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Ask community Community Discussion Question: What is the relation between NDPMP and NDPFC ?
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Apoorva Dwivedi (7)

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What is the relation between NDPMP and NDPFC ?

    
Bhumika Chauhan (7)

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NDPmp - when depreciation is substrated from GDPmp we get NDPmp. Thus NDPmp= GDPmp- Depreciation. 

In other words, NDPmp is the market value of final goods and services produced within the domestic territory of a country during a year, exclusive of depreciation.

 

NDPFC - When depreciation is subtracted from GDPFC we get NDPFC

Thus NDPFC = GDPFC - Depreciation

In other words NDPFC is the value of final goods and services produced within the domestic territory of a country at factor cost, exclusive of depreciation. It is the sum total of factor incomes generated within the domestic territory and is also known as Domestic Income.

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