The national income of India was calculated first by?
VerifiedAnswer: Dadabhai Naoroji
Explanation:
Dadabhai Naoroji, fondly known as the "Grand Old Man of India," holds the distinction of being the first person to calculate India's national income. This remarkable feat was accomplished in 1867-68 when he presented his findings in his famous work titled "Poverty and Un-British Rule in India."
Naoroji's groundbreaking work was driven by his desire to expose the economic exploitation of India under British colonial rule. Through his detailed analysis, he estimated India's per capita income to be around Rs. 20 per year, which was extremely low even by the standards of that time. His calculations revealed the stark reality of India's economic condition and became a powerful tool in the struggle for independence.
What made Naoroji's work particularly significant was his development of the famous "Drain Theory." This theory demonstrated how wealth was systematically transferred from India to Britain through various means including salaries paid to British officials, profits from British companies, and other forms of economic extraction. His calculations showed that approximately 2-3% of India's national income was being drained annually to Britain.
Naoroji used various sources for his calculations including government records, trade statistics, and revenue data. Despite the limitations of available data during the colonial period, his methodology was remarkably systematic and thorough for its time. He analyzed different sectors of the economy including agriculture, manufacturing, and trade to arrive at his estimates.
The importance of Naoroji's work extended far beyond mere academic exercise. His calculations provided concrete evidence of India's impoverishment under British rule and became a rallying point for the independence movement. Leaders like Mahatma Gandhi and other freedom fighters frequently cited his work to highlight the economic injustices of colonial rule.
After independence, more sophisticated methods of calculating national income were developed by economists like Professor P.C. Mahalanobis and Dr. V.K.R.V. Rao, but Dadabhai Naoroji's pioneering effort remains historically significant as the foundation stone of India's national income accounting. His work laid the groundwork for understanding India's economic structure and continues to be studied as an important milestone in Indian economic history.
