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Estimates of National Income in India
- No specific attempts were made for estimating national income in India during pre-independence era. In 1868, the first attempt was made by Dadabhai Naoroji.
He, in his book ‘Poverty and Un-British Rule in India’, estimated Indian per capita annual income at a level of Rs.20. Some other economists followed it and gave various estimates of Indian national income.
- Soon after independence, the Government of India appointed the National Income Committee in Aug 1949 under the chairmanship of Prof. PC Mahalanobis, to compile authoritative estimates of national income. The committee submitted its first report in 1951 and the final report 1954.
According to this report, the total national income of the country was estimated at a level of Rs.8,650 crore and per capita income at a level of Rs.246.90. The final report appeared in 1954 gave estimates of national income during the period 1950-1954. For further estimation of national income, the government established Central Statistical Organization (CSO) which now regularly publishes income national data.
- Recently CSO has introduced a new series on National Income with 1999-2000 as base year. National income includes the contribution of three sectors of the economy primary Sector (Agriculture, Forest, Fisheries, Mining), Secondary Sector (Industries – Manufacturing and Construction) and Tertiary Sector (Trade, Transport, Communications, Banking, Insurance, Real Estate, Community and Personal Services).