Calculate National Income by Income and Output Method Value of output of primary sector ₹ 1,000
Calculate National Income by Income and Output Method.
| Particulars | ₹ in Crores |
| (i) Value of output of primary sector | 1,000 |
| (ii) Value of output of secondary sector | 800 |
| (iii) Value of output of tertiary sector | 600 |
| (iv) Intermediate consumption of Primary sector | 400 |
| (v) Intermediate consumption of Secondary sector | 300 |
| (vi) Intermediate consumption of Tertiary sector | 100 |
| (vii) Emoluments of employees | 500 |
| (viii) Rent | 40 |
| (ix) Consumption of fixed capital | 80 |
| (x) Indirect taxes | 30 |
| (xi) Net factor income from abroad | 10 |
| (xii) Subsidies | 10 |
| (xiii) Interest | 50 |
| (xiv) Rent, Rates, and Interest | 200 |
| (xv) Mixed Income | 800 |
Anurag Pathak Changed status to publish December 21, 2023
Solution:-
Calculation of National Income by Income Method
NDP at FC = Emoluments of employees + Mixed Income + Rent, Rates and Interest
NDP at FC = ₹ 500 + ₹ 800 + ₹ 200
NDP at FC = ₹ 1500
NNP at FC = NDP at FC + Net Factor Income from Abroad
NNP at FC = ₹ 1500 + ₹ 10
NNP at FC = ₹ 1510 Crores
Calculation of National Income by Output Method
Value of Output = Value of output of primary sector + Value of output of secondary sector + Value of output of tertiary sector
Value of Output = ₹ 1000 + ₹ 800 + ₹ 600
Value of Output = ₹ 2,400
Intermediate Consumption = Intermediate Consumption of Primary Sector + Intermediate Consumption of Secondary Sector + Intermediate Consumption of tertiary Sector
Intermediate Consumption = ₹ 400 + ₹ 300 + ₹ 100
Intermediate Consumption = ₹ 800
GDP at MP = Value of Output – Intermediate Consumption
GDP at MP = ₹ 2,400 – ₹ 800
GDP at MP = ₹ 1,600
NNP at FC = GDP at MP – Consumption of fixed capital + Net Factor income from abroad – Net indirect tax (Indirect taxes – Subsidies)
NNP at FC = ₹ 1,600 – ₹ 80 + ₹ 10 – (₹ 30 – ₹ 10)
NNP at FC = ₹ 1,510 Crores
Anurag Pathak Changed status to publish November 7, 2023
