What is the Difference Between NNP and NDP?

By Mandeep Kumar|Updated : December 30th, 2022

The difference between NNP and NDP is based on their measurement method for calculating national income. NNP is the total market value of all final goods and services produced by a country's factors of production during a given time period, minus depreciation. On the other hand, NDP accounts for capital that has been used up during the year in the form of damage to vehicles, housing, or machinery.

Difference Between NNP and NDP

NNP is the abbreviation for Net National Product, while NDP is the abbreviation for Net Domestic Product. The difference Between NNP and NDP is 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 always be 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.

The narrowing of the gap between NDP and GDP indicates that the capital stock position in the country is improving.

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