Question

Estimate the value of Net National Product at Factor Cost (NNP\(_{FC}\)), using the following information: 

Hint:

NNP\(_{FC}\) is derived by adjusting GDP for depreciation, net factor income from abroad, and net indirect taxes.

Answer 1

The formula for Net National Product at Factor Cost (NNP\(_{FC}\)) is: \[ {NNP}_{{FC}} = {(i) + (ii) + (iii) + (vi) + (ix)} - {(iv)} - {(v)} + {(viii)} - {(vii)} \] Substituting the given values: 
\[ {NNP}_{{FC}} = 1,200 + 800 + 500 - 50 + 70 - 100 - 150 + 80 - 200 \] \[ = 2,150 \, {crores}. \] 

Thus, the estimated value of NNP\(_{FC}\) is Rupees 2,150 crore.