Suppose the GDP at market price of a country in a particular year was Rs 1,100 crores. Net Factor Income from Abroad was Rs 100 crores. The value of Indirect taxes – Subsidies was Rs 150 crores and National Income was Rs 850 crores. Calculate the aggregate value of depreciation.

Given –

National Income (NNPFC) = Rs.850 crores


GDPMP = Rs.1100 crores


Net factor income from abroad (NFIA) = Rs.100 crores


Net indirect taxes = Rs.150 crores


NNPFC = + Net factor income from abroad - Depreciation - Net indirect taxes


850 = 1100 + 100 - Depreciation – 150


850 = 1100 - 50 – Depreciation


850 = 1050 – Depreciation


Depreciation = 1050 - 850 = Rs.200 crores


So, depreciation is Rs.200 crores.


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