Net National Product (NNP):
1. NNP is the net value of all final goods and services produced in an economy for one accounting year. It includes income from abroad.
2. It includes income earned by Indian Nationals within and outside the country.
3. NNP = C + I + G + (X – M) + (R – P) – Depreciation
4. NNP will be greater than NDP if (R – P) is positive.
Net Domestic Product (NDP):
1. NDP is net value of all final goods and services produced within the domestic boundaries of the country.
2. It does not include income earned by the Indian Nationals outside the country.
3. NDP = C + I + G + (X-M)- Depreciation
4. NDP will be less than NNP if (R – P) is positive and it can be more than NNP if (R – P) is negative.
