National income aggregates

From GDP we get the other national income aggregates:

• GNP = GDP + net factor income from abroad (NFIA). NFIA = factor income earned by Indians abroad − factor income earned by foreigners in India. (The profits of a foreign-owned factory in India are subtracted.)
• NNP (at market prices) = GNP − depreciation.
• National income = NNP at factor cost = NNP at market prices − (indirect taxes − subsidies).

Not all national income reaches households:

• Personal income (PI) = national income − undistributed profits − net interest paid by households − corporate tax + transfer payments (such as pensions and scholarships).
• Personal disposable income (PDI) = PI − personal tax payments − non-tax payments (such as fines). This is what households can actually spend or save.

Two more aggregates: national disposable income (NNP at market prices + other current transfers from abroad) and private income.

Example: GDP at market prices 2,000; NFIA −50; depreciation 150; indirect taxes minus subsidies 200. NNP at factor cost = 2,000 − 50 − 150 − 200 = 1,600.