Indian Economy – National Income

National Income is one of the most important indicators used to measure the economic performance of a country. It represents the total value of goods and services produced by a country during a specific period, usually one year.

Gross Domestic Product (GDP)

Gross Domestic Product (GDP) refers to the total market value of all final goods and services produced within the geographical boundaries of a country during a specific period.

GDP is widely used to measure the economic growth and development of a nation.

Gross National Product (GNP)

Gross National Product (GNP) includes the total value of goods and services produced by the residents of a country, both within the country and abroad.

Formula:
GNP = GDP + Net Income from Abroad

Net National Product (NNP)

Net National Product (NNP) is calculated by subtracting depreciation from GNP.

Formula:
NNP = GNP – Depreciation

Per Capita Income

Per Capita Income refers to the average income earned per person in a country during a particular year.

Formula:
Per Capita Income = National Income ÷ Total Population

It is often used to measure the standard of living of people in a country.