Depreciation

noun

/dɪˌpriːʃiˈeɪʃən/

The decline in the value of a capital asset (machinery, equipment, buildings) over time due to wear and tear, obsolescence, or usage — also called "consumption of fixed capital" in national income accounting. Subtracting depreciation from gross measures gives net measures (GDP − Depreciation = NDP; GNP − Depreciation = NNP).

✍️ Usage in a UPSC answer

A sustained depreciation of the rupee, while inflating the import bill for crude and capital goods, can simultaneously enhance the competitiveness of Indian exports, leaving policymakers to weigh price stability against the trade balance.

Synonyms

devaluationdeclinedepreciation in valuewrite-downdiminutionmarkdown

Antonyms

appreciationrevaluationenhancement

🌱 Word Family

depreciate (v), depreciated (adj), depreciating (v pres.p), depreciatory (adj), depreciable (adj)

🔡 Root

Late Latin dēpretiātiō; dē- = down + pretium = price, value; literally a lowering of value

📜 Etymology

From late Latin dēpretiātiō, from Latin dē- ("down") + pretium ("price, value") — literally "a lowering of value."

🧠 Memory Hook

De- (down) + pretium (price) — the "price" goes DOWN; think of a new car losing value the moment it leaves the showroom.

💰 Indian Economy 📖 Seen in: National Income & Economic Indicators ...

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