National Income is the total money value of all goods and services produced in a financial year. The national income of India is calculated by “Central Statistical Organization”.
Note- Financial year of India is from 1st April to 30th March.
National Income Notes
Changes which come with increase in national income
- Growth of the country increases
- Employment increases
Important measures of National Income
GDP
- It means “Gross Domestic Product”
- It is total monetary value of all final goods and services produced within the boundary of a country in a financial year
- In India, it is calculated by “Ministry of Statistics and Program implementation”
- GDP = Consumption + Investment + Govt expenditures + Exports – Imports
GNP
- It means “Gross National Products”
- It is the total monetary value of all goods and services produced by normal residents (people of India living anywhere in the world) in a financial year
- GNP = GDP +Net income inflow from overseas – Net income outflow to foreign
NDP
- it means “Net Domestic Products”
- it is annual measure of economic output of a nation calculated by subtracting depreciation from GDP
- NDP = GDP – Depreciation
NOTE – GDP is always greater than NDP
National Income Notes
NNP –
- it means “Net National Products”
- it is purest form of national income
- NNP = GNP – Depreciation
- Per Capita Income = NNP/Total population
Depreciation
- Decrease in the monetary value of an asset over time
- It is different for different assets
- It is published by “Ministry of Commerce”
National income question Answers
1. Which Indian state gives the highest income tax collection
A.Kerala
B.Maharashtra
C.UP
D.Goa
Ans – b
2.What % of Indians pay Income tax?
A.10
B.20
C.3
D.9
Ans – c
3.Which sector contributes the most to the Indian economy?
A.Service sector
B.Agriculture sector
C.Small service sector
D.Manufacturing sector
Ans – a
4.What is the base year to calculate the per capita income in India?
A.2004 -05
B.2011 -12
C.2014 – 15
D.2001 – 02
Ans – b
5.What is the present per capita income of India?
A.Rs. 85261
B.Rs. 103007
C.Rs. 93293
D.Rs. 85261
Ans – b
6.Which ministry calculates the GDP of India?
A.Ministry of Central statistical & program implementation
B.Ministry of Finance
C.Ministry of Consumer Affairs
D.Ministry of Commerce & Industries
Ans – a
7.Which one of the following is not added in the calculation of National Income of India–
A.The value of goods & services
B.The sold value of old fridge
C.Services rendered by housewives
D.Both b & c
Ans – d
8.How much does the primary sector contributes to the India’s GDP?
A.53%
B.26%
C.20%
D.15%
Ans – c
9.Which one is the purest form of income of a nation?
A.GNP
B.GDP
C.NDP
D.NNP
Ans – d
10.GDP is always?
A.Greater than NDP
B.Less than NDP
C.May be greater or less than NDP
D.None of the above
Ans – a
11.The Indian Financial year is from-
A.1st March to 30th April
B.1st January to 31st December
C.1st April to 31st March
D.1st February to 31st January
Ans – c