No because when we add dep. in this it will be converte in gross but national income is NNP fc not GDP Fc

Net Domestic Capital Formation and Depreciation

Introduction
Net domestic capital formation (NDCF) refers to the increase in the stock of capital goods in an economy over a year. Depreciation, on the other hand, is the decrease in the value of capital goods due to wear and tear, obsolescence, and other factors. The question arises whether depreciation should be added to NDCF or not.

Arguments for Adding Depreciation to NDCF
1. Accurate Measurement: Including depreciation in NDCF gives a more accurate measure of the increase in the capital stock of an economy. It accounts for the loss of value in existing capital goods and the need for new investments to replace them.
2. Replacement Investment: Depreciation represents the investment required to replace the existing capital goods that have worn out. Including this investment in NDCF reflects the true level of investment required to maintain and expand the capital stock of an economy.
3. Economic Growth: NDCF is an important indicator of economic growth and development. Including depreciation in NDCF enables policymakers to measure the true level of investment required to maintain and expand the capital stock, which is essential for sustained economic growth.

Arguments against Adding Depreciation to NDCF
1. Double Counting: Some argue that adding depreciation to NDCF is double counting because it includes the replacement investment required to maintain the existing capital stock.
2. Overestimation: Including depreciation in NDCF may overestimate the true level of investment because it assumes that all capital goods need to be replaced. However, some assets may have a longer lifespan than the average depreciation rate used to calculate NDCF.
3. Focus on Gross Investment: Some argue that policymakers should focus on gross investment instead of NDCF because it reflects the total investment in an economy, including replacement investment, without double-counting.

Conclusion
Both arguments have their merits, and the decision to include or exclude depreciation from NDCF depends on the purpose of the measurement. If the goal is to measure the true level of investment required to maintain and expand the capital stock, then depreciation should be included in NDCF. However, if the focus is on gross investment, then policymakers should use a measure that captures total investment without double-counting.