In the context of India, NNP (Net National Product) refers to the monetary value of all the goods and services produced by a country during a specific period (usually a year) after accounting for depreciation. It is a measure of a nation’s economic performance.
Formula for NNP:
NNP=GNP−DepreciationNNP = GNP – DepreciationNNP=GNP−Depreciation
Where:
- GNP (Gross National Product): Total value of goods and services produced by the residents of a country, including income earned abroad, minus income earned by foreigners within the country.
- Depreciation: Represents the wear and tear on capital goods.
In India:
NNP is calculated at both factor cost (excluding indirect taxes) and market price (including indirect taxes).
- NNP at Factor Cost: Commonly referred to as National Income and provides a better indicator of the economic well-being of citizens.
- NNP at Market Price: Includes taxes and subsidies, giving a broader view of the economic output.
India’s NNP data is provided by the Ministry of Statistics and Programme Implementation (MoSPI) and is an important indicator used in economic planning and policy-making.
