Q.State any four major difficulties faced in measuring the national income of India.

Key difficulties include non-monetised subsistence output, a large unorganised sector, the risk of double counting, and the approximate nature of depreciation estimates. …

National income estimation faces several genuine practical obstacles, of which any four may be cited:

1. Non-monetised (subsistence) transactions — a sizeable part of output, especially in rural India, is consumed directly by the producer or exchanged by barter and never passes through a market price, making it hard to value in money terms.
2. Large unorganised sector — small traders, household enterprises and informal workers rarely keep proper accounts, so their output/income has to be estimated rather than directly recorded, introducing error.
3. Risk of double counting — unless intermediate consumption is carefully separated from value added at every production stage, the same output can be counted more than once, inflating the estimate. …