Consider the following statements relating to estimation of National Income : 1. Foreigners working in Indian Embassies are normal residents of India. 2. Foreigners working in the office of WHO, World Bank, UNO etc. located in India are not normal residents of India. ’ 3. Indians working in foreign embassies in India are not normal residents of India. Which of the statements given above is/are correct ?

The correct answer is Option 1. In National Income accounting, the concept of Normal Resident is defined by the location of the economic interest rather than citizenship.

• Statement 1 is correct: Indian Embassies located abroad are considered part of the domestic territory of India. Foreigners working in these embassies are treated as normal residents of India because they are employed by the Indian government to serve its interests, regardless of their nationality.
• Statement 2 is incorrect: Foreigners working in international organizations like WHO or the World Bank located in India are considered normal residents of India if they reside and work there for more than one year. These organizations are "enclaves," but their employees are residents of the country where they live.
• Statement 3 is incorrect: Indians working in foreign embassies located in India are normal residents of India because their center of economic interest remains within India.