Consider the following data relating to the financial year 2021-2022 and answer the following questions based on this data.

What is the value of Net Factor Income from/to Abroad?

- ₹10,000

The correct answer is Option 1: - ₹10,000

NDP_MP + Net Factor Income from Abroad = NNP_MP
₹ 1,00,000 + Net factor income from abroad = ₹ 90,000
Net factor income from abroad = ₹ 90,000 – ₹ 1,00,000 = -10,000
Negative sign means it is net factor income to abroad.

Alternatively:

The formula for NFIA is:

NFIA = NNP_MP - NDP_MP

NFIA=90,000-100,000=-10,000

NDP_MP stands for net domestic product at market prices. It is GDP_MP minus consumption of fixed capital (depreciation).

NNP_MP stands for net national product at market prices. It is NDP_MP plus net factor income from abroad.