Question

On the basis of the data given below for an imaginary economy, estimate the Net Domestic Product at Factor Cost (NDP_FC):

S.NO.	Items	Amount (₹ in crore)
(i)	Household Consumption Expenditure	3,000
(ii)	Government Final Consumption Expenditure	1,000
(iii)	Net Domestic Fixed Capital Formation	1,000
(iv)	Change in Stock	200
(v)	Exports	500
(vi)	Indirect Taxes	350
(vii)	Imports	300
(viii)	Subsidies	50

Answer 1

NDP_FC = GDP_MP - Depreciation - Net Indirect Taxes

= 5,400 - 0 - 300 = 5100 crore

GDP_MP = Final Consumption Expenditure + Gross Domestic Capital Formation + Net Exports 

= 4,000 + 12,000 + 200 = 5,400 crore

1. Final Consumption Expenditure = Household Consumption Expenditure + Government Final Consumption Expenditure 
   = 3,000 + 1,000 = 4,000 crore
2. Gross Domestic Capital Formation = Net Domestic Fixed Capital Formation + Depreciation + Change in Stock 
   = 1,000 + 0 + 200 = 1,200 crore
3. Net Export = Exports - Imports = 500 - 300 = 200 crore
4. Net Indirect Taxes = Indirect Taxes - Subsides = 350 - 50 = 300 crore