Will the following be included in the national income of India ? Give reasons for your answer.
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
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(a) Financial assistance to flood victims:
No, this will not be included in the national income as it is a transfer income.
(b) Profits earned by the branches of a foreign bank in India:
No, the profits will not be a part of the national income of India. They are subtracted from the domestic income to get the national income.
(c) Salaries of Indians working in the American Embassy in India:
Yes, the salaries will be a part of the national income as they are factor income from abroad.
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