There are only three methods are using for calculating of national income i.e., value added method, income method and expenditure method.

When new house is given on rent the factor income will increase. Hence, it will be part of National Income. Rests are part of Transfer Payment.

The difference between Gross National Product and Depreciation is called Net National Product (NNP). NNP at factor cost is the net output evaluated at factor prices. It includes income earned by factor of production through participation in the production process, such as wages and salaries, rents, profits etc.

It is also called National Income. NNPFC = NNPmp – Indirect taxes

+ Subsidies = National Income. But now NNP_MP is National Income

The Liberalization of economy is to the main factor that led to rapid expansion of Indian exports. Imposition, Recession and Diversification does not contribute to export

In India, on the one hand, Per Capita Income is low and on the other hand, there is large inequality in the distribution of wealth and income, according to Human Development Reports. Lack of opportunity means that its most valuable assets its people is not being fully used. It is appropriate reason of income gap.

Income which is not produced by any production process  is called transfer income. It is generally money received by  an individual or family from the state or other body, often the  pension or unemployment benefit.

Initially NNP_FC was known as National Income but Now NNP_MP is known as National Income.

The average income of the people of a country in a particular year is called Per Capita Income for that year. So, it is National Income divided by population.

Per Capita Income

= National Income/Total population of the country

Though Per Capita Income is more reliable than GNP for many particular purpose.