Question

\[ \begin{array}{|l|l|} \hline \textbf{S. No.} & \textbf{Items (in Rs. crore)} \\ \hline (i) & \text{Gross Domestic Fixed Capital Formation = 400} \\ \hline (ii) & \text{Exports = 80} \\ \hline (iii) & \text{Government Final Consumption Expenditure = 500} \\ \hline (iv) & \text{Consumption of Fixed Capital = 70} \\ \hline (v) & \text{Household Final Consumption Expenditure = 640} \\ \hline (vi) & \text{Inventory Investment (Net) = (-80)} \\ \hline (vii) & \text{Imports = 90} \\ \hline (viii) & \text{Net Indirect Taxes = 60} \\ \hline (ix) & \text{Net Factor Income from Abroad = 50} \\ \hline \end{array} \]

Hint:

First calculate \(GDP_{MP}\), then adjust for depreciation and indirect taxes to find \(NDP_{FC}\).

Answer 1

The formula to calculate \(NDP_{FC}\) is: \[ NDP_{FC} = GDP_{MP} - {Depreciation} - {Net Indirect Taxes} \] Where: \[ GDP_{MP} = {Household Consumption Expenditure} + {Government Consumption Expenditure} + {Gross Investment (Fixed + Inventory)} + ( {Exports} - {Imports}) \] Step 1: Calculate \(GDP_{MP}\): \[ GDP_{MP} = 640 + 500 + (400 - 80) + (80 - 90) = 1450 \] Step 2: Subtract Depreciation and Net Indirect Taxes: \[ NDP_{FC} = 1450 - 70 - 60 = 1320 \]