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The basic difference between normal residents and non-residents of India is the days of residing in India. If a person is residing in India for more than 1 year, he would be considered a resident of India. In contrast, if he resides for less than a year, he would be a non-resident of India.
To know the difference between these two, we must clear the meaning of these terms:
Persons which are not treated as normal residents of a country are:
| Basis of Difference | Residents of India |
Non-residents of India |
|---|---|---|
| Meaning |
Persons ordinarily residing in India with economic interest. |
Persons residing in India with no economic interest. |
| Residing Period | Here, residing period involves 1 year or more. | Here, it is less than 1 year. |
|
Economic interest |
A person residing has economic interest lies in India | The person residing doesn't have any economic interest lies in India. |
|
Embassies workers |
Here, the Indians working in foreign embassies are included. | Here, the foreigners working in Indian embassies are included. |
|
International organisations |
Indian employed in international organisations located in India are included. | Foreigners employed in international organisations located in India are included. |
|
Ambassadors |
In this, the ambassadors for India in the rest of the world are considered. | On the other hand, ambassadors in India from the rest of the world are considered. |
|
Significance in National Income |
National income includes the income from normal residents of India. | National income doesn't consider income from non-residents. |
If you want to download the chart please download the following image and PDF file:-
Thus, there is a lot of difference between normal residents and non-residents of India. Hence, this difference must be cleared while estimating the national income.
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Economics Educator
Mrs. Dilgeerjot Kaur holds a B.Com and M.Com degree and has over 9 years of teaching experience in microeconomics, macroeconomics, and business economics.
This guide covers "Difference between Normal Residents and Non Residents of India", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Differences in Economics Class 11.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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