Question

Calculate National Income from the following data:

S.No.	Particulars	Rs.in crores
(i)	Private final consumption expenditure	900
(ii)	Profit	100
(iii)	Government final consumption expenditure	400
(iv)	Net indirect taxes	100
(v)	Gross domestic capital formation	250
(vi)	Change in stock	50
(vii)	Net factor income from abroad	(-)40
(viii)	Consumption of fixed capital	20
(ix)	Net imports	30

Answer 1

NNP_FC = Private Final Consumption Expenditure + Government Final Consumption Expenditure − Net Imports + Gross Domestic Capital Formation − Consumption of Fixed Capital − NIT + NFIA

            = 900 + 400 − 30 + 250 − 20 − 100 + (−40)

            = Rs 1,360 crore

(Note: Change in stock is not considered as it is a part of the gross domestic capital formation)