Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

We all know the situation of "Brain drain" in India, a large number of Indian nationals settle in USA etc. as residents ( not as nationals). Which of the following options stands to be true in regards to the above statement?

Options:

For India they are non-resident Indians but are Indian nationals

For America they are non-resident American but are Indian nationals

For India they are resident Indians and Indian nationals

None of the above

Correct Answer:

For India they are non-resident Indians but are Indian nationals

Explanation:

In economics, in order to become a normal resident of a country, the following 2 conditions needs to fulfilled:

  • Should have lived for more than 1 year
  • The individual's economic interest must lie in that country

Thus, people who settle in USA as residents are considered as non-resident Indians but still are considered as Indian nationals as they haven't received citizenship of the other country. But because there economic interest now lies in USA, they will be considered as residents of USA.