Question

Calculate “Gross National Product at Market Price” from the following data:

S. No.	Particulars	(Rs in crores)
(i)	Compensation of employees	2,000
(ii)	Interest	500
(iii)	Rent	700
(iv)	Profits	800
(v)	Employer’s contribution to social security schemes	200
(vi)	Dividends	300
(vii)	Consumption of fixed capital	100
(viii)	Net indirect taxes	250
(ix)	Net exports	70
(x)	Net factor income to abroad	150
(xi)	Mixed income of self-employed	1,500

Answer 1

NDP at Factor Cost (sum of domestic factor incomes)

NDP_₍fc₎ = 2,000 + 200 + 700 + 500 + 800 + 300 + 1,500

= 6,000

From NDP_₍fc₎ to GNP_₍mp₎

Add consumption of fixed capital (depreciation) to move from NDP → GDP: +100 ⇒ 6,100

Add net indirect taxes to move from FC → MP: +250 ⇒ 6,350

Add net factor income from abroad (NFIA). Given “net factor income to abroad = 150”, so NFIA = −150: 6,350 − 150

= 6,200