Page 29 - DECO303_INDIAN_ECONOMY_ENGLISH

Indian Economy

Notes Problems in Industrial Sector: Data concerning output, cost, etc. are accessible only in big
units. The small units do not preserve these facts appropriately. The village money lenders
and indigenous bankers preserve absolute secret of their and they do not furnish correct
information.
Non-applicability of a Uniform Formula: In a big country where extensive differences
and district variations, an unchanging method cannot be applied. The data of one region
cannot be realistic to another region with minor alteration. Every region would be a
separate entity requiring particular method suited only to that region.
Double-counting: The mistake of double-counting is additional obstacle to be avoided in
the calculation of national income.

Inefficient Data Collection: The machinery for gathering statistical data may not be well-
organized. The investigators, preparation of adhoc figures, making sample surveys, etc.

2.7 Uses of National Income Statistics

Let us now discuss the uses of national income statistics in this section. These are as below:

National income figures support governments in preparation, policy making, preparation
of budgets and estimating the level of economic activity.
Formulation of Economic Policies: National income statistics are valued instruments of
economic analysis and a controller to economic strategies to be followed. It is more useful
in context of planning and formulation of accurate plans.

Studying Economic Structure: It gives an idea of the structure of the economy. It benefits
to make inter-sectoral contrasts and to study the rate of development of the economy. The
development of national income is a key of the growth of the creative capacity of an
economy.
Inter-sectoral Comparisons: It supports to study inter-sectoral growth. Such associations
are useful. Share of numerous sectors can be calculated to find out structural defects and
faults of the economy.

Indicator of Economic Welfare: It enables us to study per capita income or per capita
drinking which are overall displays of economic growth. But it is not co-operative in
revealing distribution of income in the society.

Making International Comparisons: National income approximations allow us to mark
international comparisons and standard of living of people.
Contribution to International Institutions: It displays the capability of a republic to bear
certain common weight of global institutions like the U.N.O.

Self Assessment

Fill in the blanks:
9. …………………… carried the largest number of international passengers from India in
2012.
10. L&T Metro Rail (Hyderabad), an arm of Infrastructure Company L&T has granted a
` …………………… project to Korean technology company Samsung SDS Company.

11. …………………… are a dominant mode of transportation in the country today.
12. …………………… is one of the busiest and largest rail networks in the world.

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