Sample Numerical Problems

1. Calculate GDP at Market price and National income cost using the information given
below.

Category Rs in Cr
i. Sales by industrial sector 20000
ii. Sales by primary sector 10000
iii. Net income from abroad 5000
iv. Opening stock of industrial sector 200
v. Closing stock of industrial sector 150
vi. Consumption of fixed capital 180
vii. Net exports by industrial sector -200
viii. Net exports by primary sector 100
ix. Purchase of raw material by primary sector 500
x. Purchase of raw material by industrial sector 600
xi. Indirect Taxes paid by industrial sector and 120
primary sector

Solution:

Step 1 calculate Gross Domestic Value added at market price by primary sector and industrial
sector separately.

Gross Domestic Value added at market price by primary sector.

= sales - Purchase of raw material by primary sector+ net exports

= 10000- 500+100

= ₹ 9600 crore.

Gross Domestic Value added at market price by industrial sector.

= sales + Change in the capital stock - Purchase of raw material by primary sector+ net exports

= 20000 + (105-200)- 600- 200

= 20000-50-600-200

= ₹ 19150 crore.
Step 2 calculate GDP at Market price by adding the value added from primary sector and
secondary sector.

GDP at Market price = Sum of value added by primary and industrial sector

= 9600 + 19150

GDP at Market price = ₹ 28750 crore

Step 3 calculate National Income.

National income = GDP at Market price- taxes- deprecation+ NFIA

=28750-120-180+5000

= ₹ 33,450 crore

2. Calculate NDP at factor cost and NI

Category Rs in Cr
i. Wages 2345
ii. Rent 234
iii. Interest paid by production units 123
iv. Corporate tax 200
v. Dividends 100
vi. Undistributed profits 20
vii. National Debt interest 24
viii. NFIA 241

NDP @FC = wages+ rent+ Interest paid by production units + Corporate tax+ Dividends+
Undistributed profits

= 2345+234+123+200+100+20
= ₹ 3022 crore

NI = NDP @FC + NFIA

= 3022+241

=₹ 3263 crore
--------- Solve it by self------------------------

Calculate GDP at Market price and National income cost using the information given below.

Category Rs in Cr
i. Sales by service sector 50000
ii. Net income from abroad 6500
iii. Consumption of fixed capital in service sector 5000
iv. Net exports by service sector 10000
v. Purchase of raw material by service sector 3860
vi. Indirect Taxes paid by service sector 4650
vii. Sales by primary sector 34586
viii. Consumption of fixed capital in primary sector 4367
ix. Exports by primary sector 276
x. Imports by primary sector 345
xi. Purchase of raw material by primary sector 256
xii. Indirect Taxes paid by primary sector 437

Calculate National income cost using the information given below.

Category Rs in Cr
i. Wages 2113
ii. Rent 3159
iii. Interest paid by production units 1561
iv. Corporate tax 3659
v. National Debt interest 3575
vi. NPS contribution by employees 2935
vii. PF contribution by employers 1638
vi. NPS contribution by employers 3880
vii. PF contribution by employees 3369

Calculate National income cost using the information given below.

Category Rs in Cr
i. private consumption expenditure 39499
ii. government expenditure 34897
iii. change in the capital stock 40762
iv. NIFA 29982
v. taxes 50724
vi. subsidies 20462
vii. imports 39695
vi. exports 30042