---
title: "What is GDP, and how is it different from GNP?"  
description: "What is GDP, and how is it different from GNP?"  
author: "Anders Dahl"  
published: 2026-11-12  
updated: 2026-11-12  
canonical: https://answers.mindstick.com/qa/119972/what-is-gdp-and-how-is-it-different-from-gnp  
category: "general knowledge"  
tags: ["GDP vs GNP", "gross domestic product", "economy basics", "national income"]  
reading_time: 1 minute  

---

# What is GDP, and how is it different from GNP?



## Answers

### Answer by Katarzyna Adamczyk

GDP, or Gross Domestic Product, is the total value of all final goods and services produced within a country’s borders in a year, no matter who produces them.

GNP, or Gross National Product, is the total value produced by a country’s citizens and companies, wherever they are in the world. So GNP equals GDP plus income earned by Indians abroad, minus income earned by foreigners in India.

For India, GDP is the main measure used to track economic growth. Related: [what CPI and WPI inflation tell us](https://answers.mindstick.com/qa/117485/why-do-ai-models-tell-different-stories-when-india-s-cpi-and-wpi-diverge).


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