Question

Calculation (a) Net National Product at market price, and (b) Gross Domestic Product at factor cost:

		(Rs in crores)
1	Rent and Interest	6000
2	Wages and Salaries	1800
3	Undistributed Profit	400
4	Net indirect taxes	100
5	Subsidies	20
6	Corporation tax	120
7	Net factor income to abroad	70
8	Dividends	80
9	Consumption of fixed capital	50
10	Social security contribution by employers	200
11	Mixed income	1000

 

Answer 1

NDP_FC = Wages and salaries + SSC by employer + Rent and interest + Dividend + Corporation tax + undistributed profit + mixed income
NDP_FC = 1800 + 200 + 6000 + 80 + 120 + 400 + 1000
NDP_FC = Rs 9600 Crore

NNP_MP = NDPFC + NFIA + NIT
NNP_MP = 9600 + (-70) + 100
NNP_MP = 9630

GDP_FC = NDPFC + Consumption of fixed capital
GDP_FC = 9600+ 50
GDP_FC = 9650