Question

Estimate the value of Net National Product at Factor Cost (NNP_FC), using the following information: 

S. No.	Items	Amount (in ₹ crores)
(i)	Household Consumption Expenditure	1,200
(ii)	Business Fixed Investment Expenditure	800
(iii)	Government Final Consumption Expenditure	500
(iv)	Excess of Imports over Exports	100
(v)	Net Indirect Taxes	150
(vi)	Change in Inventory	(−) 50
(vii)	Consumption of fixed capital	200
(viii)	Net factor Income from Abroad	80
(ix)	Public fixed investment	70

Answer 1

According to the expenditure method,

NNP_FC = (i) + (ii) + (iii) − (iv) + (vi) + (ix) − (v) − (vii) + (viii)

= 1,200 + 800 + 500 − 100 + (−) 50 + 70 − 150 − 200 + 80

= ₹ 2,150