Give Short answers:

Why NNP is not considered as a useful measure to compare a country’s development with other countries?

Gross Domestic Product or GDP is the value of all the final goods and services produced in a country during one year. Net National product or NNP is the GDP plus the Net factor income from abroad or NFIA minus the depreciation (fall in the value of goods and services over time). NNP is not considered as a useful measure to compare a country’s development with other countries because of the following reasons:

NNP accounts for using depreciation but the value of depreciation is different in different economies.

NNP= GDP+NFIA-depreciation. If we assume NFIA to be constant, the NNP can change due to a change in GDP or depreciation. But it is difficult to assess whether the GDP is increasing, or depreciation is rising or decreasing.

India receives a large number of remittances as compared to other countries. This makes NNP an unfavourable measure to calculate development.

NNP has a more complex calculation system.

It is due to these reasons that NNP is not considered a useful measure to compare different country’s development.