Suppose the $G D P$ at market price of a country in a particular year was $R s . 1, 100$ crores. Net factor income from abroad was $R s . 100$ crores. The value of (Indirect taxes $-$ Subsidies) was $R s .150$ crores and national income was $R s . 850$ crores. Calculate the aggregate value of depreciation.

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Solution

$G D P_{M P} = N N P_{F C} + D e p r e c i a t i o n - N F I A + N I T$
$1, 100 = 850 +$ Depreciation $- 100 + 150$
Depreciation $= R s . 200$ crores.

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