Gross - depreciation = net
Domestic output means the value of all goods and services produced within the domestic territory of the nation. With contrast to this, national output accounts for all the incomes received from abroad by indians ( by way of compensation for work abroad, earning rent on a property abroad, by earning interests on financial assets like shares and bonds in foreign countries etc) by adding them to the output and also all net factor income paid abroad ( by the same way, foreigners earning their net factor income from abroad for their home country from india) by subtracting it from the output.

GDP means the total market value of all goods and services produced within a country.

NNP (Net National Product) is the total value of goods produced and services provided in a country during one year, after depreciation of capital goods has been allowed for.
Now depreciation is accounted for as a gradual loss in the fixed assets and is the amount needed to replace the depreciated assets(for example - deteriorating machinery) and is a way to recover costs for capital expenditures.

Thus NNP = GDP- DEPRECIATION+ net factor income from abroad Regards

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