Identify the correct interpretation of Gross National Product (GNP).

Correct option is B

The correct answer is (b) Income earned by Indians at home and abroad.
• Gross National Product (GNP) measures the total value of goods and services produced by a nation’s residents — both domestically and overseas.
Information Booster:
• Formula: GNP = GDP + Net Factor Income from Abroad (NFIA).
• NFIA = Income earned by Indians abroad – Income earned by foreigners in India.
• Reflects the economic strength of citizens rather than geographical boundaries.
• Used to compare a country’s global income capacity.
• Measured annually at market prices.
Additional Knowledge:
• GDP considers domestic production only.
• NNP = GNP – Depreciation.
• India’s GNP is estimated by National Statistical Office (NSO).
• GNP helps in assessing the living standards and external sector influence.