Find NDPfc. Why is residential construction investment not considered?

Find NDPfc. Why is residential construction investment not considered? trvuu roeconomics (iv Indirect taxes (v) Subsidies (vi) Consumption expenditure Residential construction investment Solution: GDPMp 5000 Z,'ooo 1 ,ooo 2,000 20,000 6,000 = Gross domestic fixed investment + Inventory investment + Consumption expenditure = 10,000 crore + 5,000 crore + 20,000 crore = 35,000 crore NDPpc = GDPMp — Depreciation — Indirect taxes + Subsidies = 35,000 crore — 2,000 crore — 1,000 crore + 2,000 crore = 34,000 crore Ans. NDI'Fc 34,000 crore.

Dear Student
NDP(at factor cost) is already given in the solution.
Residential Construction is not included because it is the expenditure on building own house which is already a part of gross domestic fixed investment which is included while calculating GDP.


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