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Why is the income earned by …

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Why is the income earned by working in the branch of foreign bank in India part of domestic factor income in India?
  • 1 answers

Yogita Ingle 5 years, 1 month ago

(i) Profit earned by a foreign bank is included in domestic product of India because the banks branches are located in the Indian domestic territory.
(ii) Scholarships is a trasnfer payment because no service is provided in return.
So, it is not included in domestic income.

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