Question

Calculate (a) Net National Product at market price, and (b) Gross Domestic Product at factor cost.

(i) Rent and interest	(Rs. in crores) $6,000$
(ii) Wages and salaries	$1,800$
(iii) Undistributed profit	$400$
(iv) Net indirect taxes	$100$
(v) Subsidies	$20$
(vi) Corporation tax	$120$
(vii) Net factor income to abroad	$70$
(viii) Dividends	$80$
(ix) Consumption of fixed capital	$50$
(x) Social security contribution by employers	$200$
(xi) Mixed income	$1,000$

Answer 1

GDP at FC = (i) + [(ii) + (x)] + [(iii) + (vi) + (viii)] + (xi) + (ix)

= 6000 + [1800 + 200] + [400 + 120 + 80] + 1000 + 50

= 6000 + 2000 + 600 + 1000 + 50 = Rs. 9650 cr.

NNP at MP = GDP at FC + (iv) – (ix) – (vii)

= 9650 + 100 – 50 – 70 = Rs.9630 cr.