Vol. 1, Issue 4, Part E (2015)

Abstract
National income is the sum total of money value of all the final goods and services produced in a country during the period of one year. The national income, thus comprises of all the firms and factories, the shops and markets, the banks and financial agencies, the offices and the other institutions, or in brief all the occupations where people work and produced either goods or services and use the income thus earned, for consumption saving and investment. For making national income in India, the entire economic activity is classified into three major sectors i.e. primary sector, secondary sector, tertiary sector. The growth rate of national income in India has neither be rate often uniform nor study during five year plans. During the first and the second five year plan annual growth rate of national income was 4.2%, but it plunged to 2.6% in third plan. The sixth plan was a grand success and the national income increased by 5.4%.During the eighth plan national income recorded a high growth rate of 6.7% which was the highest achievement in any of the plan gone by. The eleventh plan however showed a better performance and achieved 7.7% annual growth. One thing that clearly emerged from the growth trend in national income is that whereas during the first three decades of development viz. 1951-81, the growth rate was low and revolved around 3.5%, from 1981 onwards the economy has entered a relatively higher growth phase.