Question

Suppose in a financial year, the Gross. Domestic Product (GDP) at market price of a country was ₹ 1,100 crore. Net factor income from Abroad was ₹ 100 crore, the net indirect taxes was ₹ 150 crore and National income was ₹ 850 crore.

Calculate the value of depreciation, on the basis of above information.

Answer 1

Given: GDP_MP = 1,100 crore

NFIA = 100 crore

NIT = 150 crore

National Income (NNP_FC) = 850 crore

To Find: Depreciation =?

Solution: NDP_FC = NNP_FC - NFIA + NIT

= 850 - 100 + 150

= 900 core

Depreciation = GDP_MP - NDP_MP

= 1,100 - 900

= 200 core