Expenditure method of calculating the National Income:
Y= C + I+ G + X -M
Where,
C- consumption expenditure
I - Investment expenditure
G- Government expenditure
X- expenditure done by foreign players ( or) export expenditure
M- expenditure done on foreign goods and services ( or) Import expenditure .
Income method of calculating the National lncome:
Y= W+ P+In+R
Where,
W- Wage received by labour
P- profit earned by entrepreneur
In- Interest earned from Capital
R- Rent received for Land
Product method/ value addition method of calculating the National Income:
Total value added = Value of final goods - value of intermediate goods
In India we use Expenditure method for calculating our National Income
GDP:
Gross Domestic Product is the total market value of final goods and services produced within the domestic territory of a nation. It is quantitative in nature.
GDP by expenditure method = C+I+G+(X-M)
India's Rank by:
GDP( nominal) = 6
GDP( PPP)= 3
india's base Year= 2011-12
GNP:
Gross National Product is the total value of goods and services produced and income received in a year by the domestic residents (citizens) of a country. It is both qualitative as well as quantitative in nature.
GNP= GDP + NFIA
NFIA= Net Factor Income from Abroad
NFIA= Income from non residential Indians - Income received by Foreigners residing in India.
Content Credits: LEO A. Vishnu Varthan
