Which one of the following statements is not correct for National Income Accounting for India?

Option (b) is incorrect. Net Factor Income from Abroad (NFIA) is NOT included in GDP; instead, it is added to GDP to arrive at Gross National Product (GNP). By definition, GDP measures output produced within the domestic territory, irrespective of nationality of factor owners. (a) is correct: in GDP measured by the expenditure method (C+I+G+X−M), imports are subtracted. (c) is correct: second-hand goods are excluded since they were counted in the year of original production. (d) is correct: change in inventories (stocks) is part of Gross Capital Formation.