Q. Consider the following statements:

1. India’s GDP is more than its GNP.
2. Net Factor Income from Abroad (NFIA) is positive for India.

Which of the above is / are correct?
Answer: Only 1
Notes: GNP = GDP + NFIA. India’s NFIA is negative. Thus India's GDP is more than its GNP. NFIA = Factor income earned from abroad by residents - Factor income of non-residents in domestic territory.

This question is part of UPSC Daily 20 MCQ Series Course on GKToday Android app.