Is Salaries paid by Indian Embassy situated at Japan to the local workers included/excluded in national income?
Is Salaries paid by Indian Embassy situated at Japan to the local workers included/excluded in national income?
Anurag Pathak Changed status to publish December 8, 2023
No,
Salaries paid by Indian Embassy situated at Japan to the local workers 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 Japan is within the economic territory of India. Income generated here by residents (Indian) and non-residents (Japanese) will be included in domestic income.
But, the salaries paid to Japanese local workers (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
Anurag Pathak Changed status to publish December 8, 2023
