Will the following be included in domestic factor income of India? Give reasons for the answers.
(i) Profits earned by a foreign bank from its branches in India.
(ii) Scholarship given by government of India.
(iii) Profits earned by a resident of India from his company in Singapore.
(iv) Salaries received by Indians working in American Embassy in India.
(i) Yes, because profits are earned within domestic territory of India irrespective of ownership of the bank.
(ii) No, because scholarship is mere transfer incomes given without getting any productive service in return.
(iii) No, because profits are earned outside India's domestic territory.
(iv) No, because American Embassy in India is not a part of domestic territory of India (but a part of domestic territory of America).
