With an increase in remittance money from abroad to India :
1. India’s Gross Domestic Product will increase
2. India’s Gross National Product will increase
3. India’s National Income will increase
Which of the above statement(s) is/are correct?
Explanation:
Remittance money is Net factor Income from Abroad (NFIA). GDP doesn’t include NFIA. GNP is sum of GDP and NFIA. It is basically sum of values of final goods and services produced by nationals of an economy whether within or outside the economic territory of the country. National income is Net National Product at factor cost and hence it also includes NFIA.