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Question : 3
Total: 4
Will the following be included in the national income of India? Give reasons for your answer.
(a) Financial assistance to flood victims
(b) Profits earned by the branches of a foreign bank in India
(c) Salaries of Indians working in the American Embassy in India.
(a) Financial assistance to flood victims
(b) Profits earned by the branches of a foreign bank in India
(c) Salaries of Indians working in the American Embassy in India.
Solution:
(a) Financial assistance to flood victims : This will not be included in the national income since it is a part of transfer payment.
(b) Profits earned by the branches of a foreign bank in India: This is not to be included in the national income of India since it is earned by a foreign bank.
(c) Salaries of Indians working in the American Embassy in India : It is included in national income of India since Indian employees of American embassy are the normal residents of India.
(b) Profits earned by the branches of a foreign bank in India: This is not to be included in the national income of India since it is earned by a foreign bank.
(c) Salaries of Indians working in the American Embassy in India : It is included in national income of India since Indian employees of American embassy are the normal residents of India.
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