Question:

Distinguish between Net Factor Income from Abroad (NFIA) and Net Exports (X -- M).

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NFIA relates to income flows from factors of production; Net Exports covers trade in goods and services.

Updated On: Jun 27, 2025

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NFIA	Net Exports (X – M)
It is the difference between factor income earned from abroad and factor income paid to abroad.	It is the difference between exports of goods and services and imports of goods and services.
Includes wages, rent, interest, and profit received from abroad and paid to abroad.	Includes trade in visible and invisible items (goods and services).
Component of National Income.	Component of Domestic Product.

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On the basis of the given data, estimate the value of National Income (NNP_FC):

S.No.	Items	Amount (in ₹ Crore)
(i)	Household Consumption Expenditure	1,800
(ii)	Gross Business Fixed Capital Formation	1,150
(iii)	Gross Residential Construction Expenditure	1,020
(iv)	Government Final Consumption Expenditure	2,170
(v)	Excess of Imports over Exports	720
(vi)	Inventory Investments	540
(vii)	Gross Public Investments	1,300
(viii)	Net Indirect Taxes	240
(ix)	Net Factor Income from Abroad	(-) 250
(x)	Consumption of Fixed Capital	440

Concentration of KCl solution (mol/L)	Conductivity at 298.15 K (S cm^-1)	Molar Conductivity at 298.15 K (S cm² mol^-1)
1.000	0.1113	111.3
0.100	0.0129	129.0
0.010	0.00141	141.0

Year	Nominal GDP	Nominal GDP (Adjusted to Base Year Price)
2020–21	3,000	5,000
2022–23	4,000	6,000