IKHLAQ SIR.

 METHODS OF MEASURING NATIONAL INCOME. National Income of a country is calculated by following three methods : Product Method ● In this method the net value of final goods and services produced in a country during a year is obtained and the total obtained value is called total final product. This represents Gross Domestic Product (GDP). ● Net income earned in foreign boundaries by nationals is added and depreciation is subtracted from GDP. Consumption Method ● It is also called the expenditure method. Income is either spent on consumption or saved.Hence national income is the addition of total consumption and total savings. [In India, a combination of production method and income method is used for estimating national income]. Income Method ● In this method, a total of net incomes earned by working people in different sectors and commercial enterprises is obtained. ● National Income = total Rent + Total Wages + total Interest + Total Profit. ESTIMATES OF NATIONAL INCOME IN INDIA ● ...

National Income Of India National income measures the net value of goods and services produced in a country during a year and it also includes net earned foreign income. [ for India financial year is 1 April to 31st March]. ● In other words, a total of national income measures the flow of goods and services in an economy. National income is a flow not a stock. ● As contrasted with national wealth which measures the stock of commodities held by the nationals of a country at a point of time, national income measures the productive power of an economy in a given period to turn out goods and services for final consumption. ●National Income is defined as total net earnings from production of goods and services in a country over a period of time, consisting of wages, salaries,rent, profit,and interests. ● National Income= C+I+G+(X-M). C=Total consumption expenditure; I=Total Investment Expenditure; G=Total Government expenditure; X= Export; M= Imports. ● National Income is considered as NNP ...