National income is defined as the aggregate monetary value of all final goods and services produced in a country within one year. It includes incomes earned by individuals from production including goods produced by the government and from international trade after accounting for exports and imports. Several economists have defined national income as the total income generated through the combination of a country's natural resources, capital, labor and technology, which can be measured and aggregated to determine the overall economic output of a nation within a period of time.

2.  National income is the income of the country
 It is defined as the “money measure of the
overall flow of final goods & services in an
economy during a year”
 It is taken as the aggregate of incomes
earned by individuals in a country
 This includes the goods & services produced
by government , exports & imports
 These are necessary to determine the
national income of a country
 It is taken for a given period of time

3.  Many economists have given these
their definition
 According to pigou “National
income is a part of the objective
income of the community
including of course income
derived from abroad which can be
measured in money”

4.  According to fisher national income
is “the national dividend (or)
income consists solely of services as
received by ultimate consumers
, whether from their material or
from their human environment”

5.  According to marshall “the labour
& capital of a country acting upon
its natural resources produce
annually a certain net aggregate
of commodities , material&
immaterial including services of
all kinds is called as annual
income of a country

6.  According to it national income estimates
measures the volume of commodities &
services turned out during a given period of
time counted without depreciation

7.  Natural Resources
 Quality & Quantity of Factors of Production
 State of Technology
 Political will & Stability

8.  It is the aggregate value of all final goods &
services produced in a country in a year
 It does not include the intermediate goods

9.  The goods & services purchased by the
consumers ; C
 Investments made by public & private sectors
;I
 Government expenditure on public utility
services ;G
 Incomes earned through international trade ;
(x-m) x= value of exports ;m= value of
imports
 Net income transfers from abroad (r-p)
r=payments received from other countries
;p=payments made to other countries

10. Taxes (IT):The price of a good includes the
manufacturing cost & indirect tax . Hence to
know the real cost we must subtract taxes
 Subsidies(S):Subsidy makes the price of a
good different from the real cost . In a
developing country like India , to help the
producers , the govt. provides incentives to
the producers to purchase the factors of
production at a price lower than the market
price i.e., by subsiding it

11.  Using the above components we define
a. GNP at market price = C+I+G+(X-M)+(R-P)
b. GNP at factor cost = C+I+G+(X-M)+(R-P)+
IT+S

12.  In the