Trends in growth of national income

 Trends in Growth of National Income 

Erratic Growth From 1950-51 to 2010-11, there was no steady and permanent increase in national income.  For example, out of these 60 years, there were 13 years in which the rate of growth in national income was less than the rate of growth of population. 

 Hence the per capita income declined in these years.  In addition, there were 16 years in which the level of per capita income was lower than the level of per capita income in any previous year.  The subsequent 5 years were such in which the level of national income also declined. 

   ☆Current price

 From the study of these data it becomes clear that the growth is irregular.  The incidence of growth rate increases with the fluctuations of agriculture The growth rate also decreases or increases depending on the increase or decrease in agricultural production. 

constant prize

 It is argued in this regard that it is natural in all agro-based economies.  But it is worrying that even after huge investments in the schemes, the uncertainties prevailing in the agriculture sector have not been mitigated. 

private income

 If the monsoon is not favorable, then even today the agricultural sector becomes chaotic and the development of other areas is adversely affected.

Net national product

Accelerating the rate of economic growth Over time, India has been able to accelerate the rate of economic growth.  The compound rate of growth of national income in the first 30 years of planning was 3.4% per annum. 

Expenditure method

 Since 1980-81, the national income has increased by 5.5% per year.  But the main reason for the increase in the economic growth rate is the rapid expansion of the service sector.  Apart from this, only a few states of the country have benefited from rapid economic growth and the rest of the states have remained very backward.  

income method

In the 1980s and 1990s, inequality in national income increased, that is, the increased income remained concentrated only in the affluent classes, while the people of the weaker sections did not get the full benefit of the rapid growth rate.