Identify which of the following is not considered as 'Normal Resident' of India?
Answer & explanation
Correct answer: option 4
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 a person who normally lives there and has the centre of his economic interest there. A person living and working abroad for more than one year counts as a normal resident of that country. So the person in Option (4) is not a normal resident of India.
Option (1) An Indian citizen working in USA embassy located at New Delhi. — A normal resident of India (Incorrect). This person lives and works in India. Working for a foreign employer does not change that.
Option (2) An Indian official working in Indian embassy in China. — A normal resident of India (Incorrect). This official works for the Government of India and is only posted abroad on its work. Embassy staff remain normal residents of their own country.
Option (3) An Indian diplomat visiting Canada for a conference. — A normal resident of India (Incorrect). This is a short visit, so the diplomat’s home and economic interest stay in India.
Option (4) An Indian working in an American company located in New York for a period of more than 1 year. — Not a normal resident of India (Correct). This person has lived and worked in the USA for over a year, with an American employer. He is a normal resident of the USA.
Note: The NCERT books (2026-27, 2025-26, 2023-24 and pre-rationalised) use the term ‘normal residents’ while explaining GNP. None of them defines it or deals with embassy staff. The standard meaning is used here.
NCERT (2026-27): Introductory Macroeconomics — Chapter 2: National Income Accounting, Table 2.4: Basic National Income Aggregates
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