- How will you treat the following while estimating National Income of India? Give reasons for your
answer.
(i) Dividend received by a foreigner from investment in shares of an Indian company.
(ii) Profits earned by a branch of an Indian bank in Canada.
(iii) Scholarship given to Indian students studying in India by a foreign company.
(i) Dividend received by a foreigner from investment in shares of an Indian company is included in National Income of India as a negative component, because it is a part of net factor income paid to rest of the world.
(ii) Profits earned by a branch of an Indian bank in Canada is included in National Income of India since, it is a part of net factor income from rest of the world.
(iii) Scholarship given to Indian students studying in India by a foreign company is not included in National Income of India because it is a kind of transfer income.