Suppose the GDP at Market price of a country in particular year was ₹1500 crores; Net factor income from abroad was ₹200 crores. The value of Net indirect taxes was ₹100 crores and National income was 1900 crores. The aggregate value of depreciation will be ________.

₹300 crores

The correct answer is option (2) : ₹300 crores

Given:

• GDP at Market Price (GDP MP) = ₹1500 crores
• Net Factor Income from Abroad (NFIA) = ₹200 crores
• Net Indirect Taxes (NIT) = ₹100 crores
• National Income (NI) or NNP (FC) = ₹1900 crores

NNP (MP)= GNP (MP)- Depreciation -----------(1)

Step 1: Find NNP (MP) from National Income

NNP (FC) = NNP (MP) - NIT

1900 = NNP (MP) - 100

NNP (MP) =1900 + 100

NNP (MP) = 2,000

Step 2:  Find GNP (MP) from GDP (MP)

GNP (MP) = GDP (MP) + NFIA

GNP (MP) = 1500 + 200

GNP (MP) = 1700

NNP (MP)= GNP (MP)- Depreciation

Depreciation = NNP (MP) - GNP (MP)

                     = 2,000 - 1,700

                     = 300