What is the Difference Between NNP and NDP?

By Mandeep Kumar|Updated : August 11th, 2022

NNP is the acronym for Net National Product whereas NDP is the short form of Net Domestic Product. NNP is the total market value of all final goods and services produced by the factors of production of a country during a given time period, minus depreciation. On the other hand, NDP accounts for the capital that has been utilized over the year in the form of vehicle, housing, or machinery deterioration.

Difference Between NNP and NDP

The key differences between NDP and NNP are given in the table below.

NNP

NDP

NNP = GNP - Depreciation

NDP = GDP - Depreciation

It is equal to the product of per capita income and population.

Currencies and the depreciation of assets are taken into account.

It gives the accurate total value of goods and services by a country.

It cannot be used for comparison across the world due to different rates of depreciation.

NNP is the National Income of an economy.

It will be always lower than GDP.

It is closely related to the concept of Gross National Product (GNP).

The difference between NDP and GDP indicates the obsoleteness of capital goods.

It indicates the total production of a country.

A decrease in the gap between NDP and GDP indicates the condition of capital stock in the country is improving.

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FAQs on NNP and NDP

  • The total monetary value of goods and services produced by a country's citizens, overseas and domestically, in a certain time is called Net National Product (NNP).

  • The yearly measure of a country’s economic output that is adjusted to account for depreciation is known as Net Domestic Product (NDP). It represents the net book value of all goods and services produced within a nation's geographic borders.

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