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Q89 (CDS-II/2010) Economy › Basic Concepts & National Income › GDP measurement methodology Answer Verified

Consider the following statements relating to estimation of National Income : 1. Foreigners working in Indian Embassies are normal residents of India. 2. Foreigners working in the office of WHO, World Bank, UNO etc. located in India are not normal residents of India. ’ 3. Indians working in foreign embassies in India are not normal residents of India. Which of the statements given above is/are correct ?

Result
Your answer: —  ·  Correct: A
Explanation

The correct answer is Option 1. In National Income accounting, the concept of Normal Resident is defined by the location of the economic interest rather than citizenship.

  • Statement 1 is correct: Indian Embassies located abroad are considered part of the domestic territory of India. Foreigners working in these embassies are treated as normal residents of India because they are employed by the Indian government to serve its interests, regardless of their nationality.
  • Statement 2 is incorrect: Foreigners working in international organizations like WHO or the World Bank located in India are considered normal residents of India if they reside and work there for more than one year. These organizations are "enclaves," but their employees are residents of the country where they live.
  • Statement 3 is incorrect: Indians working in foreign embassies located in India are normal residents of India because their center of economic interest remains within India.
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SIMILAR QUESTIONS

IAS · 2004 · Q47 Relevance score: 2.17

Consider the following statements: 1. The National Housing Bank, the apex institution of housing finance in India, was set up as a wholly- owned subsidiary of the Reserve Bank of India. 2. The Small Industries Development Bank of India was established as a wholly-owned subsidiary of the Industrial Development Bank of India. Which of the statements given above is/ are correct?

CDS-I · 2024 · Q30 Relevance score: 2.14

Which one of the following statements is not correct for National Income Accounting for India?

IAS · 2024 · Q42 Relevance score: 1.86

Consider the following statements : 

1. In India, Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of India.

 2. In India, Foreign Institutional Investors can hold the Government Securities (G-Secs). 

3. In India, Stock Exchanges can offer separate trading platforms for debts.

 Which of the statements given above is/are correct ?

IAS · 1996 · Q70 Relevance score: 1.76

Assertion (A) : Though India’s national income has gone up several fold since 1947, there has been no marked improvement in the per capita income level. Reason (R) : Sizeable proportion of the population of India is still living below the poverty line. In the context of the above two statements which one of the following is correct ?