From the following data (all figures in Rs crore), calculate GNP at Market Price, NNP at Market Price, and NNP at Factor Cost (National Income): GDP at Market Price = 12,00,000; Net Factor Income from Abroad = (–) 8,000; Depreciation = 60,000; Net Indirect Taxes = 1,50,000.

Question

Accepted Answer

**Step 1 — GNP at Market Price:**

$$GNP_{MP} = GDP_{MP} + NFIA = 12{,}00{,}000 + (-8{,}000) = 11{,}92{,}000$$

**Step 2 — NNP at Market Price** (deduct depreciation):

$$NNP_{MP} = GNP_{MP} - 	ext{Depreciation} = 11{,}92{,}000 - 60{,}000 = 11{,}32{,}000$$

**Step 3 — NNP at Factor Cost** (deduct net indirect taxes):

$$NNP_{FC} = NNP_{MP} - 	ext{Net Indirect Taxes} = 11{,}32{,}000 - 1{,}50{,}000 = 9{,}82{,}000$$

So National Income (NNP at Factor Cost) = **Rs 9,82,000 crore**.

**Independent check (different order of operations):** convert GDP at MP to GDP at FC first — $GDP_{FC} = 12{,}00{,}000 - 1{,}50{,}000 = 10{,}50{,}000$; then add NFIA — $GNP_{FC} = 10{,}50{,}000 + (-8{,}000) = 10{,}42{,}000$; then deduct depreciation — $NNP_{FC} = 10{,}42{,}000 - 60{,}000 = 9{,}82{,}000$. Both orders give the identical figure, confirming the arithmetic.

> [!ANSWER]
> GNP at Market Price = Rs 11,92,000 crore; NNP at Market Price = Rs 11,32,000 crore; National Income (NNP at Factor Cost) = Rs 9,82,000 crore.

Q.From the following data (all figures in Rs crore), calculate GNP at Market Price, NNP at Market Price, and NNP at Factor Cost (National Income): GDP at Market Price = 12,00,000; Net Factor Income from Abroad = (–) 8,000; Depreciation = 60,000; Net Indirect Taxes = 1,50,000.

Concept understanding — National Income Aggregates (GDP, GNP, NDP, NNP)

Q.From the following data (all figures in Rs crore), calculate GNP at Market Price, NNP at Market Price, and NNP at Factor Cost (National Income): GDP at Market Price = 12,00,000; Net Factor Income from Abroad = (–) 8,000; Depreciation = 60,000; Net Indirect Taxes = 1,50,000.

🎓Unlock everything free for 14 days

Unlock everything free for 14 days