Question

Calculate Net Domestic Product at Factor Cost by (a) Income Method, an (b) Production Method from the following data :

(Items)	(Rs. in crore)
(i) Net value Added at market price by primary sector	1,000
(ii) Wages and salaries	2,000
(iii) Social Securitl'Contribuiion by Employers	100
(iv) Net value added at market price by the secondary sector	600
(v) Corporation Tax	30
(vi) Retained Earnings of Private Corporations	10
(vii) Net value added at market price by the tertiary sector	1,400
(viii) Dividend	60
(ix) Rent	300
(x) Interest	300
(xi) Net Indirect Tax	200
(xii) Social Security Contribution by Employees	80

Answer 1

(a) By Income Method

Net Domestic Product at Factor Cost (NDP_FC) = Wages and Salaries + Social Security Contribution by Employers + Corporation Tax + Retained Earning of Private Corporations + Dividend +Rent + Interest 

= 2,000+ 100 + 30 + 10 + 60 + 300 + 300 

= Rs. 2,800 crore.