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NDP vs GDP: Re-evaluating measurement of economic performance

16 Jan '26
4 min read
NDP vs GDP: Re-evaluating measurement of economic performance
Pic: Shutterstock

Insights

  • As countries rethink how growth is measured, UN's SNA 2025's elevation of NDP marks a shift from headline output to sustainable value creation.
  • Shifting towards NDP changes how growth is judged by stripping out depreciation and natural resource loss.
  • The move also forces better tracking of capital, climate and energy assets, tying economic success more closely to long-term sustainability.

Under the new framework, NDP adjusts GDP by subtracting capital depreciation and the depletion of natural resources and is being emphasised as a more robust indicator of sustainable economic output.

Countries such as India are actively considering a shift from GDP to NDP as a headline economic metric, with policymakers targeting implementation by the ****-** fiscal year, a move officials say would align national accounting with global best practices and support clearer policy decisions on investment, infrastructure and productive capacity by highlighting net economic gains.

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