NATIONAL INCOME | ECONOMY

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NATIONAL INCOME

It is the measurement of flow of service and goods in economic system.Thus,national income measures the net value of goods and services produced in a country during a year and it also include net earned foreign income.
The figure of national income are based on the financial year i.e.,from 1st April to 31 March and the data of estimation of India’s national income are issued by Central Statistical Organisation (CSO).

CONCEPT OF NATIONAL INCOME: The Various concepts are as follows.

GROSS NATIONAL PRODUCT (GNP)

It refers to the money value of total output or production of final goods and services produced by the nationals of a county during a period of time,generally a year.The money value of goods and services produced by nationals outside the country should by added and the income received by foreign national within the boundary of the country should be excluded from GDP.
In equation from GNP=GDP+X-M

Where X=Income earned and received by nationals within the boundaries of foreign countries.
M=Income received by foreign nationals within the country.

GROSS DOMESTIC PRODUCT(GDP)

It is the total money  value of all goods and services produced within the geographical boundaries of the country during a given period of time.Here,it must be understood that while GDP emphasizes the output which is raised within the geographical boundaries of the county,while GNP focuses attention not only on the domestic product but also on goods and service produced outside the boundaries of a nation.

NET NATIONAL PRODUCT (NNP)

It is obtained by subtracting depreciation value (i.e.,capital stock consumption) from GNP.
In equation from
NNP=GNP-Depreciation
NNP can be calculated in the two ways

(i) At market price of goods and services,and
(ii) At factor cost.

When NNP is calculated at factor cost it is known as national income.And it is calculated by subtracting net indirect taxes (i,e.,total indirect tax subsidy) from NNP at market price.The obtained value is known as NNP at factor cost.
In equation from
N.I =NNP at Market Price – (indirect taxes -subsidy)
=NNP at Market Price – Indirect tax +subsidy.

GDP YEAR
GROWTH
2002-3
4.0
2003-4
8.1
2004-5
7.0
2005-6
9.5
2006-7
9.6
2007-8
9.3
2008-9
6.7
2009-10
8.6
2010-11
9.3
2011-12
6.2

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