Country A has Net Domestic Product (NDP) at factor cost of Rs. 6000 crore. Indirect taxes amount to Rs. 800 crore, subsidies Rs. 200 crore. Depreciation is Rs. 700 crore. Net factor income from abroad is Rs. 300 crore. Calculate the Gross National Product (GNP) at market price.

Step-by-step solution

1. Step 1: Compute GDP from NDP: GDP = NDP + Depreciation = 6000 + 700 = 6700 crore.
2. Step 2: Add net factor income from abroad to GDP to get GNP at factor cost: GNP(fc) = GDP + Net factor income = 6700 + 300 = 7000 crore.
3. Step 3: Convert to market price by adding indirect taxes and subtracting subsidies: GNP(mp) = GNP(fc) + Indirect taxes – Subsidies = 7000 + 800 – 200 = 7200 crore.
4. Step 4: Verify that all components have been included and units are consistent.
5. Step 5: Final answer: 7200 crore.

Concept tested: GNP at market price calculation

Published 7 October 2026 · How this solution was prepared and checked