In this article we will discuss about the difficulties for measuring India’s National income. National income is the net value of all goods and services (national product) produced annually in a country. It can be measured in three ways: (i) Firstly, it can be taken as the domestic product/output of goods and services produced by enterprise within the country. This [...]
The following points highlight the four major difficulties faced in calculating the national income of a country. The difficulties are: 1. Lack of Reliable Data 2. Existence of Non-Monetized Sector 3. Difficulties in the Classification of Working Population 4. Illegal Income. Difficulty # 1. Lack of Reliable Data: The reliability of data relating to national income estimation is often questioned [...]
The following points highlight the eight major difficulties in the measurement of national income. The difficulties are: 1. Prevalence of Non-Monetized Transactions 2. Illiteracy 3. Occupational Specialisation is Still Incomplete and Lacking 4. Lack of Availability of Adequate Statistical Data 5. Value of Inventory Changes 6. The Calculation of Depreciation 7. Difficulty of Avoiding the Double Counting System 8. Difficulty [...]