Which of the following is NOT correct with regards to the history of calculating National Income (NI) in India?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Dadabhai Naoroji classified the Indian economy into primary, secondary, and tertiary sectors for NI estimation.
Dadabhai Naoroji's 1868 estimate did not use this modern sectoral classification. Instead, he relied on agricultural output and rough estimates for other incomes.
The other statements are correct:
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Dadabhai Naoroji made the first attempt (colonial era).
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The National Income Committee (1949) was chaired by Mahalanobis.
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V.K.R.V. Rao pioneered the first scientific method (1930s).
National Income is the total monetary value of all goods and services produced within a country in a year. It includes wages, profits, rents, and taxes, minus subsidies, reflecting economic health.