Question

a) Given the following data, find Net Value Added at Factor Cost by Sambhav (a farmer) producing Wheat:

	Items	(₹ in crore)
i)	Sale of wheat by the farmer in the local market	6800
ii)	Purchase of Tractor	5000
iii)	Procurement of wheat by the Government from the farmer	200
iv)	Consumption of wheat by the farming family during the Year	50
v)	Expenditure on the maintenance of existing capital stock	100
vi)	Subsidy	20

b) State any two components of ‘Net Factor Income from Abroad’.

 

Answer 1

a) Net Value Added at Factor Cost (NVA @ FC) 

= (i)+(iii)+(iv)+(vi)-(v) 

= ₹6800+₹200+₹50+₹20-₹100 

= ₹6,970crore

b) Component of net factor income from abroad are: 

i. Net compensation of employees 

ii. Net income from property and entrepreneurship 

iii. Net retained earnings of resident companies abroad