The first attempt to calculate national income of India was made by Dadabhai Naoroji in 1867 – 68, who estimated per capita income to be ₹ 20. The first scientific method was made by Professor VKRV Rao in 1931-32, but was not very satisfactory.

The Economist Who Scientifically Determined National Income in India: Dadabhai Naoroji

Dadabhai Naoroji, an Indian economist, is credited with being the first person to scientifically determine the national income in India. His work in this field laid the foundation for the study of national income and economic development in the country.

Background:
- Dadabhai Naoroji was born in 1825 in Bombay, British India.
- He was a prominent figure in the Indian National Congress and played a significant role in the Indian independence movement.
- Apart from his political activities, Naoroji also had a keen interest in economics and economic development.

Contributions to the Study of National Income:
- Naoroji's most significant contribution to the field of economics was his book titled "Poverty and Un-British Rule in India," published in 1901.
- In this book, Naoroji introduced the concept of "drain theory," which argued that British colonial rule in India was responsible for the economic exploitation and impoverishment of the country.
- As part of his analysis, Naoroji attempted to estimate the national income of India to determine the extent of economic drain.
- He used various statistical data and economic indicators available at that time to calculate the national income.

Methodology Used:
- Naoroji's methodology for calculating national income was based on the concept of "circulation of wealth."
- He considered four major sources of income in his calculations: agriculture, industry, trade, and services.
- Naoroji collected data on factors such as land revenue, industrial production, foreign trade, and services like transportation, communication, and government expenditure.
- He estimated the income generated from these sources and subtracted the expenses incurred in their production to arrive at the net national income.

Significance:
- Naoroji's work on national income estimation was pioneering in India and laid the groundwork for future studies in this field.
- His analysis of the economic drain caused by British colonial rule sparked a broader debate on economic exploitation and the need for India's economic self-sufficiency.
- Naoroji's work also highlighted the importance of accurate data collection and statistical analysis in economic studies.

Conclusion:
Dadabhai Naoroji's groundbreaking work in estimating the national income of India and analyzing the economic drain caused by colonial rule made him the first economist to scientifically determine national income in the country. His contributions to the study of economics and his nationalist activism have left a lasting impact on India's economic and political history.