Gross National Product at market price of an economy is ₹65,000 cr. The capital stock of the economy is valued at ₹1,20,000 cr. which depreciated at the rate of 10% p.a. Indirect taxes amount to ₹6,000 cr. and subsidies to ₹1,000 cr. Estimate the National Income (NNPfc).

48000 cr.

The correct answer is Option (3) → 48000 cr.

Gross National Product at market price =  ₹65,000 cr.

Depreciation = 10% of ₹1,20,000 cr. = 12,000 Cr

Indirect taxes amount to ₹6,000 cr.

Subsidies to ₹1,000 cr. 

Net Indirect Taxes = Indirect taxes - Subsidies 

                           = 6,000 - 1,000 = 5,000 Cr

National Income = NNP at Factor Price

NNP at Market price = GNP at market price - depreciation

                             = 65,000 - 12,000= 53,000 cr

NNP at FC = NNP at Market price - NIT

                = 53,000 - 5,000 = 48,000 Cr