National Income and Related aggregates

1. Value added method or Product method

2. Expenditure method
3. Income method

Created by Seema Singh

1.Depreciation

2.Net Factor Income from Abroad (NFIA)

= factor income from abroad - factor income to abroad.

3. Net Indirect Taxes =

= IT – Subsidy

Created by Seema Singh

1.GDPmp –Gross Domestic Product At market price
2.NDPmp – Net Domestic Product At market price
3.GNPmp – Gross National Product At market price
4.NNPmp – Net National Product At market price
5.GDPfc – Gross Domestic Product At factor cost
6.NDPfc – Net Domestic Product At factor cost
7.GNPfc – Gross National Product At factor cost
8.NNPfc – Net National Income At factor cost

Created by Seema Singh

 Gross - Net
Domestic - National
Product - Product
mp - fc
(Market price ) (factor cost)

Created by Seema Singh

GDP
mp
- NNP
fc
Base National Income
Created by Seema Singh
 Gross (+ dep ) - Net (- dep )
Domestic (- NFIA ) - National ( + NFIA)
Product - Product
mp (+ NIT ) - fc (- NIT)
(Market price ) (factor cost)

• Dep – Depreciation
• NFIA – Net Factor Income From Abroad
• NIT – Net indirect taxes ( Indirect tax - subsidy)
Created by Seema Singh
 The Product or Value Added Method

• Accumulated Inventory : Opening Stock

Deaccumulated Inventory : Closing stock

GDPmp or GVAmp - Value of Output – intermediate consumption

(Sale + change in stock ) – Intermediate consumption

Sales + (closing stock – opening stock) – Intermediate consumption

Note : Intermediate consumption - Purchase of Raw material

Depreciation – Consumption of fixed capital
Imports - Deducted
Exports - Added Created by Seema Singh
Q. 1 Find out Value of out put. ₹ 970 Cr
Items ₹ (in crores)
Sales 1000
Closing stock 50
Opening stock 80

Created by Seema Singh

Q. 2 Find out Intermediate consumption . ₹ 3030 Cr
Items ₹ (in crores)
Sales 1000
Closing stock 50
Opening stock 80
GPDmp 4000

Created by Seema Singh

Q. 3 Calculate GDP mp. ₹ 76000 Cr
Items ₹ (in crores)
Value of output 1,00,000
Depreciation 6000
Indirect taxes 6000
Intermediate consumption 24000
Subsidies 1000

Created by Seema Singh

Q. 4 Calculate GNP fc. ₹ 74000 Cr
Items ₹ (in crores)
Value of output 1,00,000
Depreciation 6000
Indirect taxes 6000
Intermediate consumption 24000
Subsidies 1000
Net factor income from abroad 3000

Created by Seema Singh

Q. 5 Calculate Net Value Added at Market Price from the following ₹ 45 Cr

Items ₹ (in crores)

Subsidies 1
Sales 100
Closing stock 10
Indirect taxes 5
Intermediate consumption 30
Opening stock 20
Consumption of fixed capital 15

Created by Seema Singh

Q. 6 Calculate Net Value Added at factor cost from the following ₹ 300 Cr

Items ₹ (in crores)

Consumption of raw materials 150
Value of output 600
Excise duty 60
Sales tax 60
Consumption of fixed capital 30

Created by Seema Singh

Q. 7 Calculate GNP fc from the following ₹ 27,710 Cr

Items ₹ (in crores)

NDP mp 24000
Depreciation 4000
Indirect taxes 120
Subsidies 30
Factor income from abroad 400
Factor income to abroad 600

Created by Seema Singh

 ₹ 410 Cr

Created by Seema Singh

 ₹ 360 lakh

Created by Seema Singh

 ₹ 400 lakh

Created by Seema Singh

 VO - ₹ 1000 lakh
NVAfc - ₹ 290 lakh

Created by Seema Singh

Q. 8 Calculate sales from the following ₹5000 CR
Items ₹ (in crores)
Subsidies 200
Opening Stock 100
Closing Stock 600
Intermediate consumption 3000
Consumption of Fixed capital 700
Profit 750
NDP fc 2000

Created by Seema Singh

 Type 2
Q. 9 Calculate GVA fc from the following All India 2012
₹ 27,500 Cr

Items ₹ (in crores)

Unit of output sold 2000
Price per unit of Output 20
Depreciation 2000
Change in stock (-)500
Intermediate consumption 15000
Subsidy 3000

Created by Seema Singh

Q. 10 Calculate GVA fc from the following All India 2012 ₹ 13200 Cr

Items ₹ (in crores)

Depreciation 700
Output sold (Units) 900
Price per unit of output 40
Closing Stock 1000
Opening Stock 800
Income Tax 200
Sales Tax 3000
Intermediate consumption 20000

Created by Seema Singh

Case 1:
(I) Intermediate Consumption =Rs. 1,200;
(ii) Imports =Rs 300
Intermediate Consumption = Rs 1,200
As imports are already included in the value of intermediate consumption.

Case 2:
i) Purchase of raw material from domestic firm =Rs 500;
(ii) Imports=Rs 100
Intermediate Consumption = Rs 500 + Rs 100 = 600
Imports are included as it is specifically mentioned that purchase of raw material is from
domestic firm.

Case 3:
(i) Purchase of raw material =Rs 1,000;
(ii) Imports Rs 200
Ans. Intermediate Consumption =Rs 1,000
Imports are not included as total purchase of raw material is given
Created by Seema Singh
Type 3

GVA = ₹ 300 lakh

Created by Seema Singh

 Type 4
VA of X = ₹ 165 lakhs
VA of Y = ₹ 175 lakhs
Q. 11 Calculate Value Added by firm X and Y and total Value added

Items ₹ (in lakhs)

i. Closing Stock of Firm X 20
ii. Closing Stock of firm Y 15
iii. Opening Stock of firm Y 10
iv. Opening stock of firm X 5
v. Sales by firm X 300
vi. Purchases by firm X from firm Y 100
vii. Purchases by firm Y from firm X 80
viii. Sales by firm y 250
ix. Import of raw material by firm X 50
x. Exports by firm Y 30

Created by Seema Singh

 VA of A = ₹ 30 lakhs
VA of B = ₹ 35 lakhs(Correction= )
Q. 12 Calculate Value Added by firm A and B and total value added

Items ₹ (in lakhs)

i. Purchase by firm B from firm A 40
ii. Sales by firm B 80
iii. Import by firm B 10
iv. Rent paid by firm B 5
v. Opening stock of firm B 15
vi. Closing stock of firm B 20
vii. Purchases by firm A from firm B 20
viii. Closing stock of firm A 20
ix. Opening stock of firm A 10

Created by Seema Singh

Created by Seema Singh
Created by Seema Singh
Created by Seema Singh
Created by Seema Singh
Created by Seema Singh