Net National Product (NNP)
Definition
The net output of an economy after accounting for depreciation (consumption of fixed capital). Formula: NNP = GNP − Depreciation. NNP at Factor Cost (National Income) = NNP at Market Price − Net Indirect Taxes.
Example
"If GNP = ₹100 Lakhs Crore and Depreciation = ₹8 Lakhs Crore, then NNP at Market Price = ₹92 Lakhs Crore. Subtracting net indirect taxes gives National Income."