Question

Calculate Net Domestic Product at Market Price (NDP\textsubscript{MP}) from the data given below:

S. No.	Particulars	Amount (in ₹ lakh)
(i)	Gross Domestic Product at Factor Cost	2200
(ii)	Subsidies	50
(iii)	Indirect Taxes	70
(iv)	Net Factor Income from Abroad	100
(v)	Consumption of Fixed Capital	150
(vi)	Net Exports	40

Hint:

To calculate NDP\textsubscript{MP}, add indirect taxes and subtract subsidies from GDP at factor cost.

Answer 1

\text{To calculate Net Domestic Product at Market Price (NDP\textsubscript{MP}), we need to adjust the Gross Domestic Product at Factor Cost.}
\text{NDP\textsubscript{MP}} = \text{Gross Domestic Product at Factor Cost} + \text{Indirect Taxes} - \text{Subsidies}
\text{NDP\textsubscript{MP}} = 2200 + 70 - 50
\text{NDP\textsubscript{MP}} = 2200 + 20 = 2220 \, \text{lakh}