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DOMESTIC Income

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Vs
PREVIOUS Vs
PREVIOUS NATIONAL Income
FIRST
NATIONAL Income
FIRST

END
END

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1
Domestic Concept (Location)
Based on the production units located within economic
Based on the production units located within economic
territory operated both by resident and non-resident
territory operated both by resident and non-resident
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PREVIOUS
Resident
Resident
FIRST Of India
FIRST Of India
END
END

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Resident
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Resident
Of Japan
Of Japan
Tata Motors India's Profits In India

Honda Motors Japan profits In India

Domestic Income
2
Net Factor Income From Abroad
Indians Resident Working Abroad And Earn Factor Income Like

NEXT Rent Salary Profits Interest


PREVIOUS
PREVIOUS

FIRST
FIRST

END
END
Net Factor Income To Abroad
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HOME Foreign Resident Working In India And Earn Factor Income Like
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Net factor income from abroad is the difference between

Net factor income = Factor income Factor Income


from abroad from abroad TO Abroad
(NFIA) (FIFA) (FITA)
3
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PREVIOUS

FIRST
FIRST

END Factor income to Abroad (Less)


END

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Factor income from Abroad (ADD)

Domestic
National Income
Income
4
National Concept (Ownership)
Based on resident contribution to production both within and outside the
Based on resident contribution to production both within and outside the
economic territory.
economic territory.
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Factor income to
PREVIOUS Factor income to
PREVIOUS abroad
abroad
FIRST
FIRST

END
END

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EXIT Tata Motors India's Profits In India Honda Motors profits Japan In India
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Factor income
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Factor income
from abroad
from abroad

National Income

Tata Motors Profit’s In Japan


5
FIFA= 60
FIFA= 60
FIFA= 70
FIFA= 70
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PREVIOUS
PREVIOUS

FIRST
FIRST

END
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EXIT FITA= 50
EXIT FITA= 50

FITA= 40
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FITA= 40
National = Domestic + NFIA
Income Income
National = 2000 + 130-90
Income
National National Income
DOMESTIC = 2040
INCOME= 2000
Income = 2040
6
Calculation of
national income from
Domestic income
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PREVIOUS
National income = Domestic income + NFIA
FIRST

END Various cases

HOME Net Factor income from Abroad 50 Add


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Net Factor income from Abroad
- 30 Less
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Net Factor income to Abroad


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-20 Add

Net Factor income to Abroad 10 Less

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