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UNIT-I
A national income estimates measures the volume of commodities and services turned out during a given period, counted without duplication.
Estimated by
Year
Ministry of Commerce
National Income (Rs. Crore) 1868 370 1899 390 1911 1,942 1931-32 1,689 1945-46 6,234
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Growth rate of per capita income by J.R.Hicks, M. Mukherjee and S.K.Ghosh for the period 18601945 at 1970-71 prices is as under:
Per capita income during 1860-1945 = 0.5 % per annum
Time Period
1860-1885 1885-1905 1905-1925 1925-1950
Rate of Growth
1.1 -0.3 1.3 -0.1
chairmanship of Prof. P.C. Mahalanobis. Prof. Gadgil and Dr. V.K.V.R. Rao were the members In August 1949 First report 1951 final report 1954 Main features of National Income Committee report are as under; During 1950-51, agriculture and allied sector contributed half of the national income. Industrial sector contributed 1/6 of the total national income
CREATED BY RAJNI KAPOOR
Contd.
It divided the economy into 13 sectors. Income from six sectors: agriculture,
animal husbandry, forestry, fishery, mining and factory establishments is calculated by Output method Other seven sectors : small enterprises. Banking and insurance, commerce, transport, professionals and arts are computed by income method.
CREATED BY RAJNI KAPOOR
Trends in National income Growth and Structure : Annual growth rates during the plan at 1993-94 prices plan First Plan(1951-56) Second Plan (1956-61) Third Plan (1961-66) NNP at factor cost 3.6 4.1 2.5
Annual Plans (1966-69) 3.8 Fourth plan (1969-74) 3.3 Fifth plan (1974-79) Annual Plan (1979-80) Sixth Plan (1980-85) 5.0 -6.0 5.4
10 CREATED BY RAJNI KAPOOR
plan Seventh Plan (1985-90) Annual Plan (1990-91) Annual Plan (1991-92) Eighth plan (1992-97) Ninth Plan (1997-2002) Tenth Plan (2002-2007) Eleventh Plan
NNP at factor cost 5.8 5.4 0.5 6.7 7.0 7.6 9.0
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The real national income of India has increased at an annual average rate of 4.5 percent. During this period, population has also increased at an annual average rate of 1.6 percent. Per capita income has increased only at a nominal annual average rate of 2.5 percent. The rate of growth initially decelerated over the years but has then accelerated continuously. 1950 3.8 %, 1960 3.5, 1970 3.1 and 1980 5.5
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Economic slowdown
The growth process slowed down during 2008-09 due to global economic crisis. As a result there is fall in IIP and GDP, especially in the private sector.
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