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Question:

Calculate (a) Net National Product at market price, and (b) Gross Domestic Product at factor cost.
(i) Rent and interest (Rs. in crores) 6,000
(ii) Wages and salaries 1,800
(iii) Undistributed profit 400
(iv) Net indirect taxes 100
(v) Subsidies 20
(vi) Corporation tax 120
(vii) Net factor income to abroad 70
(viii) Dividends 80
(ix) Consumption of fixed capital 50
(x) Social security contribution by employers 200
(xi) Mixed income 1,000

Solution:

GDP at FC = (i) + [(ii) + (x)] + [(iii) + (vi) + (viii)] + (xi) + (ix)
= 6000 + [1800 + 200] + [400 + 120 + 80] + 1000 + 50
= 6000 + 2000 + 600 + 1000 + 50 = Rs. 9650 cr.

NNP at MP = GDP at FC + (iv) – (ix) – (vii)
= 9650 + 100 – 50 – 70 = Rs.9630 cr.