Analyse the information given below and answer the questions.
| ₹ in crores | |
| (i) Net Indirect Taxes | 38 |
| (ii) Consumption of fixed capital | 34 |
| (iii) Net factor Income from Abroad | (-)3 |
| (iv) Rent | 100 |
| (v) Profits | 225 |
| (vi) Interest | 40 |
| (vii) Mixed Income of self-employed | 150 |
| (viii) Wages and salaries | 200 |
| (ix) Employers' contribution to social security schemes | 50 |
From the above information, calculate \( GNP_{FC} \) :
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → ₹796 crores
Given: (₹ crore)
Rent = 100
Profits = 225
Interest = 40
Mixed income of self-employed = 150
Wages and salaries = 200
Employers’ contribution to social security schemes = 50
Net factor income from abroad (NFIA) = −3
Consumption of fixed capital = 34
The factor incomes earned within the country give net domestic product at factor cost (NDPFC). National adds NFIA, and gross adds consumption of fixed capital:
NDPFC = 100 + 225 + 40 + 150 + 200 + 50 = 765
NNPFC = NDPFC + NFIA = 765 + (−3) = 762
GNPFC = NNPFC + Consumption of fixed capital = 762 + 34 = ₹ 796 crore
Net indirect taxes (38) are not added, because the measure is at factor cost.
NCERT (2026-27): Introductory Macroeconomics — Chapter 2: National Income Accounting, Table 2.4: Basic National Income Aggregates
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