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Solution: It is the net value of all the final goods and services produced by the nationals during a financial year. In India, financial year starts from 1st April and ends on 31st March every year. In other words, the total income of a country from the economic activities in a year’s time is known as national income. It includes payments made to all resources in the form of wages, interest, rent and profits. National income can also be defined as the net output of products and services flowing during the year from the country’s productive system in the hands of the ultimate consumers. The growth of National Income aids in knowing the progress of the country.
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