A case study on national income of India

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A case study on national income of India

  1. 1. A CASE STUDY ON NATIONAL INCOME OF INDIA<br />Prsented by:<br /> Robin Varghese<br /> Section : C<br />
  2. 2. Summary of the case<br />Growth of Indian economy:<br /><ul><li>1975-76: 9.5% Growth
  3. 3. 1988-89: 11% Growth
  4. 4. 2005-06: 9.0% Growth
  5. 5. 2006-07: 9.6% Growth
  6. 6. 2007-08: 6.7% Growth
  7. 7. 2010 : 8.9% Growth</li></li></ul><li>National Income <br /> « The value of goods and services produced <br />With in the country during a year »<br />
  8. 8. Préparation of National Income in India<br />Category A: Agriculture, forestry, fishing, mining and quarrying, registred manufacturing and construction.<br />CategoryB: Electricity, transportation and communication, banking and insurance, real estate, pablic administration and defence.<br />Category C: gas and water supply, unorganised transport, storage, trade, hotels and restaurants, other services.<br />
  9. 9. QUESTION AND ANSWERS<br />
  10. 10. Significant of preparing national income at constant price<br />Current price: price prevailing in the year.<br />Constant price: price prevailing at a particular base year.<br />NI at constant price is prepared to measure the physical output in an economy, <br />between deferent time periods<br />Deflator: ratio of nominal GDP to real GDP<br />
  11. 11. “No method of national income is perfect” prove.<br />Limitations of deferent methods<br />Product method<br /><ul><li>Double counting
  12. 12. Non applicability in service sector
  13. 13. Exclusion of non-marketed products</li></ul>Income method<br /><ul><li>Exclusion of non monitory income
  14. 14. Exclusion of non marketed services</li></ul>3) Expenditure method<br /><ul><li>Neglects barter system
  15. 15. Ignore own consumption
  16. 16. Affected by inflation</li></li></ul><li>Put the values in the equation on the data given in statement 2<br />NNP = GNP – Depreciation<br />2004-05: 2833558 – 332491 = 2501067<br />2005- 06: 3225963 – 379201 = 2846762<br />2006-07: 3722669 – 426030 = 3296639<br />
  17. 17. GNP<br />GNP = GDP + Net income from Abroad<br />2004-05: 2855933 + (-22375) = 2833558<br />2005-06: 3250932 + (-24969) = 3225963<br />2006-07: 3743472 + (-20803) = 3722669<br />
  18. 18. Per capita income<br />PCI= NNPFC / Population<br />2004-05: 2,50,10,6701,090 = 22,946<br />2005-06: 2,84,67,620 1,107 = 25,716<br />2006-07: 3,29,66,390 1,122 = 29,382<br />

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