Question

Calculate (a) Gross National Product at factor cost and (b) Net National Disposable Income.

	(Rs. in crore)
(i) Compensation of employees	3,000
(ii) Profit	800
(iii) Opening stock	200
(iv) Closing stock	150
(v) Indirect taxes	700
(vi) Rent	600
(vii) Interest	900
(viii) Subsidies	100
(ix) Consumption of fixed capital	850
(x) Net exports	(-) 250
(xi) Net factor income to abroad	300
(xii) Net current transfers from rest of the world	400
(xiii) Mixed income of self-employed	5,000

Answer 1

GNP_fc = i + vi + vii + ii + xiii + ix - xi

=3,000+600+900+800+5000+850-300

= Rs.10,850 Crore

NNDI =GNP_fc + (v - viii) - ix + xii

=10,850+700-100-850+400

=Rs.11,000 Crore