Question

Which is not added in the calculation of national income of india?

Answer 1

Children and retire aged people are not in the part of national income.

Answer 2

Unemployment allowance is not added in the calculation of national income of India.

• The total amount of products and services generated within a country during a specific period time, such as a year, is referred to as national income. It is the total of a country's factor income, which includes wages, interest, rent, and profit, received by the country's factors of production, which include labour, capital, land, and entrepreneurship.

The following are some of the important elements that are included or excluded from national income:

• Yes, it will be included in the national income because it is part of capital formation and contributes to the production of commodities and services in the economy.
• Yes, if the employer provides free medical services or provides free boarding and lodging to a domestic servant. Because these free services are part of the pay for employees, they will be counted in national income.
• Employer contributions to the provident fund OR value of interest foregone on loans supplied by the employer to an employee: Yes, as it is part of the compensation to employees, it will be included in the national income.
• Unemployment Benefit: This benefit is offered to those who are unemployed. As a result, this is merely a transfer payment that is not included in National Income.

Hence, the Unemployment allowance is not added in the calculation of national income of India.

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