Is purchases of second hand machinery from abroad included/excluded in domestic income of India?
Is purchases of second hand machinery from abroad included/excluded in domestic income of India?
Anurag Pathak Changed status to publish December 9, 2023
No,
It will not be included in the domestic factor income as the value of imports are deducted while estimation of domesitc factor income of a country.
Explanation:-
Imports are deducted while calculating domestic income from the expenditure Method.
Domestic Income = Private Final consumption expenditure + Government Final consumption expenditure + net domestic capital formation + (Exports – Imports)
Anurag Pathak Changed status to publish December 9, 2023
