National Income

National Income

The National Income of a country is the total net earnings acquired from the production of goods and services in the country which is calculated over a period of time. It basically consists of wages, salaries, rent profits, and interest.

The formula for National Income is as follows :
      NI = C + I + G + (X - M)
Where,
      C = Total Consumption expenditure
      I = Total Investment expenditure
      G = Total Government Expenditure
      X = Exports
      M = Imports

Relationship among different forms of National Products

» The national wealth is the measurement of present assets available on a given time, while the National income is the measurement of the production power of economic system in a given time period.
» The figures of National income are based on the financial year (i.e. from 1st April to 31st March).
» The base of one year is taken for calculating National income, as all the seasons come in a year.
» The data of estimation of India's National income are issued by Central Statistical Organisation (CSO).