1

DETERMINATION OF
NATIONAL INCOME

Unit 1 : National Income Computing

Definition

National Income is defined as the net value of all economic goods and services
produced within the domestic territory of a country in an accounting year plus the
net factor income from abroad.
According to the Central Statistical Organisation (CSO) ‘National income is the sum
total of factor incomes generated by the normal residents of a country in the form of
wages, rent , interest and profit in an accounting year’.

Usefulness and significance

1) Evaluating the performance of Economy.

2) Indicator of demand pattern of consumer which is useful for Industries.
3) Economic welfare depends on National Income.
4) It helps Government to make sector wise development programme and policies.
5) It helps Government in assessment and selection of economic policies.
6) Provide a guide to make policy for growth and inflation.
7) Make projections for future development trend of the economy.

Concepts

The basic concepts and definitions of the terms used in national income
largely follow those given in the UN System of National Accounts (SNA)
developed by United Nations.
According to SNA , National income accounts have three sides:
 a product side
 an expenditure side and
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 an income side.
The product side measures production based on concept of value added.
The expenditure side looks at the final sales of goods and services.
The Income side measures the distribution of the proceeds from sales to
different factors of production.
Thus, national income is the sum total of all the incomes accruing over a
specified period to the residents of a country and consists of wages, salaries,
profits, rent and interest.
On the product side there are two widely reported measures of overall
production namely,
 Gross Domestic Product (GDP)
 Gross National Product (GNP).

Gross Domestic Product (GDPMP)

 Gross domestic product (GDP) is a measure of the market value of all

final economic goods and services, gross of depreciation, produced
within the domestic territory of a country during a given time period.
 It is the sum total of ‘value added’ by all producing units in the domestic
territory and includes value added by current production by foreign
residents or foreign-owned firms.
 “Gross” implies that GDP is measured gross of depreciation. “Domestic”
means domestic territory or the resident production units
(ie, one which has pre dominant economic interest in the nation ).
 However, GDP excludes transfer payments, financial transactions and
non- reported output generated through illegal transactions such as
narcotics and gambling. Monetary transactions like borrowings,
investments etc do not affect the production of goods/services and
hence are not included in GDP calculation.
 GDP is in fact Gross Domestic Product at market prices (GDP MP) because
the value of goods and services is evaluated at market prices
 The value of only final goods and services or only the value added by the
production process would be included in GDP.
 By ‘value added’ means the difference between value of output and
purchase of intermediate goods.
 Intermediate goods used to produce other goods rather than being sold
to final purchasers are not counted as it would involve double counting.
 Final goods are the goods that are not used as inputs in the process of
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production and are sold to the consumer directly.

 Gross Domestic Product (GDP) is a measure of production activity. It
covers all production activities recognized by SNA called the “production
boundary”. Production of agriculture , forestry and fishing which are
used for own consumption is also included in the production boundary.
 Economic activities, as distinguished from non-economic activities,
include all human activities which create goods and services that are
exchanged in a market and valued at market price. Non-economic
activities are those which produce goods and services, but since these
are not exchanged in a market transaction they do not command any
market value; for e.g. hobbies, housekeeping

Nominal GDP vs Real GDP: GDP at Current and Constant prices

Nominal GDP or GDP at Current Price is the sum total of economic output
produced in a year valued at current market price. It does not take inflation into
account . That means if prices rice, GDP measured at market price will also rise
without any real increase in physical output, therefore economic growth can’t
be analyzed easily.
Real GDP or GDP at Constant Price is the sum total of economic output produced in a
year valued at pre-determined base market price. Since it is inflation adjusted, it acts
as a good measure of economic growth as it shows the true picture of the change in
production of an economy.
In India, we rake price of year 2011-12 as base for computing the Real GDP.

GDP DEFLATOR

The GDP Deflator is the ratio of nominal GDP in a given year to real GDP of that year.
It is used to “deflate” or take away the effect of inflation from nominal GDP.

GDP Deflator = (Nominal GDP/ Real GDP) * 100

Using the GDP Deflator, the inflation rate between two consecutive years can be
computed.

Inflation rate in year 2 = [(GDP Deflator of year 2 – GDP Deflator of year 1)/
GDP Deflator of year 1] * 100

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Gross National Product (GNP)

Gross National Product (GNP) is a measure of the market value of all final
economic goods and services, gross of depreciation, produced within the domestic
territory of a country by normal residents during an accounting year including net
factor incomes from abroad.

GNP MP = GDP MP + Net Factor Income from Abroad

or
GDP MP = GNP MP – Net Factor Income from Abroad

NFIA is the difference between the aggregate amount that our country’s citizens and
companies earn abroad, and the aggregate amount that foreign citizens and overseas
companies earn in our country.

If NFIA is positive, then GNPmp would be greater than GDPmp.

Net Domestic Product at market prices (NDP MP)

Net domestic product at market prices (NDP MP) is a measure of the market value
of all final economic goods and services, produced within the domestic territory of a
country by its normal residents and non residents during an accounting year less
depreciation.

NDP MP = GDP MP – Depreciation

OR
NDP MP = NNP MP – Net Factor Income from Abroad

Net National Product at Market Prices (NNP MP)

Net National Product at Market Prices (NNP MP) is a measure of the market value of
all final economic goods and services, produced by normal residents within the
domestic territory of a country including Net Factor Income from Abroad during an
accounting year excluding depreciation.

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NNP MP = GNP MP – Depreciation

OR
NNP MP = NDP MP + Net Factor Income from Abroad
OR
NNP MP = GDP MP + Net Factor Income from Abroad – Depreciation

Gross Domestic Product at Factor Cost (GDPfc)

The production and income approach measure the domestic product as the cost paid
to the factors of production. Therefore, it is known as ‘domestic product at factor
cost’. GDP at factor cost is called so because it represents the total cost of factors viz.
labor, capital and entrepreneurship.
We need to clearly understand the difference between the concepts: ‘market price’
and ‘factor cost.’ The market value of the goods and services will include indirect
taxes which are:
product taxes like excise duties, GST etc., levied by the government on
goods and services, and
 taxes on production, such as, factory license fee, taxes to be paid to the
local authorities, pollution tax etc. which are unrelated to the quantum of
production.

The Government also gives subsidies to many goods and services. The market prices
will be lower by the amount of subsidies on products and production which the
Government pays to the producer.

Market Price = Factor Cost + Net Indirect Taxes

Or
Factor Cost = Market Price – Net Indirect Taxes
Net Indirect Taxes = Indirect Taxes - Subsidies

GDPFC = GDP MP – Net Indirect Taxes

i.e. GDP MP – ( indirect taxes –subsidies )
i.e. GDP MP – indirect taxes + subsidies

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Net Domestic Product at Factor Cost (NDPFC)

Net Domestic Product at Factor Cost (NDPFC) is defined as the total factor incomes
earned by the factors of production. In other words, it is sum of domestic factor
incomes or domestic income net of depreciation.

NDPFC = NDP MP – Indirect Taxes+ Subsidies

Net National Product at Factor Cost (NNPFC) or National Income

National Income is defined as the factor income accruing to the normal residents of
the country during a year. It is the sum of domestic factor income and net factor
income from abroad. In other words, national income is the value of factor income
generated within the country plus factor income from abroad in an accounting year.
NNPFC = National Income = FID (factor income earned in domestic territory) + NFIA.
OR
NNPFC = NDP FC + NFIA
OR
NNPFC = NNP MP + subsidies – Indirect Taxes

Per Capita Income

The GDP per capita is a measure of a country's economic output per person. It serves
as an indicator of the standard of living of a country.
Ie GDP / population

Personal Income

While national income is income earned by factors of production , Personal Income is

the income received by the household sector including Non-Profit Institutions
serving households. That is, National income is a measure of Income earned and
Personal income is a measure of actual current income receipts of persons.
Examples of this include transfer payments such as retirement benefits, scholarships,
flood compensation etc.

An important point to remember is that national income is not the sum of personal
incomes because personal income includes these transfer payments which are
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excluded from national income.

Personal income excludes retained earnings, indirect taxes , corporate taxes ,

contribution by employers towards social security etc.

Disposable Personal Income (DI)

Disposable personal income is a measure of amount of the money in the hands of

the individuals that is available for their consumption or savings. Disposable
personal income is derived from personal income by subtracting the direct taxes paid
by individuals and other compulsory payments made to the government

DI = PI - Personal Income Taxes

Net and Gross National Disposable Income:

NNDI = Net National Income + other net current transfers from rest of the world
GNDI = NNDI + Consumption of Fixed Capital

Value Added Method or Product Method

Product Method or Value Added Method is also called Industrial Origin Method or
Net Output Method. National income by value added method is the sum total of net
value added at factor cost across all producing units of the economy.
This method involves the following steps:

Step 1.
Identifying the producing enterprises and classifying them into different sectors
according to the nature of their activities.
All the producing enterprises are broadly classified into three main sectors namely:
(i) Primary sector ( fishing, agriculture, mining) ,
(ii) Secondary sector( manufacturing) and

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(iii) Tertiary sector or service sector (banking, insurance)

Step 2.
Estimating the gross value added (GVA MP) by each producing enterprise

Gross Value Added = Sales + closing stock – opening stock – intermediate

consumption
OR
GVA MP = sales + change in stock – intermediate consumption
NVA MP = GVA MP – Depreciation
NVA FC = NVA MP + Subsidies – Indirect Taxes

NNP FC = NVA FC + NFIA = NATIONAL INCOME

Income Method

Under Factor Income Method, also called Factor Payment Method or Distributed
Share Method, national income is calculated by summation of factor incomes paid
out by all production units within the domestic territory of a country as wages and
salaries, rent, interest, and profit. By definition, it includes factor payments to both
residents and non- residents.

NDP FC = Sum of factor incomes paid out by all production units within the domestic
territory of a country
= Operating surplus + Compensation to employees + Mixed Income of
selfemployed

Note, operating surplus includes Rent, savings, Interest, Profits, dividend etc

(Transfer incomes are excluded from national income)

National Income, NNP FC = NDP FC +NFIA

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Expenditure Method

In the expenditure approach, (also called Income Disposal Approach), National

Income is the aggregate final expenditure in an economy during an accounting year.
In the expenditure approach to measuring GDP, we add up the value of the goods
and services purchased by each type of final user as mentioned below.

 Private Final Consumption Expenditure: The volume of final sales of goods and
services to consumer households and nonprofit institutions serving households,
acquired for consumption (not for use in production) are multiplied by market
prices and then summation is done. ( C )

 Government Final Consumption Expenditure : Collective services provided by the

governments such as defence, education, healthcare etc which are not sold in
the market, the only way they can be valued in money terms is by adding up the
money spent by the government in the production of these services. ( G )

 Gross Domestic Capital formation : includes final expenditure on machinery and

equipment, expenditure on construction, expenditure on changes in inventories,
and expenditure on the acquisition of valuables such as, jewelry and works of art.
(I)

 Net Exports : It is the difference between exports and imports of a country

during the accounting year. It can be positive or negative.( X-M )

GDP MP = PFCE + GDCF + GFCE + NE

GDP MP = C + I + G + X-M

NNP FC = GDP MP – Depreciation + NFIA + subsidies – Indirect Taxes

GDP of a country cannot be fully taken as an index of welfare of

people in a country, because

GDP measures ignore the following :

1 Income distributions and, therefore, GDP per capita is a completely

inadequate measure of welfare. Countries may have significantly
different income distributions and, consequently, different levels of
overall well-being for the same level of per capita income.

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2 Quality improvements in systems and processes due to technological as

well as managerial innovations which reflect true growth in output from
year to year.
3 Productions hidden from government authorities, either because those
engaged in it are evading taxes or because it is illegal (drugs, gambling
etc).
4 Economic ’bads’ for example: crime, pollution, traffic congestion etc
which make us worse off.
5 The volunteer work and services rendered without remuneration
undertaken in the economy, even though such work can contribute to
social well-being as much as paid work.
6 The distinction between production that makes us better off and
production that only prevents us from becoming worse off, for e.g.
defence expenditures such as on police protection. Increased
expenditure on police due to increase in crimes may increase GDP but
these expenses only prevent us from becoming worse off. However, no
reflection is made in national income of the negative impacts of higher
crime rates.

Limitation and Challenges of National Income Computation

1) lack of an agreed definition of national income,

2) accurate distinction between final goods and intermediate goods is difficult
3) issue of transfer payments,
4) services of durable goods
5) Inadequacy of data and lack of reliability of available data
6) presence of non-monetised sector
7) production for self-consumption,
8) absence of recording of incomes due to illiteracy and ignorance

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Questions for practice :

1) Compute National Income by Income Approach :

Particulars Amount ( Rs in Lakhs)

Compensation to employees 1200

NFIA -20
Net Indirect Taxes 120
Profit 800
Rent 400
Interest 620
Mixed Income 700

(ANS : NNPfc = 3700 lakhs )

2) Compute National Income and GDPmp using the following data

Particulars Amount ( Rs in Lakhs)

Mixed Income 1850

Consumption of Fixed Capital 120
Indirect Taxes 260
Rent, Interest & Profit 1290
Subsidies 30
Employers contribution to social security schemes 30
NFIA -10
Wages and salaries 700

( ANS : NNPfc = 3860 lakhs ; GDPmp = 4220 lakhs )

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3) Calculate Gross Fixed Capital Formation

Particulars Amount ( Rs in Lakhs)

PFCE 1000
GFCE 500
NE -50
NFIA 20
GDPMP 2500
Change in Stock -100
(ANS : GFCF = 1150 lakhs )

4) Calculate National Income by Income method and Expenditure method

Particulars Amount ( Rs in Lakhs)

Salaries and Wages in cash 1997

Transfer payment by Govt 25
Rent 132
Indirect Taxes 200
Subsidies 89
Compensation of workers in kind 95
Depreciation 81
Net increase in Factor income from the rest
of the world 52
Interest 92
Govt expenditure on goods and services 574
Personal consumption expenditure 1805
Corporate profit tax 10
Income of self-employed 264
Undistributed Corporate profit 26
Dividend 201
Export 900
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Addition to stock 7
Social security contribution by employer 54
Imports 323
Gross fixed investments 100
(ANS : NNPfc = 2923 lakhs )

5) Calculate the Value added by Firm A and Firm B

Particulars Amount ( Rs in Lakhs)

Firm A
Domestic Sales 4000
Export 1000
Purchases 200

Firm B
Sales 2940
Purchases 1300
(ANS : GVA = 4800 lakhs)

6 ) Calculate Value Added by Firm A and Firm B and GDPmp and NVAFC

Particulars Amount ( Rs in Lakhs)

Sales by Firm B to Govt 100
Tot Sales by Firm A 500
Sales by Firm B to household 350
Change in Stock of Firm A 20
Closing stock of Firm B 40
Opening stock of Firm B 30
Purchases by Firm A 320
Indirect Taxes paid by both the Firms 75

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Consumption of Fixed capital 120

Sales by Firm A to Firm B 200
(ANS : GVA (firm A) = 200 lakhs ; GVA (firm B) = 260 lakhs ; GDPmp = 460 lakhs ;
NDPfc = 265 lakhs )

7) From the following data calculate GDPFC and Factor Income to Abroad (FTA)

Particulars Amount ( Rs in Lakhs)

GDCF 600
Interest 200
GNPmp 2800
Rent 300
Compensation to employees 1600
Profit 400
Dividend 150
Factor income from abroad 50
Change in stock 100
Net Indirect taxes 240
Net fixed capital formation 400
Net export -30
(ANS : GDPfc = 2600 lakhs ; FTA = 90 lakhs )

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8) From the following data , compute GNPmp using value added method ( 2018 may)

Particulars Amount ( Rs in Crores)

Value of output in Secondary
sector 1000
Intermediate consumption
In Primary sector 300
Value of output in Tertiary
Sector 3000
Intermediate consumption
In Secondary sector 400
NFIA (100)
Value of output in Primary
sector 800
Intermediate consumption
In Tertiary sector 900

(ANS : GNPmp = 3100 Crores )

9) Compute GNP at factor cost and NDP at market price using expenditure method
from the following data . ( 2019 may)
Particulars Amount( Rs in Crores)
Personal consumption expenditure 2900
Imports 300
Gross public investment 500
Consumption of fixed capital 60
Exports 200
Inventory investment 170
Government purchase of goods
And services 1100
Gross residential construction investment 450

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NFIA (30)
Gross business fixed investment 410
Subsidies 80
(ANS : GNPfc = 5480 Crores ; NDPmp = 5370 Crores )

10) The Nominal and Real GDPs in a particular year are Rs 3000 and Rs 4000 Crores
respectively. Calculate GDP Deflator and comment on the levels of prices of the year
in comparison with the base year.
11) Find nominal GDP if real GDP = 450 and price index = 120
12) Suppose nominal GDP of a country in year 2010 is given at Rs 600 Crores and
price index is 100. If the nominal GDP increases to Rs 1200 Crores in year 2018 and
price index rises to 110, find out real GDP ?
13) From the following data, compute NNPFC, NNPMP, GNPMP and GDPMP
Particulars Rs in Crores
Operating surplus 2000
Mixed income of self-employed 1100
Rent 550
Profit 800
Net indirect tax 450
Consumption of fixed capital 400
Net factor income from abroad -50
Compensation of employees 1000

14) From the following data, estimate National Income and Personal Income.
Particulars RS. in Crores
Net national product at market price 1891
Income from property and entrepreneurship accruing
to government administrative departments 45
Indirect taxes 175
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Subsidies 30
Saving of non-departmental enterprises 10
Interest on National debt 15
Current transfers from government 35
Current transfers from rent rest of the world 20
Saving of private corporate sector 25
Corporate profit tax 25

15) Calculate the aggregate value of depreciation when the GDP at market price of a
country in a particular year was Rs 1,100 Crors. Net Factor Income from Abroad was
Rs 100 Crores. The value of Indirect taxes – Subsidies was Rs. 150 Crores ana National
Income was Rs 850 Crores.

16) On basis of following information, calculate NNP at market price and Disposible
personal income
Particulars Rs. in Crores
NDP at factor cost 14900
Income from domestic product accruing to government 150
Interest on National debt 170
Transfer payment by government 60
Net private donation from abroad 30
Net factor income from abroad 80
Indirect taxes 335
Direct taxes 100
Subsidies 265
Taxes on corporate profits 222
Undistributed profits of corporations 105

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17) Calculate National Income by Value Added Method with the help of following
data
Particulars Rs. in Crores
Sales 700
Opening stock 500
Intermediate Consumption 350
Closing stock 400
Net factor income from abroad 30
Depreciation 150
Excise Tax 110
Subsidies 50

18) Calculate the Operating Surplus with the help of following data-
Particulars Rs. in Crores
Sales 4000
Compensation of employees 800
Intermediate consumption 600
Rent 400
Interest 300
Net indirect tax 500
Consumption of fixed capital 200
Mixed Income 400

19) Calculate NNPFC by expenditure method with the help of following information-
Particulars Rs. in Crores
Private final consumption expenditure 10
Net import 20
Public final consumption expenditure 5
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Gross domestic fixed capital formation 350

Depreciation 30
Subsidy 100
Income paid to abroad 20
Change in stock 30
Net acquisition of valuables 10

HOMEWORK QUESTIONS

1) Calculate National Income by Income method and Expenditure method, also

find GNPmp

Particulars Amount ( Rs in Lakhs)

GFCE 250
Change in stock 65
NDCF 150
Interest 90
Profit 210
Corporate tax 50
Rent 100
Factor income from abroad 20
Indirect Taxes 55
Factor income to abroad 40
Export 60
Subsidies 25
Imports 80
Consumption of fixed capital 20
PFCE 500
Compensation to employees 450
Value of rent free accommodation to employees 40

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(ANS : National income = 830 lakhs , GNPmp =880 lakhs)

2) Compute GNPmp using the following data

Particulars Amount ( Rs in Lakhs)

Net Indirect taxes 900

Depreciation 400
NFIA -20
Rent 1000
Dividend 500
Mixed Income 200
Savings of pvt Corporate Sector 400
Interest 200
Compensation to employees 100

(ANS : GNPmp = 3680 lakhs )

3) Calculate Operating Surplus

Particulars Amount ( Rs in Lakhs)
Net Indirect Taxes 150
Depreciation 50
Net tot income from rest of the world 155
GDP mp 1050
Mixed Income 500
Compensation to employees 110
(ANS : Operating surplus = 240 lakhs)

4) Compute National Income

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Particulars Amount ( Rs in Lakhs)

Consumption 750
Investment 250
Government Purchases 100
Exports 100
Imports 200
(ANS : National Income = 1000 lakhs)

5) Calculate Gross Fixed Capital Formation

Particulars Amount ( Rs in Lakhs)
PFCE 1000
GFCE 500
NE -50
NFIA 20
GDPMP 2500
Change in Stock -100
(ANS : GFCF = 1150 lakhs)

6) Calculate GNPmp and NNPfc

Particulars Amount ( Rs in Lakhs)
GFCE 24
Net Indirect Taxes 23
Consumption of Fixed Capital 22
GDCF 24
X–M -4
PFCE 161
NFIA -1
Net increase in Stock 3
(ANS : GNPmp = 204 lakhs ; NNPfc = 159 lakhs )
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7) Find GDPmp and derive National Income

Particulars Amount ( Rs in Lakhs)
Inventory Investment 100
Exports 200
Indirect Taxes 100
NFIA -50
PFCE 3500
Gross Residential Construction Investment 300
Depreciation 50
Imports 100
GFCE 1000
Gross Public Investment 200
Gross business fixed Investment 300

(ANS : GDPmp = 5500 lakhs ; NNPfc = 5300 lakhs )

8) Find GDPmp and GNPmp from the following data using income method and
expenditure method
Particulars Amount ( Rs in Lakhs
Personal consumption 7314
Depreciation 800
Wages 6508
Indirect Business Taxes 1000
Interest 1060
Domestic investment 1442
Government expenditure 2196
Rental income 34
Corporate profits 682
Exports 1346
NFIA 40
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Mixed Income 806

Imports 1408

(ANS : GDPmp = 10890 lakhs ; GNPmp = 10930 lakhs)

9) Calculate GVAfc
Particulars Amount ( Rs in Lakhs)
Sales 500
Opening Stock 30
Closing stock 20
Purchase of intermediate products 300
Purchase of machinery 150
Subsidy 40
(ANS : GVA fc = 230 lakhs )

10) Find out GNPMP using Value Added Method

Particulars Amount ( Rs in Lakhs)
Value of output in Primary Sector 500
NFIA -20
Value of output in Tertiary Sector 700
Intermediate Consumption in Secondary Sector 400
Value of output in Secondary Sector 900
Government Transfer Payments 600
Intermediate Consumption in Tertiary Sector 300
Intermediate Consumption in Primary Sector 250
(ANS : GNP mp = 1130 lakhs )

11 ) Calculate GDPmp and National Income

Particulars Amount ( Rs in Lakhs)

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Value of output in Primary Sector 1600

Value of output in Secondary Sector 400
Value of output in Tertiary Sector 600
Indirect Taxes of all Sectors 50
Subsidy by all Sectors 20
Intermediate Consumption in Primary Sector 800
Intermediate Consumption in Secondary Sector 400
Intermediate Consumption in Tertiary Sector 200
Depreciation of all sectors 80
Factor income received from rest of the world 10
Factor income paid to non residents 20

(ANS : GDP mp = 1200 lakhs ; NNPfc = 1080 lakhs )

12) Calculate GDPmp by Product Method and Income Method.

Particulars Amount ( Rs in Lakhs)

Intermediate Consumption in Primary Sector 500

Intermediate Consumption in Secondary Sector 400
Intermediate Consumption in Tertiary Sector 300
Value of output in Primary Sector 1000
Value of output in Secondary Sector 900
Value of output in Tertiary Sector 700
Rent 10
Compensation of employees 400
Mixed income 650
Operating surplus 300
NFIA -20
Interest 5
Consumption of fixed capital 30
Net Indirect Tax 20
(ANS : GDPmp = 1400 lakhs )

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13) Calculate National Income by Income method, Output Method and

Expenditure Method
Particulars Amount ( Rs in Lakhs)
Value of output in Primary Sector 1000
Value of output in Secondary Sector 400
Raw Material purchased by Primary Sector 500
Raw Material purchased by Other Sectors 300
Factor Income received from rest of the world 10
Factor income paid to rest of the world 15
Depreciation 55
Indirect taxes 100
Subsidies 20
Mixed income 200
Compensation of employees 170
Rent 40
Interest 30
Profit 25
PFCE 200
GFCE 300
Export 80
Import 30
GFCF 40
Change in Stock 10

(ANS : NNPfc = 460 lakhs )

14) Calculate GDPmp , GNPmp , GDPfc and Per Capita Gross National Income@FC
Particulars Amount ( Rs in Lakhs)

Consumption Expenditure 110

Investment 20
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Govt Expenditure 70
Export 20
Import 50
Net Property Income from abroad 10
Transfer Payment 20
Indirect Taxes 30
Population 0.5
(ANS : GDP mp = 150 lakhs ; GNP mp = 160 lakhs GDP fc = 120 lakhs ; per-capita
GNPfc = 260)

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