Question

what are the difficulties in calculating national income of india​

Answer 1

Answer:

Explanation:

(i) Lack of Reliable Statistics:

The most serious handicap is the inade­quacy, non-availability and unreliability of statistics. Correct statistical infor­mation regarding agriculture and allied occupations is not available. There is also no information available regarding consumption, expenditure and savings of either rural or urban population. Besides, owing to regional diversities, statistics available about one region cannot be used for another region.

(ii) Absence of Proper Accounts:

Illiteracy of the people and the absence of the practice of keeping accounts is the next. In western countries, economic statistics are collected directly from individuals and enterprises. This is obviously not possible in India. Moreover, Indian people are by tradition suspicious and do not co-operate in the collection of data.

(iii) Inability to Estimate:

Besides, most of the Indian producers are not capable of working out the exact quantity and the value of their products. Thus, “an assessment of output, produced by self-employed agriculturists, small producers and owners of household enterprises in the un-organised sector, would require an element of guess work.”