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From the following data, calculate GNPMP and National Income by using the value-added method:

(i) The gross value of output in the primary sector (at FC) 950 crores
(ii) Gross value of output in the secondary sector (at FC) 470 crores
(iii) Gross value of output in the tertiary sector (at FC) 500 crores
(iv) Value of intermediate goods in the primary sector 360 crores
(v) Value of intermediate goods in the secondary sector 200 crores
(vi) Value of intermediate goods in the tertiary sector 175 crores
(vii) Depreciation 20 crores
(viii) Indirect tax 35 crores
(ix) Subsidy 10 crores
(x) Net factor income from abroad 4 crores

1 Answer

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Best answer

Given:

GVO primary (FC) = 950 

GVO secondary (FC) = 470 

GVO tertiary (FC) = 500

Value of intermediate goods in primary sector = 360 

Value of intermediate goods in secondary sector = 200

Value of intermediate goods in tertiary sector = 175

Depreciation = 20 Indirect tax = 35 Subsidy = 10 NFIA = 4

GVAFC = Gross value of output in each sector – Intermediate product in each sector 

= (950 – 360) + (470 – 200) + (500 – 175)

= Rs 1185 crore

GNPMP = GVAFC + Indirect tax – Subsidy + NFIA

= 1185 + 35 – 10 + 4

= Rs 1214 crore 

National Income (NNPFC) = GVAFC – Depreciation + NFIA

= 1185-20 + 4 

= Rs 1169 crore

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