Growth and development

Indian Economy (Easy)

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Who among the above contributes to India’s GNP?

Mr. A is an Indian National, working in Canada and earns Rs 70 Lakh per annum and sends it to his parents in India.

Mr. B is a Citizen of the United States working in India and sends Rs 20 Lakh per annum to the United States.

Ms. C is an Indian National working in Delhi and earns Rs 10 Lakh per annum and sends it to her parents who are in Malaysia.

Both (a) and (c)

Explanation:

Gross National Product (GNP) is an estimate of the total value of all the final products and services turned out in a given period by the means of production owned by a country's nationals.

GNP is commonly calculated by taking the sum of personal consumption expenditures, private domestic investment, government expenditure, net exports and any income earned by nationals from overseas investments, minus income earned within the domestic economy by foreign national. Net exports represent the difference between what a country exports minus any imports of goods and services.
Mr. A and C are Indian nationals. So their income is included in India's GNP irrespective of their location of work. Whereas Mr. B is not a citizen of India. So his income is not included in GNP but is included in India's GDP as he works within the domestic territory of India.

• Hence option (d) is the correct answer.

By: abhimanu admin

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