Question

Find out

1. National income 
2. NDP_FC by income method from the following data.

	(₹ crore)
(i) Wages and salaries	3,800
(ii) Dividend	500
(iii) Rent	200
(iv) Interest	150
(v) Gross profits	800
(vi) Employer’s contribution to social security schemes	200
(vii) Net factor income from abroad	(−) 30
(viii) Consumption of fixed capital	40
(ix) Net indirect taxes	300

Answer 1

Give Data (₹ in crore): Wages and Salaries = ₹ 3,800

Employer’s contribution to social security = ₹ 200

Rent = ₹ 200

Interest = ₹ 150

Gross profits (includes Dividend + Undistributed Profit + Corp Tax) = ₹ 800

Net Factor Income from Abroad (NFIA) = ₹ (–30)

Formula: Compensation of Employees = Wages and salaries + Employer’s contribution to social security

= ₹ 3,800 + ₹ 200

= ₹ 4,000 crore

Operating Surplus = Rent + Interest + Profits

(Note: Dividend not counted separately; it’s part of gross profits.)

= ₹ 200 + ₹ 150 + ₹ 800

= ₹ 1,150 crore

(a) National Income (NNP_FC) = NDP_FC + Net Factor Income from Abroad

= ₹ 5,150 + ₹ (–30)

= ₹ 5,120 crore

Mixed Income: Not given ⇒ Assumed 0

(b) NDP at Factor Cost (NDP_FC) = Compensation of Employees + Operating Surplus + Mixed Income

= ₹ 4,000 + ₹ 1,150 + 0

= ₹ 5,150 crore