State the steps taken in the value added method of measuring national income.

Steps involved. Following steps are involved in estimating national income by Value added method.
(i)    Identify all the producing units located in the domestic economy and classify them into three industrial sectors such as primary, secondary and tertiary sectors on the basis of similarity of their activities. (Primary sector produces goods by exploiting natural resources like fishing mining, logging; secondary sector produces manufactured goods by transforming one type of commodity into another type of commodity like construction dectricting generation and tertiary sector produces services like educational, medical, banking etc.)
(ii)    Estimate net value added at FC by each producing unit. By deducting intermediate consumption, depreciation and net indirect taxes from value of output, we get net value added at FC.
(iii)    Estimate net value added of each industrial sector by summing up net value added at FC of all producing units falling in each industrial sector.
(iv)    Compute Domestic Income (NDP at FC) by adding up NVA at FC of all industrial sectors.
(v)    Estimate net factor income from abroad and add it to Domestic income for deriving National Income (NNP at FC).