Scroll Top


    Gross National Product (GNP)

    What is Gross National Product (GNP)?

    The total value of all finished goods and services provided by a country's citizens during a given financial year is known as Gross National Product (GNP). It is irrespective of their location. GNP also approximates the output of a country's businesses, whether they are established within the country or abroad. It includes Gross Domestic Product (GDP) and income obtained by the residents from investments made overseas.

    Understanding Gross National Product (GNP)

    GNP suggests how a country's people pledge to its economy. It reflects citizenship, notwithstanding the site of the ownership. GNP does not include the income of foreign residents within the country. It also does not tally the money earned in India by foreign residents and ignores products that have been manufactured by foreign companies.

    In calculation, GNP syndicates government spending, personal consumption spending, net trades, private domestic investments and income generated by nationals overseas It does not look at the income of foreign residents within the domestic economy. Moreover, GNP removes the value of intermediary goods to avoid double counting. This is because these entries are part of the value of final products and services.

    Calculation of Gross National Product (GNP)

    Formula for GNP = GDP + The Net factor income from abroad


    GNP = C + I + G + X + Z

    Where C is Consumption, I is an investment, X is net exports, G is government, and Z is the net income received by domestic residents from overseas investments minus the net income earned by foreign residents from domestic investments.

    Popular Topics

    Latest Articles

    Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

    Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

    CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

    Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

    Cleartax is a product by Defmacro Software Pvt. Ltd.

    Company PolicyTerms of use


    ISO 27001

    Data Center


    SSL Certified Site

    128-bit encryption