Estimates of National Income
Pre-Independence: No central author-ity or government organization in India before independence to prepare National Income Estimates.
Independence: Estimates of National In-come and Per Capita Income of India.
|Estimated By||Year of Estimates||National Income (Crore)||Per Capita Income|
|Wadia and Joshi||1913-14||1,067||44|
|Shah and Khambata||1921-22||2,364||74|
|Ministry of Commerce (Govt. of India)||1945-46||6,234||198|
Post-independence: P.C. Mahalanobis was the Chairman of the National Income Committee constituted in 1949. According to its first report in 1951, National In-come of India was 8,710 Crore and Per Capita Income was 225 in 1948-49.
Difficulties in Measuring National Income in India
- Non-monetized Sector.
- Lack of distinct differentiation in economic activities.
- Conceptual problems
- Black money
- Inter-regional differences
- Non-availability of data about certain incomes.
- Mass Illiteracy
- Difficulty in obtaining data about income
- Difficulties of sampling technique
- Indicates economic growth
- Helps in policy formulation
- Inter-sectoral comparisons
- Helpful in trade union
- Distribution of income
- Helpful in economic planning
- Structural changes in the economy
- Facilitates forecasting
- “Green accounting” means measuring the national income of a country taking into account estimation of pollution and environmental damage.
- The estimates of National Income in India are prepared by Central Statistical Organization (CSO) and are called National Accounts Statistics.
Annual growth rate of National Income and Per Capita Income
|Plan||National Income (%) p.a.||Per Capita Income (%) p.a.|
|Twelfth Plan (2012-13)||5.0||3.7|