Question

From the following data calculate National Income by output method and Income method :

Item	(₹ in crores)
(i)  Value of output
(ii)  Value of intermediate consumption	2500
(iii)  Subsidies	1300
(iv)  Rent	40
(v)  Employer's contribution to social security	110
(vi)  Profit	30
(vii)  Wages and salaries	340
(viii)  Interest	10
(ix)  Mixed income of self-employed	360
(x)  Indirect tax	180
(xi)  NFIA	(-)30
(xii)  Consumption of fixed capital	160

Answer 1

GDP_MP = Value of output – Int. consumption

= 2500 – 1300

= 1200

NNP_FC = GDP – Depreciation + NFIA – NDOT

= 1200 – 160 – (-30) – (180 - 40)

= 1200 – 160 + 30 – 180 + 40 NI

= National Income = 930 Cr.