Some issues on GDP-GNI gap and economic performance

The paper attempts to underline the messages hidden in the estimates of Net Income From Abroad, a measure of gap between GDP and GNI. Behaviour of export and import growth with increasing net negative Investment Income From Abroad, a major component of negative Net Income From Abroad poses some questions on the outcomes of different economic activities that have taken place over a period of time. These questions relate to the impact of the gap of the GDP and GNI on net import, how far foreign investments have been able to boost export or reduce import, whether infrastructure sector attracted foreign investment etc. In short, the paper tries to convey the message that despite GDP being the most important indicator to judge the economic health of a country, Net Income From Abroad gives another dimension to revisit the economic performance.