National income:- Value of final goods and services it (the nation) produces for
the people residing in the nation. GDP & GNP are parts of the national income.
National income comprises of Consumption, Investment Expenditure, and
Expenditure by Government, Imports and Exports. (N.I = C+I+G+|X-M|). Basic
Definition.
Total value of final goods and services produced by normal residents over an
accounting year, after adjusting depreciation. It is net national product at
factor costs. It doesn’t include taxes, depreciation, and non-factor
inputs [raw materials].
Total value of final goods and services produced by normal residents of a
territory over an accounting year, after adjusting depreciation. It is net
domestic product at factor costs. Both NDP & NNP can be measured at
constant price (real income) or market prices (nominal income). Domestic
Income + NFIA = National income. NFIA – Net Factor income from abroad.
NFIA is calculated by subtracting the income made by foreigners in India from
the income made by Indians in foreign Countries.
Measurements of National Income:
Income Method: Estimated by adding all the factors of production (rent,
wages, interest and profit) and the mixed-income of self-employed (one-third
of Indian population are self-employed). This is the domestic income related
to the production within borders of the country.
Production Method: Estimated by adding the value added by all the firms.
Value-added = Value of Output – Value of (non-factor) inputs This gives the
GDP at MP bcoz it includes depreciation hence ‘Gross’ and bcoz it includes
taxes hence ‘Market Price’.
o To reach NNP at FC add NFIA i.e., GDP at MP + NFIA = GNP at MP.
o Subtract Depreciation i.e., GNP at MP – Dep = NNP at MP.
o Subtract Net Indirect Taxes i.e., NNP at MP – NIT = NNP at FC.
Expenditure Method: (Y = C+I+G+|X-M|) Where Y = GDP at MP, C =
Private Sector’s Expenditure on final consumer goods, G = Governments
expenditure on final consumer goods, I = Investment or Capital Formation, X
= Exports, M = Imports, X-M = Net Exports.
Other Data about National income:
1. A first rough estimate of National Income was done by Dadabhai Naoroji for
1867-68, published in his book “Poverty and Unbritish rule in India” (famous
for its Drain of Wealth theory)
2. The first scientific estimate made by Prof V K R V Rao (1931-32)
3. The Indian government estimated the National Income for the first time in
1948-49 through the Ministry of Commerce.
4. National Income Committee was set up in 1949 by Dr. P C Mahalanobis
P C Mahalanobis was also the chairman of Indian Statistical Institute.
Currently, the National Statistical Office (NSO) estimates National Income
It publishes National Accounts Statistics annually.
Under the Ministry of Statistics and Programme Implementation.
Now, CSO has been merged with the National Sample Survey
Organization to form the National Statistical Organization.
Included in National Not-included in National
Sl. No
income income
Goods Produced for self-
1 Intermediate goods
Consumption.
Transfer payments
(unilateral payments made
Estimated rent of the without expectations of
2
self-occupied property return; like gifts,
unemployment allowance,
donations, etc)
Sale and purchase of old
goods and existing services
3 - (shares are not included
unless they are through an
IPO)
Windfall gains (lottery
4 -
income)
Black Money (Can't be
5 -
estimated)
6 - Work done by Housewives
India’s Fiscal Deficit in Fiscal Year 2024 improved to 5.6% (revised estimates 5.8%)
of GDP – Given by Govt. India’s fiscal deficit stood at Rs.16.54 lakh crore in FY24
against the budget of Rs. 17.89 lakh crores – this means the fiscal gap has reached
95.3% of the budget - Given by Controller General of Accounts. Total expenditure
for 2024-25 is 44.33 lakh crore, Capital expenditure (Infrastructure) is 9.49 lakh
crore.
RBI imposes monetary penalty of 88.70 lakhs on SBM Bank (India) for non
compliance of certain regulatory norms.
Social and Cultural History of A.P
The Satvahanas: After the fall of the Mauryan Empire, the Satvahanas rose
in power and became the power house in the Andhra History. According to
the Matsya Purana there were 29 rulers of this dynasty. They ruled over the
Andhradesa including Deccan for over 400 years. The Sathvahanas were also
called as the Salivahanas or Satakarnis. The founder of the Sathvahanas
Simukha unified various principles of the Andhra into one and became its
ruler (271 B.C. – 248 B.C.). He made Dharanikota near Amaravathi his first
Capital, later he shifted the capital to Pratishtana (Paithan in Aurangabad).
Satakarni II, the 6th ruler of the dynasty (184 B.C.) extended his kingdom
to the west by conquerting Malwa. He extended his borders far into the
central India across the Vindhyas, perhaps up to the river Ganges. He
ruled for 56 years. His rule was followed by 8 uneventful rulers without
any notable achievements to their names. Pulumavi I brought renewed
energy strength and glory to their kingdom. He struck down the last of the
Kanva rulers, Susarman, in 28 B.C. and occupied Magadha.