National Income of India

 NATIONAL INCOME OF INDIA 

• National Income (NI) is the net value of all the final goods and services produced by its nationals during a financial year.  It is a flow concept.  In India, the financial year is from 1st April to 31st March.  The national income is calculated annually.

•  According to National Income Committee(1949), “A national income estimate measures the volume of commodities and services turned out during a given period counted without duplication”.

•  NI = C+G+I+(X-M) + (R-P) - Depreciation - Indirect tax + Subsidies.

Where, C = Total Consumption Expenditure

            G = Total Government Expenditure

             I =  Total Investment Expenditure

            X = Export

            M = Import

       (R-P) = Net Factor Income from Abroad

             R => Received, P=> Payment.