Question

From the following data, calculate:

1. national income 
2. GDP_FC by net output method

	(₹ in crore)
(i) Value of output in primary sector	2,000
(ii) Intermediate consumption of primary sector	200
(iii) Value of output of secondary sector	2,800
(iv) Intermediate consumption of secondary sector	800
(v) Value of output of tertiary sector	1,600
(vi) Intermediate consumption of tertiary sector	600
(vii) Net factor income from abroad	−(30)
(viii) Net indirect taxes	300
(ix) Depreciation	470

Answer 1

Given Data (₹ in crore):

Value of Output: Primary Sector = ₹ 2,000, Secondary Sector = ₹ 2,800, Tertiary Sector = ₹ 1,600

Intermediate Consumption: Primary = ₹ 200, Secondary = ₹ 800, Tertiary = ₹ 600

Net Factor Income from Abroad = ₹ (–30)

Net Indirect Taxes = ₹ 300

Depreciation = ₹ 470

Gross Value added at Market Price (GVA_MP) = `sum`(Value of Output − Intermediate Consumption)

= (₹ 2000 + ₹ 2800 + ₹ 1600) − (₹ 200 + ₹ 800 + ₹ 600)

= ₹ 6,400 – ₹ 1,600

= ₹ 4,800 crore

(a) GDP at Factor Cost (GDP_FC) = GVA_MP – Net Indirect Taxes

= ₹ 4,800 – ₹ 300

= ₹ 4,500 crore

(b) National Income (NNP_FC) = GDP_FC – Depreciation + Net Factor Income from Abroad

= ₹ 4,500 – ₹ 470 + (–30)

= ₹ 4,000 crore