The different uses of the concept of NDP are as given below:

(a) For domestic use only to understand the historical situation of the loss due to
depreciation to
the economy. Also used to understand and analyse the sectoral situation of
depreciation in
industry and trade in comparative periods.
(b) To show the achievements of the economy in the area of research and
development which
have tried cutting the levels of depreciation in a historical time period.
depreciation and its rates are used by the modern governments as a tool of economic
policy-making
also, which is the third way how depreciation is used in economics.
GNP
(i) Trade Balance: the net outcome at the year end of the total exports and imports of
a country
may be positive or negative accordingly added with the GDP (in Indias case it has
always
been negative except the three consecutive years 2000-03 when it was positive, due
to high
levels of services sector export during the years courtsey the booming BPO
industry).
(ii) Interest of External Loans: the net outcome on the front of the interest payments
i.e. balance
of the inflow (on the money lend out by the economy) and the outflow (on the money
borrowed
by the economy) of the external interests. In Indias case it has been always negative
as the
economy has been a net borrower from the world economies.
(iii) Private Remittances: the net outcome of the money which inflows and outflows
on account of
the private transfers by the Indian nationals working outside India (to India) and the
foreign
nationals working in India (to their home countries). On this front India has been
always a
gainer- till early 1990s from the Gulf region (which fell down afterwards in the wake of
the
heavy country-bound movements of the Indians working there due to the Gulf War)
and
afterwards from the USA and the European nations. Basically, during the year 2012,
India is
projected (as per the IMF) to be the highest receiver of this fund to the tune of $58
billion (it
was the second highest in 2011 at $55 billion, China was the top gainer with $57
billion).
The different uses of the concept GNP are as given below:
(a) This is the national income according to which the IMF ranks the nations of the
world in
terms of the volumes at the Purchasing Power Parity (at PPP). For detailed
discussion on the
PPP readers may search for it alphabetically in the Chapter- 24. India is ranked as the
4th
largest economy of the world (after the USA, Japan and China)- while as per the
nominal/
prevailing exchange rate of rupee India is the 13th largest economy.

(b) It is the more exhaustive concept of national income than the GDP as it indicates
about the
quantitative as well as the qualitative aspect of the economy, i.e., the internal as
well
as the external strength of the economy.
(c) 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 trade
balance);
what is the standard of its human resource in international parlance (shown by the
size and the
net flow of its private remittances); what position it holds regarding financial support
from
and to the world economies (shown by the net flow of interests on external
lending/borrowing).