GDP vs GNP
Gross Domestic Product (GDP) and Gross National Product (GNP) are two key measures of a nation's economic output that differ in what they include.
Gross Domestic Product (GDP) and Gross National Product (GNP) are two key measures of a nation's economic output that differ in what they include.
The core difference
GDP measures the value of all goods and services produced within a country's borders. GNP adds net factor income from abroad — income earned by residents overseas minus income earned by foreigners domestically.
Related measures
Subtracting depreciation gives Net Domestic Product (NDP) or Net National Product (NNP). National income is usually measured as NNP at factor cost.
Why it matters for UPSC
The GDP–GNP distinction and the role of net factor income from abroad are classic Economy Prelims topics.
Practise related UPSC PYQs
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Practise PYQs →Frequently asked questions
What is the difference between GDP and GNP?
GDP measures output within a country's borders; GNP adds net factor income earned by residents from abroad.
What is Net National Product?
GNP minus depreciation (consumption of fixed capital).