Q.State any four difficulties involved in the measurement of national income in India.

In a developing economy, much output never enters the market and many producers keep no records, which makes accurate estimation genuinely hard. …

National-income measurement in a developing economy such as India faces several practical difficulties. Four important ones are:

1. Non-monetised transactions. A large share of output — subsistence farming, goods produced and consumed within the household, unpaid family labour — is never sold in the market and is therefore hard to value and easily undercounted.
2. Large unorganised (informal) sector. Small farmers, petty traders and self-employed workers keep little or no written account of their income and output, so their contribution must be estimated rather than directly recorded.
3. Risk of double counting. Distinguishing final goods from intermediate goods is not always straightforward; a careless count can include the same value more than once and inflate national income. …

Merely listing the points without a one-line explanation each usually loses marks in an HSC answer. Also avoid mixing up 'difficulties in measurement' with 'limitations of nati …