Question

From the data given below, calculate Gross Domestic Product at market price and National Income (NNPFC) using the Value Added Method:

(i) Gross Value of output in the primary sector (at factor cost)	950 Crores
(ii) Gross Value of output in the secondary sector (at factor cost)	470 Crores
(iii) Gross Value of output in the tertiary sector (at factor cost)	500 Crores
(iv) Value of intermediate product in the primary sector	360 Crores
(v) Value of intermediate product in the secondary sector	200 Crores
(vi) Value of intermediate product 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

Answer 1

NVA (at factor cost value of gross output) 

The gross value of output in the primary sector (at factor cost) = 950

The gross value of output in the secondary sector (at factor cost) = 470

The gross value of output in the tertiary sector (at factor cost) = 500

Total = 1920

Less value of the intermediate product in the primary sector + secondary sector + tertiary sector

= 360 + 200 + 175 

= 735

Less depreciation = 20

Less net indirect tax

Direct tax = 35

Less subsidy = 10

NVA = 1145

National Income = NVA + Net Factor Income from abroad = 1145 + 4 = 1149 (in crore)