BMC Associates says Replied on 20th June,2026 11:36 AM

Electricity sold to a steel plant is not counted separately in National Income because it is treated as an intermediate good, not a final good. The steel plant uses electricity as an input in the production of steel, which is the final output for income calculation purposes. If the value of electricity is included separately and the value of steel is also included, it would lead to double counting. So, although electricity is consumed by the steel plant, it is not final consumption; it is part of the production process. Hence, only the value of the final product (steel) is included in national income. For guidance on accounting, taxation, and financial concepts, businesses often consult experienced chartered accountant firms in gurgaon. A professional chartered accountant gurgaon, reliable ca firm in gurgaon, or expert ca in gurgaon can help clarify such economic and financial issues.