Question

Calculate Domestic Income:

Particulars	Rs. in crores
(i) GNP at FC (ii) Indirect Taxes (iii) Factor income from abroad (iv) Factor income to abroad (v) Replacement of Fixed Capital	2,700 60 150 180 150

Answer 1

Formula: Domestic Income or NDP at Factor cost = GNP at FC - Replacement of Fixed Capital - Factor income from abroad + Factor income to abroad
= 2700 - 150 - 150 + 180
= 2580.