National Income And Per Capita Income Of India Pdf
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Economics of the Public Sector pp Cite as. National income is one of the leading economic indicators of the state of an economy and of its resources.
Home Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. This is the economy which deals with the environmental risks and ecological scarcity and also an economy that aims for sustainable development without degrading the environment. Income is either spent on consumption or saving. Hence, NI is the addition of total consumption and total saving. In most of the rural economy considerable portion of transaction occurs informally and they are called as non-monetised economy.
Essay on the National Income of India
A variety of measures of national income and output are used in economics to estimate total economic activity in a country or region, including gross domestic product GDP , gross national product GNP , net national income NNI , and adjusted national income NNI adjusted for natural resource depletion — also called as NNI at factor cost. All are specially concerned with counting the total amount of goods and services produced within the economy and by various sectors. The boundary is usually defined by geography or citizenship, and it is also defined as the total income of the nation and also restrict the goods and services that are counted. Arriving at a figure for the total production of goods and services in a large region like a country entails a large amount of data-collection and calculation. Although some attempts were made to estimate national incomes as long ago as the 17th century,  the systematic keeping of national accounts , of which these figures are a part, only began in the s, in the United States and some European countries. The impetus for that major statistical effort was the Clutch Plague and the rise of Keynesian economics , which prescribed a greater role for the government in managing an economy, and made it necessary for governments to obtain accurate information so that their interventions into the economy could proceed as well-informed as possible.
Income is defined as all employee compensation plus investment profits. GNI also includes any product taxes not already counted, minus subsidies. While GNI can be used for a few purposes, it is mostly used to classify and group economies using purchasing power parity and the per capita method to determine different countries' standard of living to each other. GNI equals GDP plus wages, salaries, and property income of the country's residents earned abroad and at home. It also includes net taxes and subsidies receivable from abroad, according to the Organization for Economic Cooperation and Development.
GDP was not designed to assess welfare or the well being of citizens. It was designed to measure production capacity and economic growth. A number of countries, including India, are paving the way. Economic growth has raised living standards around the world. As a result, policies that result in economic growth are seen to be beneficial for society.
GDP Is Not a Measure of Human Well-Being
The approach for compiling the Advance Estimates is based on Benchmark-Indicator method. Projections for for Freight earnings of Railways, Passengers and Cargo handled by Civil Aviation , Cargo handled at major Sea Ports were also made available by the concerned agencies which were made use of in compilation of estimates of respective sectors. For compiling taxes on products at Constant Prices, volume extrapolation is done using volume growth of taxed goods and services and aggregated to get the total volume of taxes. Information available on Revenue expenditure, Interest payments, Subsidies etc. Extrapolation for indicators like IIP were used to be done by dividing the cumulative value for the first 7 months of the current financial year by average of ratio of cumulative value of 7 months to the annual value of past years.
In this essay we will discuss about the National Income of India. After reading this essay you will learn about: 1. Meaning of National Income 2. Trends in National Income in India 3. Rates of Growth 4. Difficulties or Limitations in Estimation 6. Inter-State Variation.
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India's per capita net national income or NNI was around thousand rupees in In contrast, the g ross national income at constant prices stood at over trillion rupees. While GNI and NNI are both indicators for a country's economic performance and welfare, the GNI is related to the GDP or the gross domestic product plus the net receipts from abroad, including wages and salaries, property income, net taxes and subsidies receivable from abroad. It is expected to grow at the rate of 6. This represented a growth rate of
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