Indian Economy
National Income
More Articles
- National Income
- Highlights of Indian Economy
- Economy & Economics
- Characteristics of Indian Economy
- Agriculture and Land Development
- Economic Planning and Development
- Unemployment and Employment (Programmes and Schemes)
- Trade and Commerce
- New Economic Policy
- Indian Financial System
- Indian Fiscal System
- Money, Banking and Insurance in India
- Tax System
- Industry
- Industrial Performance
- Foreign Trade
- Some Noteworthy Facts
- Some Economic and Financial Terms
- Miscellaneous - Indian Economy
National Income
- National income is the measurement of flow of services and goods in economic system.
- Comparison between National income with National wealth: 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.
NNP at Factor Cost = NNP at market prices – Indirect Taxes + Subsidies = GNP at market prices - Indirect Taxes +Subsidies = National Income.
- 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).
- India used to calculate National Income on the basis of Factor Cost since January 2015. Central Statistics Office, India officially started calculating National Income on the basis of Market Price. Service Tax is an Indirect Tax of Centre and States.
Relationship among different forms of National Products
Where:
X = Income earned and received by nationals within the boundaries.
M = Income received by foreign nationals within the country.
NFI = Net Foreign Income.
GNP = Gross National Product
NNP = Net National Product
NDP = Net Domestic Product
GDP = Gross Domestic Product
MP = Market Price
FC = Factor Cost
D = Depreciation
INT = Indirect Net Tax
National Income in 2020-21 and 2021-22
Provisional Estimates At a Glance, At Constant (2011-12) Prices (Rs. In Crore) |
|||
SI. |
Item |
2020-21 (1st Revised Estimate of 31.05.2022) |
2021-22 (Provisional Estimates of 31.05.2022) |
1 |
GVA at Basic Prices |
1,25,85,074 (-4.8) |
1,36,05,474 (8.1) |
2 |
GDP |
1,35,58,473 (-6.6) |
1,47,35,515 (8.7) |
3 |
GNI |
1,33,68,279 (-7.0) |
1,45,00,812 (8.5) |
4 |
NNI |
1,15,36,004 (-8.7) |
1,25,19,976 (8.5) |
SI. |
Provisional Estimates at Current Prices |
||
1 |
GVA at Basic Prices |
1,80,57,810 (-1.6) |
2,13,49,399 (18.2) |
2 |
GDP |
1,98,00,914 (-1.4) |
2,36,64,637 (19.5) |
3 |
GNI |
1,95,34,226 (-1.7) |
2,32,96,345 (19.3) |
4 |
NNI |
1,71,94,158 (-2.9) |
2,05,29,727 (19.4) |
PE GVA at Basic Prices by Economic Activity (at 2011-12 Prices) (in %) |
|||
S. |
Industries |
2020-21 |
2021-22 |
1 |
Agriculture, Forestry and Fishing |
3.3 |
3.0 |
2 |
Mining and Quarrying |
-8.6 |
11.5 |
3 |
Manufacturing |
-0.6 |
9.9 |
4 |
Electricity, Gas, Water Supply and Other Utility Services |
-3.6 |
7.5 |
5 |
Construction |
-7.3 |
11.5 |
6 |
Trade, Hotels, Transport, Communication and Services related to Broadcasting |
-20.2 |
11.1 |
7 |
Financial, Real Estate and Professional Services |
2.2 |
4.2 |
8 |
Public Administration and Defence and Other Services |
-5.5 |
12.6 |
9 |
GVA at Basic Prices |
-4.8 |
8.1 |
[Source: NSO- MOSPI Report Q4 31.05.2022] |
Fiscal Developments
- With the bouncing back of the economy in the current financial year, the revenue receipts of the central government during April to November 2021 have gone up by 67.2 % (YoY), as against an expected growth of 9.6% in the 2021-22 Budget Estimates (over 2020-21 Provisional Actuals).
- The gross tax revenue during this period has registered a growth of over 50% in YoY terms. This performance is strong not only over the corresponding period of the previous year but also when compared to the pre-pan-demic levels of 2019-20.
- The capital expenditure shows an increasing trend over the first three quarters of 2021-22. During April-November 2021, the capital expenditure has grown by 13.5% (YoY), with focus in infrastructure-intensive sectors like roads and highways, railways and housing and urban affairs.
- The fiscal deficit for April to November 2021 has been contained at 46.2% of BE which is nearly one third of the proportion reached during the same period of the previous two years (135.1 % of BE in April-November 2020 and 114.8 % of BE in April-November 2019).
- With the enhanced borrowings on account of COV-ID-19, the Central Government debt has gone up from 49.1 % of GDP in 2019-20 to 59.3 % of GDP in 2020-21, but is expected to follow a declining trajectory with the recovery of the economy.
- The Provisional Actual figures released by the Controller General of Accounts for 2020-21 show that the gross tax revenue grew by 0.7% (YoY) during 2020-21. The muted tax collections were driven by 11.7% (YoY) decline in direct taxes, which was offset by 12.6% (YoY) growth in indirect taxes. However, Budget 2021-22 envisaged a growth of 16.7% in gross tax revenue (GTR) over the revised estimates (RE) of 2020-21. GTR was estimated at Rs. 22.17 lakh crore for 2021-22 BE, which was 9.9% of the GDP. The budgeted growth in GTR was estimated to be led by 22.4% growth in direct taxes and 11.4% growth in indirect taxes over the revised estimates of 2020-21. Broadly, 50% of GTR was estimated to accrue from direct taxes and the remaining 50% from indirect taxes.
- During the current fiscal year, the corporate tax collections have been buoyant, registering an above 90% growth during April to November 2021 over April to November 2020. [Source. ES2021-22]
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