trends in national income and five year plans.pptx

Trends of national income

1. National Income National Income refers to the money value of all the goods and services produced in a country during a financial year. In other words, the final outcome of all the economic activities of the nation during a period of one year, valued in terms of money is called as a National income.

2. Methodology of National Income Estimation in India:  In India, the estimation of national income is being done by two methods, i.e., product method and income method.

3. Fiv e Year plans

4. First Plan (1951-56):  During the First Plan period, the national income at constant (1980-81) prices has increased from Rs. 41,443 crore in 1951-52 to Rs. 48,288 crore in 1955-56 showing an annual average, growth rate of 3.6 per cent. Again the per capita income at 1980-81 prices has also increased from Rs. 1,135.4 in 1951-52 to Rs. 1,228.7 in 1955-56 showing an average growth rate of only 1.7 per cent during the same plan period.

5. Second Plan (1956-61):  During the Second Plan period, the national income at constant (1980- 81) prices has increased from Rs. 50,955 in 1956-57 to Rs. 58,602 crore in 1960-61 showing an annual average growth rate of 3.9 per cent during the plan period. Moreover, the per capita income at 1980- 81 prices has also reached the level from Rs. 1,270.7 in 1956-57 to Rs. 1,285.8 in 1960-61 showing an annual average growth rate of 1.9 per cent during the plan period.

6. Third Plan (1961-66):  During the Third Plan, the net national product at constant (1980-81) prices has increased from Rs. 60,168 crore in 1961-62 to Rs. 65,734 crore in 1965-66 showing an annual average growth rate of only 2.3 per cent during the plan period. Again, the per capita income at 1980-81 prices has also increased insignificantly from Rs. 1,355.1 in 1961- 62 to Rs. 1,355.3 in 1965-66 showing an annual average growth rate of only 0.1 per cent during the plan period.

7. Fourth Plan (1969-74):  During the Fourth Plan, the national income at constant (1980-81) prices has increased from Rs. 78,177 crore in 1969-70 to Rs. 86,010 crore in 1973-74 which revealed the annual average growth rate of only 3.3 per cent during the plan period.  Again the per capita income at 1980-81 prices has also increased marginally from Rs. 1,478 in 1969- 70 to Rs. 1,483 in 1973-74 showing an annual average growth of only 0.9 per cent during the same period.

8. Fifth Plan (1974-78):  During the Fifth Plan period, the net national product at constant (1980- 81) prices has increased from Rs. 87,116 crore in 1974-75 to Rs. 1,03,670 crore in 1977-78 showing an annual average growth rate 4.9 per cent during the plan period. Again the per capita income at 1980-81 prices has also increased from Rs. 1,469 in 1974- 75 to Rs. 1,635 in 1977-78 showing an annual average growth rate of 2.6 per cent during the plan period.

9. Sixth Plan (1980-85):  During the Sixth Plan period, the net national product at constant (1980- 81) prices has increased from Rs. 1,10,685 crore in 1980-81 to Rs. 1,33,808 crore in 1984-85 showing an annual average growth rate of 5.4 per cent during the plan period.  Similarly, the per capita income at 1980-81 prices has also increased from Rs. 1,630 in 1980-81 to Rs. 1,811 in 1984-85 showing an annual average growth of 3.2 per cent during the plan period.

10. Seventh Plan (1985-90):  During the Seventh Plan period, the national income of India at constant (1980-81) prices has increased from Rs. 1,39,025 crore in 1985-86 to Rs. 1,77,315 crore in 1989-90 showing an annual average growth rate of 5.8 per cent during the plan period. Again the per capita income at 1980- 81 prices has also increased from Rs. 1,841 in 1985-86 to Rs. 2,157 in 1989-90 showing an annual average growth rate of 3.6 per cent during the plan period.

11. Eighth Plan (1992-97):  During the Eighth Plan period, the national income at constant (1980- 81) prices has increased considerably from Rs. 1,95,602 crore in 1992-93 to Rs. 2,58,465 crore in 1996-97 showing an annual average growth of 6.8 per cent during the plan period.  Again the per capita income at 1980-81 prices, has also increased from Rs. 2,243 in 1992-93 to Rs. 2,761 in 1996-97 showing an annual average growth rate of 4.9 per cent during the plan period.

12. Ninth Plan (1997-2002):  The Ninth Plan which has started from 1st April, 1997 continued till 31st March, 2002. The draft of the Ninth Plan approved by the National Development Council (NDC) on 19th February, 1999 has projected a GDP growth rate of 6.5 per cent during the plan period. But the achievement is estimated at 5.5 per cent during the plan period.

13.  During the Ninth Plan period, the national income at constant prices (1993-94) has increased considerably from Rs. 8,90,890 crore in 1997-98 to Rs. 11,15,157 crore in 2001-02, showing an annual average growth rate of 5.5 per cent during the plan period. Again the per capita income at 1993- 94 prices has also increased from Rs. 9,243.6 in 1997-98 to Rs. 10,753.7 in 2001-02, showing an annual average growth rate of 3.6 per cent during the plan period.

14. Tenth Plan (2002-2007):  The Tenth Plan which started in 1st April. 2002 continued till 31st March, 2007. The draft of the Tenth Plan approved by NDC on 1st September, 2001 has set a target of achieving growth rate of 8.0 per cent in GDP during the plan period.  During the Tenth Plan period, the national income at constant prices (1999-2000) has increased considerably from Rs. 18,05,830 crore in 2002-03 to Rs. 25,30,494 crore in 2006-07, showing the annual growth rate of 3.9 per cent in the first year (2002-03) and 9.7 per cent in 2006-07.

15. Eleventh Plan (2007-2012):  The Eleventh plan which started in 1st April, 2007 and continue till 31st March 2012. The draft of the Eleventh Plan approved by NDC on 9th December, 2006 has set a target of achieving growth rate of 9.0 per cent of GDP during the plan period.  During the Eleventh Plan period, the national income at constant prices (2004-05) has increased from Rs. 3,449,970 crore in 2007-08 to Rs. 3,672,192 crore in 2008-09 (Q), showing the annual growth of rate of 6.4 per cent.

16. Twelfth Plan (2012-2017):  This plan was started from 1 st april 2012 and continued till 31 st march 2017.  The growth rate was showcased as 8.2% but the National Development Council (NDC) approved 8% growth for the period. 2012- 2013 2013- 2014 2014- 2015 2015- 2016 2016- 2017 2017- 2018 National Income 8 8 .41 lakh cr 100.56 lakh cr 106.57 Lakh cr 113.81 lakh cr 121.65 lakh cr 129.85 lakh cr

17. Niti Aayog  The NITI Aayog (Hindi for Policy Commission), also National Institution for Transforming India, is a policy think tank of the Government of India, established with the aim to achieve Sustainable Development Goals and to enhance cooperative federalism by fostering the involvement of State Governments of India in the economic policy-making process using a bottom- up approach. Its initiatives include "15 year road map", "7-year vision, strategy and action plan", 2012-13 2013-14 2014-15 2015-16 GDP at market prices 5.6 6.6 7.2 7.6

18. National Income:2017-2018  India's per capita income grew at a pace of 8.6 per cent to Rs 1,12,835 during the last fiscal ended March 2018, official data showed. The per capita net national income in 2016-17 stood at Rs 1,03,870, witnessing a growth of over 10.3 per cent from the preceding fiscal ended March 2016 (at Rs 94,130). "The per capita income at current prices during 2017-18 is estimated to have attained a level of Rs 1,12,835 as compared to the estimates for the year 2016-17 of Rs 1,03,870, showing a rise of 8.6 per cent," showed the provisional estimates of annual income, 2017-18 released by the Ministry of Statistics and Programme Implementation (MOSPI).

19. National Income Trend line 6 000 4 000 2 000 8 000 1 8 000 00 1 6 000 00 1 4 000 00 1 2 000 00 1 000 00 NNP @ current price NNP @ current price From: CSO * All figures in crore

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