Download - 49830519 Ppt Economics National Income 1
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Presentation onTopic National income analysis
Presented By
J&T
JYA
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Contents
Introduction To Topic
Introduction To Concern
Objectives Of The Study
References
Data Accumulated
Conclusions
Recommendations
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Introduction To Topic
National income refers to the market valueof the goods & services produced by aneconomy during the period of one year,
without duplication. National income is the money value of all
final goods & services produced in acountry during a period in one year.
Low income>low savings>lowinvestment>low productivity>low income
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Introduction To Concern
National income is a part of macro economics
Macroeconomics is the study of economy as awhole. The study of economy as a whole iscarried out by analyzing the behaviour of &interaction between macroeconomics variablesincluding national output (GDP &GNP),aggregate employment,the general price
level,aggregate consumption,savings &investment,price level & economic transactionswith the rest of the world.
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Objectives Of The Study
To become aware about the methods ofcalculating national income.
To become aware about national income
concept as a whole. To know the national income of our
country.
To know the growth rate of our country.
To become aware about the history ofnational income.
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Data Accumulated
History of National income concept
In 1876 , Dadabhai Naroji was the firstperson to prepare estimates of nationalincome & per capital income for the year
1867-68.Calculation of per capital income
Per capital income = National income of year
2009 divided by Population of 2009.
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Estimates of national income & per capital
incomebefore independenceEstimated by Yr.Of Estimate Natitonal Income(Rs Crore)
Per Capital
Income(Rs)
Dadabhai naroji 1867-68 340 20
Wadia & joshi 1913-14 1067 44
Shah & khambata 1921-22 2364 74
V.K.R.V. Rao 1931-32 1689 62
Ministry of commerce 1945-46 6234 198
(govt.of india)
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Comparison of per capital income with othercountries
Country Per Capital Income(us dollars)year 2006Usa 44970
Uk 40180
Japan 38410
China 2010
Srilanka 1300India 820
Pakistan 770
(Source:world development report,2007)
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Methods of Measuring National Income
Product or Value Added Method or NetOutput Method
Income Method
Expenditure Method & Commodity FlowMethod
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Importance Of Measure National Income
o It helps us to estimate the level ofeconomic development of nation.
o It is used in computing per capital income.
o It is used for analysing various phases ofbusiness cycles.
o It is used for framing various policies by the
government.o It helps in comparing economic growth of
our country with other nations.
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Difficulties In Measuring National Income In India
Non monetised sector
Lack of distinct differentiation of economicactivities
Black money
Inter regional differences
Conceptual problems
Mass illiteracy
Non availability of data about certain incomes
Difficulties of sampling technique
Lack of skilled personnel to collect data &
prepare estimates
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What National Income Does Not Measure?
Income from illegal activities likeSmuggling,Gambling etc
Income from non economic activities like
domestic work by Housewives,work donewithout remuneration.
Black Moneyi.e.income which is not reported
to income tax authorities, and on whichincome tax is not paid.
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Measures Of National Income GNP (Gross national product)
GNP is defined value of all final goods & services produced in
one year but plus income earned abroad by the nationals &minus income earned locally by foreigners.
GDP (Gross domestic product)
In case of GDP,minus income earned abroad by the nationals
& plus income earned locally by foreigners from the total valueof domestically produced goods & services.
NNP (Net National Product)
The NNP gives the measure of net output available for
consumption by the society (including consumers,producers &the government).NNP is the real measure of the nationalincome.NNP=NNI(Net National Income)
o NDP (Net Domestic Product)
NDP = NNP less net income from abroad
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ercen age ra e o grow o na onaincome at constant prices
Plans percentage growth of national income
First plan(1951-56) 3.6Second plan 4.1
Third plan 2.5
Fourth plan 3.3
Fifth plan 5.0
Sixth plan 5.4
Seventh plan 5.8
Eight plan 6.7
Ninth plan 5.5
Tenth plan 7.8
Eleventh plan (target)(2007-2012) 9.0
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Growth Rate Of GDP Of Different Nations(Annual Average In Percentage)
Country 1969-70 2005-06Usa 4.3 2.4
Japan 10.9 2.4
Germany 4.4 2.9China 5.2 10.1
Srilanka 4.6 6.6
Pakistan 6.7 4.1India 3.4 7.7
World 5.0 2.8
(source:world development report,2007)
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National Income-Industrial Origin
Central statistical organisation has divided theeconomy into three basic sectors:
Primary sector
(Agriculture,forestry,fishing,mining & Quarrying)
Secondary sector
(Manufacturing,power generation,gas & watersupply)
Tertiary sector/service sector
(1. Transport,Communication & Trade2. Banking,Insurance & Computer Software3.Public Administration,Defence & Other
Services 4. External Trade)
f l f d
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Causes Of Low National Income Of India
Economic causes
Low rate of saving & investment
Backward technology
Rapid increase in population
More dependence on agriculture
Inadequate industrial development
Inadequate progress of transport & power
Unbalanced growth of different regionsSocial causes
(Illiteracy,social institutions,fatalism)
Political causes
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Conclusions
National income of our country is less,comparisons with different nations.
our country is under developed economy,on growing stage.
Various causes is a hurdle in the successof our country.
National income represents the growth &development of economy.
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Recommendations
Increase in rate of saving & investment
Modern technology Development of agriculture
Development of industries
Development of transport & power More social welfare services
Growth of foreign trade
Proper Use of natural resources Education
Development of banking & insurance
Political stability
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References
Managerials economics by D N Dwivedi
Indian economy by T.R. Jain
Managerial economics (kalyani publisher) Managerial economics by T.R.Jain