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Exercises · Q4

Q.From the following data, calculate

(i) GNP at Market Price,
(ii) NNP at Market Price, and
(iii) National Income (NNP at Factor Cost):
GDP at Market Price = ₹5,00,000 crore; Net Factor Income from Abroad = (−) ₹8,000 crore; Depreciation = ₹20,000 crore; Net Indirect Taxes = ₹35,000 crore.
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Step 1 — GNP at Market Price:

GNPMP=GDPMP+NFIA=5,00,000+(−8,000)=₹4,92,000 croreGNP_{MP} = GDP_{MP} + NFIA = 5,00,000 + (-8,000) = ₹4,92,000\ \text{crore}

Step 2 — NNP at Market Price:

NNPMP=GNPMP−Depreciation=4,92,000−20,000=₹4,72,000 croreNNP_{MP} = GNP_{MP} - \text{Depreciation} = 4,92,000 - 20,000 = ₹4,72,000\ \text{crore}

Step 3 — National Income (NNP at Factor Cost):

NI=NNPFC=NNPMP−Net Indirect Taxes=4,72,000−35,000=₹4,37,000 croreNI = NNP_{FC} = NNP_{MP} - \text{Net Indirect Taxes} = 4,72,000 - 35,000 = ₹4,37,000\ \text{crore} …

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