Economics · National Income Accounting

Which of the following statements correctly identifies the key differences between Gross Domestic Product (GDP) and Gross National Income (GNI) in the context of the Indian economy? Statement 1: GDP represents the total value of all goods and services produced within India's geographical boundaries, whereas GNI includes Net Factor Income from Abroad (NFIA). Statement 2: If GNI is greater than GDP, it implies that the Net Factor Income from Abroad (NFIA) is negative, meaning factor payments made to the rest of the world exceed factor receipts from the rest of the world. Statement 3: In the case of India, GDP is consistently higher than GNI because the large volume of remittances sent by Non-Resident Indians (NRIs) abroad is counted in NFIA, which is subtracted from GNI. Statement 4: GNI is a better measure of the economic well-being of a nation's residents, as it captures income earned by Indian residents both at home and abroad.