Question
How will you treat the following while estimating national income of India?
(i) Dividend received by an Indian from his investment in shares of a foreign country.
(ii) Money received by a family in India from relatives working aborad.
(iii) Interest received on loans given to a friend for purchasing a car.
Solution
(i) Dividend will be added to domestic income because it is factor income from abroad.
(ii) It will not be included in national income because it is remittance (transfer receipt) from relatives from abroad.
(iii) Interest will not be included in national income because amount of loan is meant for consumption purpose and not for production purpose.
