Which of the following is a part of Domestic product of India ?

(A) Gifts given by employer to his employees

(B) Profits earned by branches of country's bank in other countries

(C) Profits earned by foreign companies in India

(D) Purchase of goods by foreign tourists

Choose the correct answer from the options given below :

(C) and (D) Only

 The correct answer is option (4) : (C) and (D) Only

• (A) Gifts given by employer to his employees: Gifts given by employers to employees are considered a form of compensation or fringe benefit. While this adds to the income of individuals, it is not counted in the calculation of GDP (Gross Domestic Product) because it does not represent production of goods or services.

• (B) Profits earned by branches of country's bank in other countries: This represents profits earned by Indian banks' branches located in other countries. These profits are considered part of the Income from Abroad (Factor Income from Abroad), not part of the Domestic Product of India.

• (C) Profits earned by foreign companies in India: This refers to profits earned by foreign companies from their operations and investments in India. These profits are included in the Domestic Product of India.

• (D) Purchase of goods by foreign tourists: This represents exports of goods and services to foreign tourists, which contribute to India's Gross Domestic Product (GDP).