Summary on gross mixed income

1. GROSS
MIXED
INCOME
By
Suparna pani

2. GROSS MIXED INCOME
Gross mixed income refers to earning from farming
enterprise, sole proprietorships and other professions,
such as medical and legal practices. In these
professions owners themselves assumes the role of
an entrepreneur, financier, worker and landlords.
In other words ,GMI is the income of unincorporated
business
These income are the wages, interest on own money,
rent on property and profit from self employment

3. GDP MEASUREMENT IN
INDIA
 The CSO of India has upgraded the national
income accounting standard for growth
estimation in 2015 as global practice
 Globally, most accepted and followed national
income accounting format is the system of
National Accounting (SNA) prepared by UN
and ratified by the IMF, World Bank, OEDC
and EC
 The SNA was launched in 1932 and upgraded
in 2008

4. CHANGES MADE BY CSO
Three types of changes were made by CSO in the
GDP estimation procedure:
Methodological changes
Changes in the base year
Giving comprehensive coverage to all sector

5. METHODOLOGICAL
CHANGES
 Methodology is the science of doing something
 Specifically, there are two methodological changes and both are
interrelated
1. GVA(Gross value added) from different sector will be calculated by
basic prices .GVA for a sector is the sum of expenditure made in
that sector
GVA at basic prices=CE+OS/MI+CFC+Production tax less
production subsidies
Where CE- Compensation of employee
OS-Operating surplus
MI-Mixed income
CFC-Consumption of fixed capital
The above identity says that GVA is the sum of payment made to labor,
surplus of business entity(profit) ,income of self employed(mixed
income) and money we keeps to replace the existing
machineries(CFC)

6. contd…..
In this way first step in calculating the GDP i.e.,
obtaining sectoral GVA is completed. Now we have to
accumulate these sectoral GVA to get GDP. The
important theory is that GDP is measure by market
price instead of factor price
2. GDP at market price=summation of GVA at basic
price+product tax –product subsidies
Actually estimate of GVA at basic price is a step to
measure the GDP at market prices. We know that
measure GDP,GVA from all the sector of the economy
should be cumulated.

7. Changes in the Base year
 Here 2011-12 considered to be a stable year
among the available option. Previously ,it was
2004-05
 India’s Gross operating surplus and Gross mixed
income at current price
 2009-42 million
 2008-36million
 2004-20million

8. MORE COVERAGE
 The coverage has been enhanced with
greater representation of manufacturing and
financial sectors and this becomes notable
change that caused an upward revision of
GDP for few years
 Comprehensive coverage of financial sector
including that of stock brokers,coverages of
activities of local bodies etc marks a deviation
that seems to have caused the increased in
GDP figures.

9. CONCLUSION
Thus ,Gross mixed income is a important
component of GDP measure under income
approach

10. REFERENCE-