TRENDS IN NATIONAL INCOME MEANING NATIONAL INCOME THREE

TRENDS IN NATIONAL INCOME

MEANING • NATIONAL INCOME • THREE APPROACHES TO DEFINE NATIONAL INCOME • PRODUCT METHOD • INCOME METHOD • EXPENDITURE METHOD

NATIONAL INCOME IN INDIA • BEFORE INDEPENDENCE • PCY • DADABHAI NAOROJI - RS. 20 • WADIA AND JOSHI RS. 44 SHAH AND KHAMBATA - 74 VKRV RAO ------- 62 MINISTRY OF COMMERCE-----198

DIFFICULTIES IN MEASURING NI NO GOVT. AGENCY NO RELIABLE DATA NO UNIFORMITY IN METHODS ESTIMATES BASED ON CURRENT PRICES

NATIONAL INCOME AFTER INDEPENDENCE • NATIONAL INCOME COMMITTEE • 1951 -1954 CENTRAL STAISTICAL ORGANISATION • CONVENTIOANL SERIES-1952 -67 BASE 1949 • FIRST REVISED SERIES-BASE TO 1960 • SECOND REVISED- BASE 1970 • THIRD –BASE 1980 FOURTH – BASE 1993 -94 • FIFTH-1999 -2000 ; ; NEW SERIES-2004 -05

METHODS TO MEASURE NI AFTTER INDEPENDENCE • VALUE ADDED METHOD-AGRICULTURE; FORESTRY; FISHING; MINING REGISTERED MANUFACTURING VALUE ADDED = VALUE OF OUTPUT – VALUE OF INTERMEDIATE GOODS • INCOME METHOD -COTTAGE AND SMALL INDUSTRIES; UNREGISTERED MANUFACTURING; ROADS WATER TRANSPORT; HOTELS; • ADDING FACTOR INCOMES; OR PROFIT LOSS ACCOUNTS •

METHODS TO MEASURE NI AFTTER INDEPENDENCE • EXPENDITURE METHOD OR • RURAL CONSTRUCTION ACTIVITY ; ; COMMODITY FLOW METHOD FOR URBAN CONSTRUCTION

IMPORTANCE • TO ESTIMATE THE NLEVEL OF ECONOMIC DEVELOPMENT • TO CALCULATE PER CAPITA INCOME • TO ANALYSE BUSINESS CYCLES • TO HELP IN FORMULATION OF ECONOMIC • FOR INTERNATIONAL COMPARISONS • TO ANALYSE REGIONAL COMPARISONS

DIFFICULTIES IN MEASURE MENT OF NATIONAL INCOME • NON MONETISED SECTOR • LACK OF DISTINCT DIFFERENTIATION IN ECONOMIC ACTIVITIES • CONCEPTUAL PROBLEMS- DEFINITION ; ; BASE YEAR • BLACK MONEY • INTERREGIONAL DIFFERENCES • NO RELIABLE DATA DUE TO ILLITERACY

• WRONG DISCLOSURE OF DATA • DIFFICULTIES OF SAMPLING TECHNIQUES • LACK OF SKILLED – TRAINED PERSONNEL • • WHAT IS NOT ICLUDED IN NI ILLEGAL ACTS NON ECONOMIC ACTIVITIES BLACK MONEY