Is scholarship given to Indian students studying in India by a foreign company included/excluded in national income?
Is scholarship given to Indian students studying in India by a foreign company included/excluded in national income?
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No,
scholarship given to Indian students studying in India by a foreign company will not be included in the national income as it is a transfer payment.
Explanation:-
Students do not provide any factor services against the scholarship.
Thus it does not add to the current flow of goods and services in the economy.
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