National Income of India

Domestic Product

Gross Domestic Product at Market Price =  Market value of final output of goods and services produced within the country’s domestic economy in a period of one year.

Net Domestic Product at market Price = GDP – Depreciation.

Net Domestic Product at Factor Cost = NDP – Indirect taxes + Subsidies.

National product

Gross National product at Market price = GDP+Net Factor Income from abroad.

Net national product at Market Price =  GNP – Depreciation.

Net National Product at Factor Cost or National Income = national product – Indirect Taxes + Subsidies.

Per Capital product/Income =  National income/Population or Net national Product at Factor Cost/population.

·        The first estimate of National Income was prepared by Dadabhai Naoroji and per capita income was calculated Rs 20 in 1870.

·        The First scientific estimate was made by Prof VKRV Rao using output and income methods for the year 1931-32.

·        National Income Committee was headed by Prof PC Mahalanobis, set up in 1949+ and provided for the first time comprehensive data of national income in 1954.

·        Conventional series with basic year of 1948-49 were divided the economy into 13 sectors. At present, the economy is divided into 9 sectors.