From the following data calculate net domestic product at factor cost.
| S.No | Item | ₹ crore |
| (I) | Depreciation | 20 |
| (II) | Gross National Product at Factor Cost | 1000 |
| (III) | Net factor income from abroad | 30 |
| (IV) | Net indirect taxes | 10 |
Answer & explanation
Correct answer: option 4
The correct answer is option (4) : ₹ 950 crores
To calculate Net Domestic Product at Factor Cost (NDP at FC), we use the following formula :
NDP at FC = Gross National Product at Factor Cost (GNP at DC) - Depreciation - NFIA
Given the provided data :
(i) GNP at FC = ₹1000 crores
(ii) Depreciation = ₹20 crores
(iv) NFIA = ₹30 crores
GDP (FC)= GNP (FC)- NFIA
= 1000-30
= 970
NDP (FC)= GDP (FC) - Depreciation
= 970-20
= ₹950 crores