National Income is the most fundamental concept in Macroeconomics — it measures the economic performance of an entire country over a year.
India's National Statistical Office (NSO), formerly CSO, is responsible for calculating and publishing India's National Income data.
National Income is the total monetary value of all final goods and services produced by the residents of a country in a given year, including income earned abroad by residents but excluding income earned by foreigners within the country.
Formally, National Income = NNP at Factor Cost (Net National Product at Factor Cost)
| Term | Full Form | Simple Meaning |
|---|---|---|
| GDP | Gross Domestic Product | Total value of goods/services produced WITHIN the country |
| GNP | Gross National Product | GDP + income earned by residents abroad − income earned by foreigners in India |
| NNP | Net National Product | GNP − Depreciation |
| NI | National Income | NNP at Factor Cost (NNP − indirect taxes + subsidies) |
Per Capita Income = National Income ÷ Total Population. It measures the average income per person and is used to compare living standards between countries.
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