• Gross Domestic Product (GDP) is the value of all the final goods and services produced within the boundary of a nation during one-year period. For India, this calendar year is from 1st April to 31^st March.

It is also calculated by adding national private consumption, gross investment, government spending and trade balance (exports-minus imports).

• The use of the exports-minus-imports factor removes expenditures on imports not produced in the nation, and adds expenditures of goods and service produced which are exported, but not sold within the country.
• Net Domestic Product (NDP) is the GDP calculated after adjusting the weight of the value of ‘depreciation’. This is, basically, net form of the GDP, i.e., GDP minus the total value of the ‘wear and tear’ (depreciation) that happened in the assets while the goods and services were being produced. Every asset (except human beings) goes for depreciation in the process of their uses, which means they ‘wear and tear’.