What are the feature of National Income.
The Features of National Income
1. Excessive Dependence on Agriculture:
One striking feature of India’s national income is that a considerable proportion, i.e., 27.8 per cent of the national income is now being contributed by the agricultural sector.
2. Poor Growth Rate of GDP and Per Capita Income:
The annual average growth rate of GDP in India was 5.2 per cent during 1980-92 as compared to 9.1 per cent for China and 5.7 per cent of Indonesia. Again the annual average growth rate of per capita GNP in India was only 3.1 per cent during 1980-92 as compared to 7.6 per cent for China.
In 1994, the per capita income figure in Switzerland was nearly 119 times, in USA about 81 times, in Japan about 105 times the per capita income in India. This low per capita income is also resulted from lower growth rate of national income and higher growth rate of population. The growth rate of GDP at constant price was 6.8 per cent in 1996-97.
3. Unequal Distribution and Poor Standard of Living:
The distribution of national income in India is most unequal . Due to highly skewed pattern of distribution of income, the standard of living of the majority of population of our country is very poor.
4. Growing Contribution of Tertiary Sector
5. Unequal Growth of Different Sectors:
In India different sectors are growing at unequal rates. During the period 1951-97, while the primary sector has recorded a growth rate of 2.9 per cent but the secondary and tertiary sector have recorded a growth rate of 6.3 per cent and 7.1 per cent respectively.
6. Regional Disparity:
Another striking feature of India’s national income is its regional disparity. Among all the states, only six states of the country have recorded a higher per capita income over the national figure. Out of these six states, Punjab ranks highest and Bihar ranks lowest. In 2007-08, the per capita income of Bihar at the bottom was Rs. 12,643 as compared to that of Rs. 50,558 of Punjab at the top, reflecting the ratio at 1: 3.9.
7. Urban and Rural Disparity:
The All India Rural Household Survey shows that the level of income in urban areas is just twice that of the rural areas depicting poor progress of the rural economy.
8. Public and Private Sector:
Another important feature of India’s national income is that the major portion of it is generated by the private sector (75.8 per cent) and the remaining 24.2 percent of the national income is contributed by the public sector.
The Features of National Income
1. Excessive Dependence on Agriculture:
One striking feature of India’s national income is that a considerable proportion, i.e., 27.8 per cent of the national income is now being contributed by the agricultural sector.
2. Poor Growth Rate of GDP and Per Capita Income:
The annual average growth rate of GDP in India was 5.2 per cent during 1980-92 as compared to 9.1 per cent for China and 5.7 per cent of Indonesia. Again the annual average growth rate of per capita GNP in India was only 3.1 per cent during 1980-92 as compared to 7.6 per cent for China.
In 1994, the per capita income figure in Switzerland was nearly 119 times, in USA about 81 times, in Japan about 105 times the per capita income in India. This low per capita income is also resulted from lower growth rate of national income and higher growth rate of population. The growth rate of GDP at constant price was 6.8 per cent in 1996-97.
3. Unequal Distribution and Poor Standard of Living:
The distribution of national income in India is most unequal . Due to highly skewed pattern of distribution of income, the standard of living of the majority of population of our country is very poor.
4. Growing Contribution of Tertiary Sector
5. Unequal Growth of Different Sectors:
In India different sectors are growing at unequal rates. During the period 1951-97, while the primary sector has recorded a growth rate of 2.9 per cent but the secondary and tertiary sector have recorded a growth rate of 6.3 per cent and 7.1 per cent respectively.
6. Regional Disparity:
Another striking feature of India’s national income is its regional disparity. Among all the states, only six states of the country have recorded a higher per capita income over the national figure. Out of these six states, Punjab ranks highest and Bihar ranks lowest. In 2007-08, the per capita income of Bihar at the bottom was Rs. 12,643 as compared to that of Rs. 50,558 of Punjab at the top, reflecting the ratio at 1: 3.9.
7. Urban and Rural Disparity:
The All India Rural Household Survey shows that the level of income in urban areas is just twice that of the rural areas depicting poor progress of the rural economy.
8. Public and Private Sector:
Another important feature of India’s national income is that the major portion of it is generated by the private sector (75.8 per cent) and the remaining 24.2 percent of the national income is contributed by the public sector.
