Calculate Net Domestic Product at Factor Cost Private Final consumption expenditure ₹ 8,000
Calculate Net Domestic Product at Factor Cost:
| Particulars | ₹ Crore |
| (i) Private final Consumption expenditure | 8,000 |
| (ii) Government Final consumption expenditure | 1,000 |
| (iii) Exports | 70 |
| (iv) Imports | 120 |
| (v) Consumption of fixed Capital | 60 |
| (vi) Gross Domestic Fixed Capital formation | 500 |
| (vii) Change in Stock | 100 |
| (viii) Factor Income to abroad | 40 |
| (viii) Factor Income from abroad | 90 |
| (x) Indirect Taxes | 700 |
| (xi) Subsidies | 50 |
| (xii) Net Current transfers to abroad | (-) 30 |
Ans:- Net Domestic Product at Factor Cost = ₹ 8,840 Crore
Anurag Pathak Changed status to publish December 21, 2023
Solution:-
Calculation of Net Domestic Product at Factor Cost:
GDP at MP = Private Final Consumption Capital + Government Final Consumption Capital + Gross Domestic Capital Formation (Gross Domestic Fixed Capital Formation + Change in Stock) + Net Exports (Exports – Imports)
GDP at MP = ₹ 8,000 + ₹ 1,000 + (₹ 500 + ₹ 100) + (70 – 120)
GDP at MP = ₹ 9550
NDP at FC = GDP at MP – Consumption of fixed Capital – Net Indirect Taxes (Indirect Tax – Subsidies)
NDP at FC = ₹ 9,550 – 60 – (700 – 50)
NDP at FC = ₹ 8,840 Crore
Anurag Pathak Changed status to publish November 7, 2023
