Net Material Product and Net Domestic Product-Significance of the Two Concepts for Less Developed Countries

This paper examines the relative significance of the concepts of net domestic product (NDP) and net material product (NMP) for less developed countries. What concept of aggregate production would be the appropriate one is a question which has often been raised by investigators in the field of Indian national income Some of the early estimates of Indian national income, by excluding a number of services, provide a measure of aggregate production which is not very different from what one would obtain by using the concept of NMP In fact, such a restricted use of national income is favoured in certain circles even today.