What is the use of Net National Product (NNP)?

Net National Product (NNP) is an important economic indicator that reflects the total value of all goods and services
 produced by a country’s citizens and businesses, both domestically and abroad
The use of Net National Product is to calculate per capita income.

• Net National Product (NNP):
NNP is obtained by subtracting depreciation value (i.e. capital stock consumption) from GNP.
NNP reflects the true net income of an economy, it helps governments and businesses in planning for the long term.

🔴Additional Information:

• Gross Domestic Product (GDP):
It is the total money value of all final goods and services produced within the geographical boundaries of the country during a given period of time.
GDP = C + G + I
C = Consumption expenditure
G = Government expenditure
I = Investment expenditure

• Gross National Product (GNP):
It refers to the money value of the total output of production of final goods and services produced by the nationals of a country during a given period of time, generally a year.

• National Income (NI):
When NNP is calculated at factor cost (FC) it is called National Income.
The measure is calculated by deducting indirect taxes and adding subsidies in NNP at Market Price (MP).
In India, the Wholesale Price Index (WPI) is the weighted average price of 676 items with the base year 2017-18.