National Income in of India in 2010-11
MACRO ECONOMICS ASSIGNMENT TOPIC: NATIONAL INCOME
ACCOUNTING IN INDIA WITH REFERENCE TO THE YEAR 2010 2011 What
is NATIONAL INCOME? The concept of National Income is worth elaborating as
it is the index of economic development. Innumerable varieties of goods are
produced in an economy in a year. These goods or output are expressed in
monetary terms. The aggregate of monetary values of all verities of goods produced
in a country during a given period, usually a year is called National product. For the
production of innumerable varieties of output, four factors of production have their
respective contribution for which they are paid in terms of * rent, * wage, * interest
and * Profit. The sums of their enumerations... Show more content on Helpwriting.net
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The expenditure method cannot be used where markets are unorganised. The
production method cannot also be used for unorganised sectors such as small scale
industries, trade and transport, and so on. Different methods are used to measure
the income genera ted by various sectors of the economy. For calculating national
income, the Indian economy is divided into 14 broad sectors, which are then
grouped into three main categories : A, B and C. Agriculture, forestry and logging,
fishing, mining and quarrying, registered manufacturing and construction are
included in category A. The production method is applied to category A. The value
added by this category is found by subtracting the value of raw materials and other
inputs from the aggregate of commodity wise output. Electricity, railways, air
transport, water and organised transport, communications, banking and insurance,
real estate, public administration and defence are included in category B. For
category B, the income method is applied and, for this, all the types of factor
incomes which are reported in the annual accounts of various organisations are
aggregated. In category C, gas and water supply, unorganised roads and water
transport, storage, trade, hotels and restaurants, ownership of dwelling and other
services are included. For this category, sample surveys are done periodically to find
out the average productivity of labour. Estimates of the workforce are interpolated or
extrapolated and