. How will you treat the following while estimating domestic product of India?
(a) Rent received by resident Indian from his property in Singapore.
(b) Salaries if Indians working in Japanese Embassy in India
(c) Profits earned by branch of American bank in India.
(d) Salaries paid to Koreans working in the Indian embassy in Korea
please help me guyzz
Answers
Hey Mate !
(a).No, it will not be included in domestic product as this income is earned outside the economic territory of India.
(b).It will not be included in domestic product of India as embassy of Japan is not a part of economic territory of India.
(c).Yes, it is included as part of domestic product since the branch of American bank is located within the economic territory of India.
(d).Yes, it will be part of domestic product of India because the income is earned within the economic territory of India. Indian embassy in Korea is a part of economic territory of India.
Hope it helps u
#Keep smiling :)
The following will be treated as such:
(a)No. As the property is in Singapore which is outside the territory of India, it will not be included while calculating the domestic product of India.
(b)No. This is because the Japanese Embassy is technically a part of Japan and is under the jurisdiction of Japan (Vienna Convention, 1961).
(c) Yes. This is because the branch of the bank is on the domestic territory of India.
(d)Yes. This is because the Indian Embassy is technically a part of India and is under the jurisdiction of India (Vienna Convention, 1961).
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