Giving reason, explain whether the following are included in domestic product of India:
(i) Profits earned by a branch of foreign bank in India.
(ii) Payment of salaries to its staff by an Embassy located in New Delhi.
(iii) Interest received by an Indian resident from firms abroad.
(i). Profits earned by a branch of foreign bank in India will be included in domestic income of India, as the profits are earned in domestic territory of India.
(ii) Payment of salaries to its staff by an Embassy located in New Delhi will not be included in domestic income of India, as it is the domestic territory of the country whose embassy it is.
(iii) Interest received by an Indian resident from firms abroad will not be included in domestic income of India, as it is factor income from abroad.