The document defines various concepts of national income for India such as gross domestic product, gross national product, net domestic product, net national product, personal income, and disposable income. It provides India's current national income as 48,77,842 crores and GDP for 2012-13 as 1.824 trillion. The primary, secondary, and tertiary sectors contributed 13.7%, 15.7%, and 70.6% respectively to GDP in fiscal year 2013. National income is influenced by these concepts and India's economy is growing faster due to faster growth in national income.

1. NATIONAL
INCOME
Presented by
Mudassarnajar Inamdar
Section B

2. Meaning of National Income
National income is the
sum total of wages, rent,
interest, and profit earned by
the factors of production of a
country in a year. Thus it is the
aggregate values of goods and
services rendered during a
given period counted without
duplication.
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• The current NI of india is
48,77,842 crores (as per
census 2011)

3. Important Concepts of National Income
• Gross Domestic Product
• Gross National Product
• Net Domestic Product
• Net National Product
• Personal Income
• Disposable Income
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4. Gross Domestic Product
• GDP is the value of goods and services
produced within a country in a given period of
time.
• GDP per capita is often considered an
indicator of a country's standard of living.
• GDP for the year 2012-13 is 1.824 trillion (i.e.
182.4 thousand cores)
• GDP growth at 6.1 – 6.7 percent in 2012-2013
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5. Sector wise Contribution for the FY 2013
13.7
15.7
70.6
Primary Sector
Secondary Sector
Tertiary sector
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6. Gross National Product
• It is the value of all the products and services
produced in one year by labour and property
supplied by the residents of a country.
• Unlike Gross Domestic
Product (GDP), which defines
production based on the
geographical location of
production. GNP allocates
production based on ownership.
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7. Net Domestic Product
• It represents the net book value of all goods
and services produced within a nation's
geographic borders over a specified period of
time.
• NDP = Gross domestic product (GDP) -
Depreciation
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8. Net National Product
• It is the market value of a nation's goods and
services minus depreciation.
• Depreciation measures the amount of GNP
that must be spent on new capital goods to
maintain the existing physical capital stock
• NNP = Gross National Product – Depreciation
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9. Personal Income
Personal Income is the total income received by the
individuals of country from all sources before direct
taxes. Personal income is not the same as National
Income, because it includes ‘Transfer payments’
Personal income also includes:
1. Wages
2. Salaries
3. Interest and rent received by the individuals.
Personal Income = Private Income -
Saving of Private enterprise
– Corporate tax
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10. Disposable Income
• It is the actual income which can be spent on
consumption by individuals and families.
• It refers to the purchasing power of the house
hold.
• The whole of disposable income is not spent
on consumptions; a part of it is paid in the
form of direct tax.
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11. Conclusion
National income of India is influenced by
its concepts viz. GDP, GNP, NDP and NNP.
Indian economy is growing faster because of
faster growth in its national income.
Thus, all the above factors play a very vital
role in development of any Economy.
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12. Any queries??
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