The National Income Estimation in India is the Responsibility of?

By BYJU'S Exam Prep

Updated on: November 9th, 2023

The National Income Estimation in India is the responsibility of the Central Statistical Organization or CSO. It comes under the Ministry of Statistics and Programme Implementation (MoS & PI) and is headed by a Director assisted by 5 Additional Director Generals. CSO is responsible for carrying out statistical activities in India such as National Income Accounting, training of manpower in theoretical and applied statistics, etc. Calculating the national income of a country helps to understand the short-run performance of the economy as it takes into account the GDP, GNP, NNP, disposable income, etc.

Responsibility of National Income Estimation in India

National Income is the total value of all the final goods and services that are produced in the country during a financial year after depreciation by its residents living within domestic boundaries or outside. It is the Net National Product (NNP) at Factor Cost (FC). The importance of National Income Estimation in India has been mentioned to you below.

  • The National Income Estimation was done by the National Income Committee during the post-independence period. However, it was later on carried out by Central Statistical Organization.
  • The national income is measured using three types, income method, production (value-added) Method and expenditure method.
  • National Income Estimation helps to get a clear picture of the standard of living of the country.
  • It helps to estimate the economic ills of the country and take appropriate measures to uplift the country.
  • The rate of investment and savings that are done in an economy is also dependent upon the national income of the country.

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