Is salaries paid to Russians working in Indian Embassy in Russia?
Is salaries paid to Russians working in Indian Embassy in Russia included/excluded in national income?
No,
Salaries paid to Russians working in Indian Embassy in Russia will not be included in the national income as it is a part of the factor income paid abroad to non-residents. It is subtracted from domestic income to arrive at national income.
Explanation:-
Indian Embassy in Russia is within the economic territory of India. Income generated here by residents (Indian) and non-residents (Russian) will be included in domestic income.
But, the salaries paid to Russians (non-residents) will be deducted as factor income to abroad from domestic income to arrive at national income.
National Income = Domestic Income + Factor income from abroad – Factor income to abroad