Measures of the Nation's economy: GDP, GNP, NDP

Gross Domestic Product (GDP ) or Gross Domestic Income (GDI) refers to the value of all completed goods and services produced within the country in a year (or a stipulated time period).

GDP = consumption + gross investment + government spending + (exports − imports)

It is regarded as the sum of profits added at every level of production. India was ranked 12th in the world in 2007, as far as GDP is concerned. Gross domestic product per capita is the mean value of the output produced per person, which is also the mean income.

While calculating GDP, the depreciation of capital stock is not considered (this is known as "gross"). If the depreciation is taken into account and subtracted from the GDP, then the indicator is called the Net Domestic Product. The gap between these two should ideally be narrowing - indicating an improving condition of capital stock.

Gross National Product defines the value of all goods and services produced in a country in one year, plus income earned by its citizens abroad, minus income earned by foreigners in the country.

GDP is more popular than GNP as a large number of nationals work in countries abroad these days.

Gross National Income (GNI) refers to the country's GDP, together with the income it receives from other countries through interests and dividends, minus similar payments it makes to other countries.

GNI is similar to GNP, but while calculating GNI you deduct indirect business taxes as well.