DETAILED ABOUT INDIAN ECONOMY
Economy is financial condition of the different sectors of the country.
The study of economy of any country helps us finding out the financial conditions of the population as well the different working sectors of the economy.
TYPES OF ECONOMY :
It is concerned with how supply and demand interact in individual markets for goods and services.
It is concerned with how the overall economy works. It studies such things as elopement, gross domestic product and inflation:
NATIONAL INCOME OF INDIA
National income is the net value of all the final goods and services produced in a country during a financial year.
It is a flow of concept. In India the financial year is from 1st apirl to march.
NATIONAL INCOME :
Is the measurement of the production power of an economic system in a given time period.
NATIONAL WEALTH :
Is the measurement of present assets available at a given time. It is a stock concept.
NATIONAL INCOME AGGREGATES :
GROSS NATIONAL PRODUCT:
GNP refers to the money value of total output of production of final goods and services produced by the nationals of a country during a given period of time, generally a year.
GNP = C+G+I+(X-M) + (R-P)
Where C= consumption expenditure
G= government expenditure
I= investment expenditure
(X-M) = net exports
(R-P) = net factor income from aboard.
GROSS DOMESTIC PRODUCT(GDP) :
Is the total money value of all final goods and services produced within the geographical boundaries of the country during a given period of time.
GDP = GNP- (R-P)
When, R – P =0 then GDP =GNP.
NET NATIONAL PRODUCT (NNP)
NNP = GNP – depreciation.
PERSONAL INCOME (PI) :
PERSONAL INCOME = NATIONAL INCOME – UNDISTRIBUTED PROFITS OF CORPORATIONS –PAYMENT FOR SOCIAL SECURITY PROVISIONS – CORPORATE TAXES + TRANSFER PATMENTS NET INTEREST PAID BY THE GOVERNMENT.
PERSONAL DISPOSABLE INCOME (PDI) :
When the personal direct taxes are subtracted from personal income, the obtained value is called personal disposable income.
PDI = PI – direct taxes
PDI = consumption + saving.
NATIONAL INCOME :
When nnp is calucated factor cost (FC) it is called national income. This measure is calculated by deducting indirect taxes and adding subsidies in nnp at market price (MP).
NNP fc = NNP mp – Indirect taxes + Subsidies
NNPFC = GNPMP – depreciation – indirect taxes + subsidies.
ESTIMATES OF NATIONAL INCOME OF INDIA :
· In 1868, the first attempt was made by DADABHAI NAOROJO in his book poverty and un-british rule in india. He estimated the per capita annual income to be 20 rupees .
· The first scientific attempt to measure national income in india was made by prof VKRV rao in 1931-32.he divided indian economy in 13 sectors.
DETAILED ABOUT INDIAN ECONOMY Reviewed by Mani Babu on 14:18:00 Rating: