Answer :

The official agency responsible for estimating the national income of India is known as the Central Statistical Office (CSO). The motive behind this estimation is to help in the purpose of planning and development activities of the government. Product, income, and expenditure methods are used to calculate the national Income in India. This allows us to know more about the characteristics of employment sectors and the types of employment people are occupied in.

To evaluate National income, practical and ideational issues are also taken into consideration such as –


• It becomes difficult to estimate national income due to the lack of reliable statistical data.


• Sometimes the money value of goods and services is calculated twice when it passes through different stages of production which leads to double counting.


• National income doesn’t take into consideration the Services of housewives.


• In the estimation of the National income, production of goods for self-consumption is not included.


• Due to issues like Ignorance and illiteracy, it becomes difficult to collect statistical data.


• The difficulty in calculating the money value of services becomes an obstruction in calculating national income.


• Moreover, consumers rarely keep the record of their expenditure.


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