Question

From the following data, calculate Gross National Product at Market Price by
(i) Income method (ii) Expenditure method

Answer 1

(i) Income method
`NDP_(FC)=COE+OS+MI`
`=COE+("Rent + Interest + Profit")+MI`
`=500+(100+150+350)+400=500+600+400`
`= Rs 1500` crore
`GNP_(MP)=NDP_(FC)+"Dep."+NFIA+NIT`
`=1500+120+(-20)+100=1500+120-20+100`
`= Rs 1700` crore
(ii) Expenditure mehod
`GDP_(MP)=PFCE+GFCE+GDCF+`Net exports
`=PFCE+GFCE+(NDCF+"Dep.")+`Net exports
`=900+450+(280+120)+(-30)=900+450+400-30`
`= Rs 1720` crore
`GNP_(MP)=GDP_(MP)+NFIA`
`=1720+(-20)= Rs 1700` crore