IDEA OF NATIONAL INCOME [GDP,NDP,GNP,NNP]

IDEA OF NATIONAL INCOME
GDP
GDP Gross Domestic Product (GDP) is the value of the all final goods and services produced within the boundary of a nation during one year. For India, this calendar year IS from 1st April to 31st March .

NDP
Net Domestic Product (NDP) is the GDP calculated after adjusting the weight of the value of 'depreciation'. This is, basically, net form of the GDP, i.e. GDP minus the total value of the 'wear and tear' (depreciation) that happened in the assets while the goods and services were being produced. Every asset (except human beings) go for depreciation in the process of their uses, which means they 'wear and tear'.

GNP
GNP Gross National Product (GNP) is the GDP of a country added with its 'income from abroad'. Here, the trans-boundary economic activities of an economy is also taken Into account. The items which are counted in the segment 'Income from Abroad' are:
 (i) Trade Balance
 (ii) Interest of External Loans
 (iii) Private Remittances

NNP
Net National Product (NNP) of an economy is the GNP after deducting the loss due to 'depreciation'. The formula to derive it may be written like:
NNP = GNP - Depreciation
NNP = GDP + Income from Abroad - Depreciation