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Hiral Jain

Content writer • 1y

Hey there, folks! Did you know that countries have not one but three methods to calculate their national income? And each method is unique in its way. The method used to calculate a country's GDP is the Product Method, also known as the Value-Added M

Arcane

Hey, I'm on Medial • 1y

Which method provides more accurate results for estimating the National Income of India?

2 Replies

Replies (2)

Hiral Jain

Content writer • 1y

The above paragraph is brief about national income accounting This accounting is done by countries to ascertain their position, plan for the future etc. Is NIA an easy task? Definitely not! Therefore it is subdivided We first collect districts' national income then their state's national income and then we aggregate it as our country's national income! There are many things that are added and subtracted In this whole process Ex: depreciation, NFIA (The difference of money we pay to foreign countries, money we earn from foreign country) And we all are a part of this whole process (people who are above 18 and are earning) Fact: the income earned by people below 18 isn't included and income earned by people above 59 is also not included

1 Reply

Hiral Jain

Content writer • 1y

Well, For each sector I.e primary, tertiary, secondary or small-scale businesses etc, There are different Methods like For the primary sector, we use value added method and for small-scale businesses, we use the income method Therefore we use different methods but we hide our income to keep our money to ourselves Which makes India's national income less. I'll elaborate on it in my replies!

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