Identify which of the following is not considered as 'Normal Resident' of India?

An Indian working in an American company located in New York for a period of more than 1 year.

The correct answer is Option (4) → An Indian working in an American company located in New York for a period of more than 1 year.

A 'Normal Resident' of a country is an individual or an institution who ordinarily resides in that country and whose center of economic interest also lies in that country. The "center of economic interest" implies that the resident lives in the domestic territory of the country and carries out basic economic activities (earning, spending, accumulation) from that location. A stay of one year or more is generally considered to establish ordinary residence.

Implication of Normal Residents : Production activity of the residents of an economic territory is national product. GNP, NNP are some examples. National product includes production activities of residents (normal) irrespective of whether performed within the economic territory or outside it. In comparison, domestic product includes production activity of the production units located in the economic territory irrespective of whether carried out by the residents or non-residents.

Option 1: Indians working in the USA embassy in India are normal residents of India because they live in India and their economic interest lies in India. The salaries of these Indians will not a part of GDP but it it will be a part of GNP.

Option 2: An Indian official working in Indian embassy in China. Normal resident of India. Because diplomats and officials of Indian embassies abroad are considered normal residents of India.

Option 3: An Indian diplomat visiting Canada for a conference. Normal resident of India. A temporary visit abroad for official work does not change resident status.

Option 4: An Indian working in an American company located in New York for more than 1 year. Not a normal resident of India. This person becomes a normal resident of the USA, as they are living and working there for over 1 year.