National income at constant prices means:

Key Points

• Income estimated at base year prices refers to national income calculated using the prices of a specific base year, which helps in eliminating the effects of inflation and provides a more accurate measure of real income over different periods.
• This method allows for a consistent comparison of economic performance over time by adjusting for changes in price levels.
• It is also known as national income at constant prices or real national income.
• Using base year prices helps in understanding the actual growth of the economy without the distortion caused by fluctuating prices.

Additional Information

• The concept of national income at constant prices is crucial for economic analysis and policy-making.
• It helps in understanding the real growth of different sectors of the economy.
• The base year is periodically updated to reflect more recent economic conditions and to provide a more accurate measure of real economic performance.
• National income is a vital indicator of the economic health of a country and is used for planning and development purposes.
• Organizations like the Central Statistical Office (CSO) in India are responsible for calculating and publishing national income data.