What is GDP/GNP? Difference between GDP or GNP and how to calculate it.

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If you do not know about what is GDP or what is GNP, then let us tell you that it is done to assess the economic condition of the country. If you also want to know the difference between GDP or GNP, then read the whole post.

If you do not know what is GNP or GDP, then tell you that the GDP of any country determines the economy of that country at the international level. GDP contributes a lot to the country’s economy, the economy of a country with a strong GDP is also strong. So let’s know what is GNP, difference between GPN Full Form and GDP or GNP and complete information related to it.

India is a developing country but in today’s time our economy is giving competition to the developed nations. According to experts, India was also invited to this summit held in France due to the fast growing economy and having a good GDP economy. Along with GDP, GNP is also calculated to calculate the rate of economy. Today we will tell you through this post of ours what is GDP and GNP and also what is the difference between GDP and GNP.

What is GNP ?

GNP is the value of all goods and services created by a country’s residents and businesses. GNP calculates the value of all products manufactured by domestic businesses. If that income is subtracted from GDP, which is generated in the country itself but is available abroad (received by the country) and along with it the income earned abroad is added, then GNP is obtained. GNP does not count for any income earned by foreign residents or businesses. Simply put, GNP meaning or GNP means ‘Gross National Product’.

GNP Full Form

GNP Full Form is ‘Gross National Product’,

GNP Definition: Gross National Product (GNP) is the value of all goods and services produced by a country’s residents and businesses, regardless of the place of production.

GNP Formula

Gross National Product (GNP) = Consumption + Investment + Government Spending + X [Exports – Imports] + Z (Net Income Earned by Domestic Residents from Foreign Investment – Domestic Net income earned by foreign residents from investments)

“GNP (Y) = C + I + G + X + Z”

GNP Per Capita is the dollar value of a country’s final output of goods and services in a year, divided by its population.

GDP or GNP Me Antar

Both GDP and GNP reflect the national output and income of an economy. The difference between GDP and GNP is that GNP (Gross National Product) takes into account the net income receipts from abroad. Let us know with the help of the following points that explain the difference between Gross Domestic Product and Gross National Product, any three:

GNP includes net foreign investment rather than net imports and exports. Simply put, GNP includes net foreign investment income as compared to GDP.
Gross Domestic Product (GDP) measures all domestic output irrespective of the nationality of its production units and GNP (Gross National Product) measures the value of output generated by the ‘nationality’ of a region.
GDP refers to the level of domestic production, while GNP measures the level of output of any individual or corporation of a country.

What is GDP ?

GDP is the market value of consumer goods and services in any country. It serves to measure the total output of the country, and at the same time it is the best way to understand the economy of the country. Under this, both the production is done in a country in a year as well as how much service has been consumed by you, both are calculated. GDP is usually calculated on an annual basis but it can also be calculated on a quarterly basis.

In India, the system of only one tax rate for all i.e. GST (Goods Service Tax) has been implemented which will create a unified market in terms of tax implementation and the transaction of goods and services will be seamless across the states. And by which the GDP of the country will also benefit.

What Is GDP Per Capita: GDP Per Capita is also divided by mid-year population. This growth is calculated from the GDP data at constant prices in local currency.

GDP Full Form

GDP Full Form is ‘Gross Domestic Product’

GDP Calculate / GDP Formula

Gross Domestic Product (GDP) = Consumption + Gross Investment + Government Spending + [Exports – Imports]

“GDP = C + I + G + (X − M)”

Consumption:- Most of the household expenses are included in the consumption, such as rent, food, medical expenses etc. The new house is not included in the consumption.
Gross Investment:- It is the expenditure on consumer goods and services, it measures the total expenditure by all the institutions on goods and services within the domestic borders of the country.
Government Spending:– It includes all types of government expenditure such as salary of government employees, buying arms for the army and investment made by the government etc.
Exports:- In export, goods or services prepared for consumption for other countries are counted, and are added to GDP (Gross Domestic Product).
Imports:- It includes imported goods and services, imports are deducted to calculate GDP.

GDP Of India

The economy of India is known as a developing market economy. India is the fifth largest economy in the world by nominal GDP and the third largest by Purchasing Power Parity (PPP). According to the IMF, on the basis of per capita income, India is ranked 142nd by GDP and 119th by GDP (PPP) in 2018. Since the start of the 21st century, annual average GDP growth has risen from 6% to 12.55%, and from 2014 to 2021, India is the world’s fastest-growing major economy, surpassing China.

GDP Of India 2021-22

The World Bank today said that the Indian economy is set to grow at 6.9 per cent in 2023-23, raising its forecast of 6.5 per cent growth made in October.

World Bank revises India’s GDP forecast to 6.9% for FY23 due to robust economic activities. The World Bank has revised India’s 2023-23 GDP growth forecast upward to 6.9 per cent from the earlier estimate of 6.5 per cent, due to robust economic activities according to Dhruv Sharma, Senior Economist at the World Bank.

GDP Calculation In India

Agriculture, Industry, and Services are the three main parts in India, in which GDP is decided on the basis of increase or decrease in production. GDP in India is calculated every quarter (three months).

If we say that the GDP (Gross Domestic Product) of the country is being increased by three percent every year, then it should be understood that the economy is growing at the rate of three percent.

But mostly this figure does not include the inflation rate, the GDP figure is based on the growth rate of production in the major production sectors of the economy.

What is NNP ?

The full form of NNP is “NNP – Net National Product”. It is the monetary value of finished goods and services produced by the citizens of a country both abroad and domestically in a given period. After removing the depreciation in the value of cost from GNP, the remainder is called NNP.

For example, if an Indian company does its business abroad, then the reduction in its cost price in a financial year is deducted from GNP.

Difference Between GDP and NDP

The reasons for the difference between GDP and NDP are as follows:

“GDP” stands for “Gross Domestic Product” while “NDP” stands for “Net Domestic Product”.
GDP is defined as the total market value of all officially recognized products and services that are produced within a specific time period.
NDP is the estimated value of the amount spent to maintain the current GDP of the country.
Formula of GDP = C + G + I + NX. Is. Formula of NDP = GDP – Depreciation
To find the value of the NDP, you need to subtract the depreciation of a country’s capital goods from its GDP.
The difference between GDP and NDP shows that the economy is doing well, and the country’s capital stock is improving.

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Conclusion

So friends, this was information about GDP and GNP. A strong economy and good GDP not only benefit the government, but the general public also benefits a lot from it. The Government of India aims to become the world’s largest economy in the next few years while further improving the GDP. If you liked GNP, GDP and GNP Difference, then don’t forget to share it, and what is GNP in your mind?