Given the following data for Country X for the year 2022 (in billions of rupees): Net domestic product at factor cost = 800, Indirect taxes = 120, Subsidies = 30, Depreciation = 100. Compute the Gross National Product (GNP) at market price.

Step-by-step solution

1. Start with NDP at factor cost = Rs. 800 billion.
2. Add indirect taxes to convert factor cost to market price: 800 + 120 = Rs. 920 billion.
3. Subtract subsidies because they reduce market price: 920 – 30 = Rs. 890 billion (this is GDP at market price).
4. Add depreciation to obtain Gross National Product (GNP) at market price, assuming zero net factor income from abroad: 890 + 100 = Rs. 990 billion.
5. Thus GNP at market price = Rs. 990 billion.

Concept tested: GNP calculation from NDP

Published 28 September 2026 · How this solution was prepared and checked