1. National income of India
SARBJEET KAUR
Lecturer in Economics

2. Meaning of National Income
Various estimate of national Income
Causes of Low National Income
Major Features of national income in India
Sect oral contribution of national income
Inter state variations in national income

3. National Income
The total net value of all goods and services produced within a nation over a specified period of time, representing the sum of wages, profits, rents, interest, and pension payments to residents of the nation.

4. National income estimate
Year of estimate
National Income
(Rs. Crore)
Per Capita Income
(Rs)
Dadabhai Naroji
1868
370 20
Findley Shirras
1911
1942 80
V K R V Rao
1689 62
Ministry of Commerce
6234
198

5. Difficulties in measuring National income in India
Non Monetized Output and its transaction
Non Availability of Information about petty income
Lack of Differentiation in Economic function
Unreported Illegal income
Lack of Reliable Statistical data

6. Trends In National Income of India
GDP Growth rate of India at2004 – 05 (%)
2 . Growth in per capita income (Rs) at current price and at (constant price)
Current Price
27, , , , ,749
Constant Price32, , , , ,745
Note: is takes as the base year (for constant price)
Source :Economic Survey

7. 3. Sector wise rate of growth at factor cost at 2004-2005 prices (per cent)
Agriculture
Mining
Manufacturing
Electricity,
Gas & Water Supply
Construction
Trade, Hotels
& Restaurants
Banks,Insurance
and Real Estate
Community,
and Social Services
Source :Economic Survey

8. Causes for slow growth of National income
High growth rate of population
Excessive dependence on Agriculture
Occupational structure
Low level of technology and its poor Adoption
Poor Industrial development
Poor development of Infrastructure facilities

9. Poor rate of saving and Investment
Social Political condition

10. Major feature of national Income In India
Excessive dependence on Agriculture
Poor Growth rate of GDP and per capita income
Unequal distribution and poor standard of living
Growing contribution of tertiary sector

11. Unequal Growth of different sectors
Regional disparity
Urban and rural disparity

12. Suggestion to raise the level of national income
Development of agriculture sector
Development of Industrial sector
Raising the level of saving and Investment
Develoment of infrastructure
Optimum utilization of natural resources
Removal of Inequality

13. Control over Population
Balanced growth
Higher growth of Foreign trade

14. Trends for Interstate Variation in National Income and GDP
There is vast variation amongst the Indian states w.r.t per capita income and their contribution to national income. 4. CONTRIBUTION OF STATES IN INDIA’S NDP
High Income States
% share in NDP
MAHARASHTRA
13.3 %
UTTAR PRADESH
8.0 %
ANDHRA PRADESH
7.7 %
WEST BENGAL
7.2 %
GUJARAT
6.8 %

15. Per capita income of different states
Low income states
% share in NDP
JHARKHAND
1.6
ASSAM
1.7
CHATTISGARH
1.8
ORISSA
2.4
BIHAR
2.7
Per capita income of different states
High income states
Per capita income (Rs p.a)
Low income states
Per capita income (Rs p .a)
GOA
1,05,582
BIHAR
11,135
HARYANA
58,531
UTTAR PRADESH
16,060
MAHARASHTRA
47,051
MADHYA PRADESH
18,051
GUJARAT
45, 773
JHARKHAND
19,928
PUNJAB
44,923
ORISSA
23,403

16. Causes of Inter state variations
Historical Factors
Geographical factors
Location Advantages
Failure of economic planning
Marginal effect of Green revolution
Political instability