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Concept of National Income

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Concept of National Income:

National Income is one of the important subject matter of macroeconomics. National income is a composite measure of all economic activities such as production, distribution, exchange and consumption, but is also an objective indicator of economic welfare of the people in a country.

In India, establishment of the National Income Committee (NIC) in 1949 marked the beginning of Government efforts for regular compilation of National Income estimates. At present, Central Statistical Organisation (CSO) compiles and publishes data on national income and allied aggregates every year. 

Definitions of National Income :
Following are some of the important definitions of national income :
1) National Income Committee (NIC) :
The National Income Commitee was appointed by the Government of India in August 1949 with Prof. P. C. Mahalanobis as Chairman and Prof. D. R. Gadgil and Dr. V. K. R. V. Rao as the members.

According to NIC “A national estimate measures the volume of commodities and services turned out during a given period counted without duplication.”
2) Prof. A.C. Pigou :
“National dividend is that part of objective income of the community including of course income derived from abroad which can be measured in money.” 

Additional Information:

The National Sample Survey Office (NSSO) merged with the Central Statistical Office (CSO) to form the National Statistical Office (NSO). On 23rd May 2019, the Government of India has approved the merger of NSSO and CSO.

Earlier known as the Central Statistics Organisation of India, CSO is responsible for the coordination of statistical activities in India, and evolving and maintaining statistical standards.

The CSO is headed by the Director-General who is assisted by Five additional Director-Generals and four Deputy Director-Generals, six Joint Directors, seven special task officers, thirty deputy directors, 48 assistant directors, and other supporting staff.

The National Sample Survey Office (NSSO), formerly called the National Sample Survey Organisation was the largest organization in India conducting periodic socio-economic surveys.The National Sample Survey Office used to work under the Ministry of Statistics of the Indian  government until May 2019. On 23rd May 2019, the Indian government passed the order to merge the NSSO with the Central Statistics Office (CSO) to form the National Statistical Office (NSO). The Government stated that the NSO will be headed by the "Ministry of Statistics and Programme Implementation (MOSPI)".

MoSPI said the restructuring will “streamline and strengthen the present nodal functions” and “to bring in more synergy by integrating its administrative functions within the ministry.”

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Shaalaa.com | Macro Economics - National Income Part 1

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Macro Economics - National Income Part 1 [00:10:42]
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