National Income Accounting
Concepts Tested in Prelims
National income accounting involves measuring a country's economic output using concepts such as GDP, GVA, GNP, NNP, and their variants at current prices (nominal) and constant prices (real). GDP at constant prices measures real growth by holding prices fixed at the base year, allowing comparison across years. GDP at current prices (nominal GDP) reflects actual market prices and is used as the denominator for ratios like fiscal deficit-to-GDP. GVA = GDP minus net taxes on products; GDP = GVA + net taxes on products.
- Real GDP uses constant prices (base year prices); Nominal GDP uses current market prices
- GVA-based approach: GDP = Σ GVA (by industry) + Net Taxes on Products
- Expenditure approach: GDP = C + I + G + (X – M)
- Income approach: GDP = Compensation of Employees + Gross Operating Surplus + Gross Mixed Income + Net Taxes
- MoSPI is the nodal agency for national accounts statistics in India
● Tracked since February 15, 2026 · last seen March 10, 2026 · updates as the daily brief publishes
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