Indian Statistics – Long Notes
I. National Income
1. Meaning of National Income
National income refers to the aggregate monetary value of all goods and services produced
within a country during a specific period, typically a financial year. It is a crucial indicator of
the economic performance and standard of living of a nation.
2. Concepts of National Income
Some important concepts are:
• Gross Domestic Product (GDP): Total value of all goods and services produced within
the country’s borders in a year.
• Gross National Product (GNP): GDP + Net income from abroad (income earned by
residents from foreign investments – income earned by foreigners from domestic
investments).
• Net National Product (NNP): GNP – Depreciation (wear and tear of capital goods).
• National Income (at factor cost): NNP at market prices – Indirect taxes + Subsidies.
• Per Capita Income: National Income ÷ Total population. It indicates the average
income of a citizen.
3. Methods of Measuring National Income
There are three primary methods:
(i) Production (Output) Method
• Measures the value of final goods and services.
• Sectors: Agriculture, Industry, Services.
• Avoids double counting by excluding intermediate goods.
(ii) Income Method
• Adds incomes earned by individuals and businesses:
o Wages and salaries
o Rent
o Interest
o Profits
o Mixed income (of self-employed)
(iii) Expenditure Method
• Total spending on final goods and services:
o Private consumption
o Government expenditure
o Investment
o Net exports (Exports - Imports)
4. Difficulties in Measuring National Income in India
• Large informal/unorganized sector.
• Non-monetized transactions (especially in rural areas).
• Lack of accurate data and multiple occupations.
• Tax evasion and black income.
• Illiteracy and ignorance among data providers.
5. Importance of National Income Statistics
• Helps in economic planning and policy formulation.
• Indicates growth rate and development.
• Facilitates international comparisons.
• Determines standard of living.
• Aids in budget preparation and sectoral analysis.
6. National Income Estimation in India
• Prepared by National Statistical Office (NSO) under the Ministry of Statistics and
Programme Implementation (MoSPI).
• National Accounts Statistics published annually.
• India adopted United Nations System of National Accounts (UNSNA) for
international comparability.
II. Population Census
1. Meaning of Population Census
A Population Census is the systematic and complete enumeration of the population of a
country at a particular point in time. It includes demographic, social, and economic
information of every individual.
2. History of Census in India
• First full census: 1872 (non-synchronous).
• First synchronous census: 1881.
• Since then, conducted every 10 years without interruption.
• The 2011 Census is the 15th National Census and the 7th after Independence.
• The 2021 Census was delayed due to the COVID-19 pandemic.
3. Authority Conducting the Census
• Conducted by the Office of the Registrar General and Census Commissioner, India,
under the Ministry of Home Affairs.=
4. Key Features of the Census
• Conducted in two phases:
1. House listing and Housing Census
2. Population Enumeration
• Data collected includes:
o Age, sex, marital status
o Education and literacy
o Occupation
o Religion and language
o Housing conditions
o Migration and disability status
5. Importance of Census Data
• Basis for policy formulation and economic planning.
• Used for allocation of resources to states and local bodies.
• Helps in election delimitation and reservation in legislative bodies.
• Essential for planning in sectors like health, education, housing, employment.
• Supports research and academic studies.
6. Demographic Indicators from Census
Some indicators derived from the census:
• Population Growth Rate
• Density of Population
• Sex Ratio
• Literacy Rate
• Urban-Rural Ratio
• Dependency Ratio
7. Population Census 2011 – Key Highlights
• Total Population: 1.21 billion (121 crore)
• Literacy Rate: 74.04%
• Sex Ratio: 943 females per 1000 males
• Most populous state: Uttar Pradesh
• Least populous state: Sikkim
• Highest literacy: Kerala (94%)
• Lowest literacy: Bihar (63%)
Conclusion
Both National Income and Population Census are fundamental pillars of Indian statistics.
While national income provides insights into the country’s economic status, the census
provides a demographic snapshot. Together, they help in informed decision-making, public
policy, and socio-economic development.
