Harish works in USA and sends money to his family in India included/excluded in National Income?
Is Harish works in USA and sends money to his family in India is included/excluded in National Income.
Anurag Pathak Changed status to publish December 8, 2023
No,
Harish works in USA and sends money to his family in India will not be included in the national income as it is a transfer payment.
Explanation:-
National Income only counts the factor income.
factor income is the income that is received against factor services that result in creating new production of goods and services.
As money sent by harish from the USA to his family in India is a one-sided payment and his family does not provide any factor services against it.
It will not be included in the national Income.
Such one-sided transfer payments are called transfer payments.
Anurag Pathak Changed status to publish December 8, 2023
