Net State Domestic Product
Also called: NSDP, State income · Topic: National Income Accounting: GDP, GVA and Welfare · NCERT: Class 10, Ch 1 "Development"
Meaning
Net State Domestic Product (NSDP), also called state income, is the value of final goods and services produced within a state in a year, minus depreciation. It is the state-level version of NDP.
NSDP = GSDP − depreciation
Per capita NSDP (NSDP ÷ the state's population) is commonly used as a state's per capita income to compare living standards across states. Being an average, it hides inequality within the state.
Example
Suppose a state's GSDP is ₹10 lakh crore and depreciation is ₹1 lakh crore. Its NSDP is ₹9 lakh crore. Dividing this by the state's population gives its per capita income.
Don't confuse with
- GSDP (Gross State Domestic Product): GSDP includes depreciation. NSDP does not.
Related concepts
- Gross National Product
- Net factor income from abroad
- Normal residents
- Domestic territory
- Net Domestic Product
- NDP at factor cost
- Net National Product
- GNP at factor cost
- National income
- Personal income