Question

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

Hint:

NNPFC is derived by adjusting GDPMP for depreciation, indirect taxes, subsidies, and net factor income from abroad.

Answer 1

National Income (NNPFC) is calculated using the following formula: \[ NNPFC = GDPMP - Depreciation - Net Indirect Taxes + Net Factor Income from Abroad \] Step 1: Calculate GDPMP \[ GDPMP = \text{Pvt Final Consumption Exp} + \text{Govt Final Consump Exp} + \text{GDFCF} + \text{Addin Stock} + \text{Export} \] \[ = 200 + 110 + 30 + 20 + (-40) = 320 \] Step 2: Convert GDPMP to NNPFC \[ NNPFC = GDPMP - \text{Depreciation} - (\text{Indirect Taxes} - \text{Subsidies}) + \text{Net Factor Income from Abroad} \] \[ = 320 - 15 - (60 - 15) + (-40) \] \[ = 320 - 15 - 45 - 40 = 220 \] Final Answer: \[ \mathbf{NNPFC = Rs. 220 \text{ crore}} \]