National Income in India is Estimated By ____.

Answer: (2) Central Statistical Organization (CSO)

Explanation:

The Central Statistical Organization (CSO) was the agency responsible for estimating National Income in India. In 2019, the Central Statistical Organization (CSO) and the National Sample Survey Organisation (NSSO) were merged to form the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI). 

• Today, the National Statistical Office (NSO) compiles and releases official National Income, GDP, GNP, and per capita income statistics. 
• National Income represents the total monetary value of all final goods and services produced by a country's residents during a financial year. It is an important indicator of economic growth, economic development, public policy, budget planning, and resource allocation in India.
• The Planning Commission (1950) was responsible for preparing India's Five-Year Plans.
• The Finance Commission recommends the distribution of financial resources between the Union and the States.
• Major National Income Measurement Methods: National Income is estimated using three standard methods:
  • Production Method: Measures value added at each stage of production.
  • Income Method: Adds wages, rent, interest, profits, and other factor incomes.
  • Expenditure Method: Calculates total expenditure using the formula GDP = C + I + G + (X − M), where C is consumption, I is investment, G is government expenditure, and X − M is net exports.