India Income Estimates

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  • Topic: Estimator, Per capita income, Estimation
  • Pages : 2 (477 words )
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  • Published : July 2, 2012
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who & how N.I estimated in India from time to time? (Muni) Write the history of national income estimates in India?
What are the estimates of National Income before and after independence? Ans:

Estimations of National Income before independence:

Several estimates of National Income were prepared during the British period. The 1st estimate of national income was prepared by Dadabhai Nauroji for the year 1867 - 68. Accordingly the N.I and Per Capita Income of the country were Rs. 340 crores & Rs. 20 respectively.

Notable among the estimators before independence were William Digby (1899), Findlay Shirras (1911, 1922 & 1931), Shah and Khambatta (1921), Dr. V.K.R.V. Rao (1925-29 & 1931-32) & R.C Desai (1931-40). To estimate National Income they have estimated the value of the output of the agricultural sector and then added a certain percentage as the income of the non-agricultural sector.

The credit for the 1st scientific estimate of N.I goes to Dr. V.K.R.V. Rao. He made use of a combination of census of output and census of income methods. Accordingly the N.I and Per Capita Income of the country were Rs. 1400 crores & Rs. 120 respectively.

J.R. Hicks, M. Mukherjee and S.K. Ghosh have calculated the rate of growth of per-capita income. The result presents a picture of near stagnation with a growth rate of 0.5% for 1860 - 1945.

Post independence period estimates:

National Income Committee Estimates

After attaining independence, “National Income Committee” was appointed in August 1949, with Prof. P.C. Mahalnobis as chairman, Dr.V.K.R.V Rao & D.R. Gadgil as members to estimate National Income. They used Product Method in Primary and Secondary sector and Income Method in tertiary sector. A report of National Income...
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