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SubjectsEconomyIndian Economy — BasicsChapter 1 — National Income1.1 GDP, GNP, NNP & NDP

Topic 1.1 · Economy · National Income

GDP, GNP, NNP & NDP

GDP, GNP, NNP & NDP is studied as part of "National Income" (Indian Economy — Basics) in Economy. National income accounting — GDP, GNP, NNP — measures the size and growth of the economy and is the basis of all economic policy.

In the examination context, gdp, gnp, nnp & ndp carries conceptual questions that test both factual recall and analytical understanding. Revise this topic in sequence with the rest of the chapter so that chronological and thematic links are clear.

Important Facts

GDP
Market value of final goods within a country's borders
GNP
GDP + net factor income from abroad
GDP deflator
Converts nominal GDP to real GDP
Base year
2011-12 for current GDP series (2011-12 base)

Key Points

  • GDP — Market value of final goods within a country's borders
  • GNP — GDP + net factor income from abroad
  • GDP deflator — Converts nominal GDP to real GDP
  • Base year — 2011-12 for current GDP series (2011-12 base)

Important Names

Simon KuznetsP.C. Mahalanobis

Important Dates

1949First National Income Committee appointed
2011-12New GDP base year (2015-16 series)
Exam-Oriented Notes
  • »GDP at market price + net factor income from abroad = GNP. The difference between nominal and real GDP is inflation.

Related topics

1.2 Methods of Measurement1.3 India's National Income Trends1.4 GDP Deflator & Base Year
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