Why is Gross National Product GNP a better measure of national income than Gross Domestic Product GD...........

Economic Affairs Growth and Indicators

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Why is Gross National Product (GNP) a better measure of national income than Gross Domestic Product (GDP)?

GNP reflects an economy’s interconnection and interdependence on world economy, which is not captured by GDP.
GNP includes the idea of depreciation of national capital that is not accounted by GDP.
GNP accounts for the population headcount in the nation that GDP does not include.

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Explanation:

The normal formula is GNP = GDP Income from Abroad. But it becomes GNP = GDP (—Income from Abroad) = GDP — Income from Abroad, in the case of India.

IFA usually includes remittances, trade balance and interest on external loans.

This is because usually the IFA component of India is negative. So, India's GNP is generally lower than its GDP. The different uses of the concept GNP are as given below:

This is the 'national income' according to which the IMF ranks the nations of the world in terms of the volumes—at Purchasing Power Parity (at PPP).

India is ranked as the 4th largest economy of the world (after the USA, China and Japan), while as per the nominal/ prevailing exchange rate of rupee, India is the 11th largest economy.

It is the more exhaustive concept of national income than the GDP as it indicates towards the 'quantitative 'as well as the 'qualitative 'aspects of the economy, i.e., the 'internal' as well as the 'external' strength of the economy.
It enables us to learn several facts about the production behaviour and pattern of an economy, such as, how much the outside world is dependent on its product and how much it depends on the world for the same (numerically shown by the size and net flow of its 'balance of trade') etc.

Statement 2: It is the Net National Income (NNI) or NNP or NDP that includes depreciation.