₹900 million -> We need to find Indirect Taxes using the relationship between GNP at Market Price and National Income.
Step 1: Find GNP at Factor Cost
- National Income (NI) = NNP at Factor Cost = ₹4000 million
- GNP at FC = NNP at FC + Depreciation
- GNP at FC = 4000 + 200 = ₹4200 million
Step 2: Apply the formula
- GNP at MP = GNP at FC + Indirect Taxes - Subsidies
- 5000 = 4200 + Indirect Taxes - 100
- 5000 = 4100 + Indirect Taxes
- Indirect Taxes = 900 million
The relationship shows that market prices include indirect taxes but exclude subsidies, while factor cost represents actual income earned. -> correct