Presentation on Topic National income analysis

Presented by: Rajwinder Lokesh Rahul


To Topic  Introduction To Concern  Objectives Of The Study  References  Data Accumulated  Conclusions  Recommendations

 National income is the money value of all final goods & services produced in a country during a period in one year. without duplication.Introduction To Topic income refers to the market value of the goods & services produced by an economy during the period of one year. Low income>low savings>low investment>low productivity>low income  National .

price level & economic transactions with the rest of the world.savings & investment.the general price level.aggregate employment. The study of economy as a whole is carried out by analyzing the behaviour of & interaction between macroeconomics variables including national output (GDP & GNP).Introduction To Concern  National income is a part of macro economics  Macroeconomics is the study of economy as a whole. .aggregate consumption.

 To become aware about national income concept as a whole.  To know the growth rate of our country.Objectives Of The Study  To become aware about the methods of calculating national income.  To know the national income of our country. .  To become aware about the history of national income.

References  Managerials economics by D N Dwivedi  Indian economy by T. Jain  Managerial economics (kalyani publisher)  Managerial economics by T.Jain .R.R.

Calculation of per capital income Per capital income = National income of year 2009 divided by Population of 2009.  History .Data Accumulated of National income concept In 1876 . Dadabhai Naroji was the first person to prepare estimates of national income & per capital income for the year 18671867-68.

of india) 340 1067 2364 1689 6234 20 44 74 62 198 .V.Of Estimate Natitonal Income(Rs Crore) Per Capital Income(Rs) Dadabhai naroji 18671867-68 Wadia & joshi 19131913-14 Shah & khambata 1921-22 1921V.Estimates of national income & per capital income before independence Estimated by Yr. Rao 19311931-32 Ministry of commerce 1945-46 1945(govt.K.R.

2007) .Comparison of per capital income with other countries Country Per Capital Income(us dollars)year 2006 Usa 44970 Uk 40180 Japan 38410 China 2010 Srilanka 1300 India 820 Pakistan 770 (Source:world development report.

Methods of Measuring National Income  Product or Value Added Method or Net Output Method Method Method & Commodity Flow  Income  Expenditure Method .

It is used for framing various policies by the government. It is used in computing per capital income. . It is used for analysing various phases of business cycles.Importance Of Measure National Income o o o o o It helps us to estimate the level of economic development of nation. It helps in comparing economic growth of our country with other nations.

Difficulties In Measuring National Income In India  Non monetised sector  Lack of distinct differentiation of economic activities  Black money  Inter regional differences  Conceptual problems  Mass illiteracy  Non availability of data about certain incomes  Difficulties of sampling technique  Lack of skilled personnel to collect data & prepare estimates .

What National Income Does Not Measure?  Income from illegal activities like Smuggling. .income which is not reported to income tax authorities.Gambling etc  Income from non economic activities like domestic work by Housewives.e. and on which income tax is not done without remuneration.  Black Moneyi.

producers & the government).  NNP (Net National Product) The NNP gives the measure of net output available for consumption by the society (including consumers.Measures Of National Income GNP (Gross national product) GNP is defined value of all final goods & services produced in one year but plus income earned abroad by the nationals & minus income earned locally by foreigners.NNP is the real measure of the national income.  GDP (Gross domestic product) In case of GDP.NNP=NNI(Net National Income) o NDP (Net Domestic Product) NDP = NNP less net income from abroad  .minus income earned abroad by the nationals & plus income earned locally by foreigners from the total value of domestically produced goods & services.

0 (target)(2007- Percentage rate of growth of national income at constant prices .5 Tenth plan 7.7 Ninth plan 5.6 Second plan 4.8 Eight plan 6.Plans percentage growth of national income First plan(1951-56) plan(19513.8 Eleventh plan (target)(2007-2012) 9.1 Third plan 2.0 Sixth plan 5.3 Fifth plan 5.5 Fourth plan 3.4 Seventh plan 5.

4 Germany 4.2 10.7 4.6 6.1 Srilanka 4.4 Japan 10.9 2.0 2.1 India 3.4 2.8 (source:world development report.Growth Rate Of GDP Of Different Nations (Annual Average In Percentage) Country 19691969-70 2005-06 2005Usa 4.3 2.4 7.7 World 5.2007) .9 China 5.6 Pakistan 6.

External Trade) . Banking.Communication & Trade 2.forestry.National Income-Industrial Origin IncomeCentral statistical organisation has divided the economy into three basic sectors:  Primary sector (Agriculture. Transport.power generation.mining & Quarrying)  Secondary sector (Manufacturing.gas & water supply)  Tertiary sector/service sector ( & Computer Software 3.Defence & Other Services 4.Public Administration.

fatalism)  Political causes .social institutions.Causes Of Low National Income Of India Economic causes  Low rate of saving & investment  Backward technology  Rapid increase in population  More dependence on agriculture  Inadequate industrial development  Inadequate progress of transport & power  Unbalanced growth of different regions Social causes (Illiteracy.

Conclusions  National income of our country is less. on growing stage.  National income represents the growth & development of economy.  our country is under developed economy.  Various causes is a hurdle in the success of our country. . comparisons with different nations.

Recommendations  Increase in rate of saving & investment  Modern technology  Development of agriculture  Development of industries  Development of transport & power  More social welfare services  Growth of foreign trade  Proper Use of natural resources  Education  Development of banking & insurance  Political stability .

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