Question

On the basis of the data given below, estimate the value of Gross National Product at Factor Cost (GNP_FC):

S. No.	Items	Amount (₹ in crore)
(1)	Private final consumption expenditure	2,000
(2)	Government final consumption expenditure	1,500
(3)	Gross domestic fixed capital formation	1,000
(4)	Addition to stock	400
(5)	Consumption of fixed capital	50
(6)	Net factor income from abroad	100
(7)	Net indirect Taxes	200
(8)	Net Exports	700

Answer 1

GDP_MP = Private final consumption expenditure + Government final consumption expenditure + Gross Domestic Fixed Capital Formation + Net export + Addition to stock.

= 2000 + 1500 + 1000 + 700 + 400

= 5600 crore.

GNP_FC = GDP_MP + NIFA − Net indirect taxes

= 5600 + 100 − 200

= 5500 crore.