Question

First scientific method to calculate national income

Answer 1

Explanation:

The first attempt to calculate National Income of India was made by Dadabhai Naoroji in 1876. He estimated national income by first estimating the value of agricultural production and then adding a certain percentage as non-agricultural production. This was however a non scientific method.

The first person to adopt a scientific procedure in estimating national income was Dr.V.K.R.V.Rao In 1931. He divided the Indian economy into two parts

1] Agricultural sector which included agriculture, forests, fishing and hunting.

2] Corporate sector which included industries, construction, business, transport and public services.