Difficulty: Easy
Correct Answer: Dadabhai Naoroji
Explanation:
Introduction / Context:
National income estimation was an important tool for early Indian economic thinkers who wanted to measure the real impact of colonial rule. This question focuses on the pioneer who first attempted to calculate India's national income in a systematic way under British rule. Recognising this name is important for both Indian economic history and modern Indian economy sections, because it connects a well known political leader with his economic work on poverty and exploitation.
Given Data / Assumptions:
Concept / Approach:
Dadabhai Naoroji was an early nationalist leader and is often called the Grand Old Man of India. He is famous for his drain of wealth theory, which argued that British rule systematically transferred Indian wealth to Britain. To support his argument, Naoroji made one of the first serious attempts to estimate India's national income using available revenue and trade data. Later economists like V. K. R. V. Rao refined national income estimation with better methods and data, but the credit for the first attempt goes to Naoroji. Therefore, when exam questions ask who first estimated national income in India, Dadabhai Naoroji is the correct answer.
Step-by-Step Solution:
Step 1: Recall the association of Dadabhai Naoroji with the drain of wealth theory and his book on poverty in India.
Step 2: Understand that to argue scientifically about colonial exploitation, Naoroji needed numerical estimates of income and drain.
Step 3: Recognise that this led him to prepare one of the earliest calculations of India's national income and per capita income.
Step 4: Note that later economists such as V. K. R. V. Rao produced more refined estimates, but these came after Naoroji's pioneering work.
Step 5: Conclude that Dadabhai Naoroji is the first to estimate India's national income in a structured way.
Verification / Alternative check:
Checking standard textbooks on Indian economic development confirms this sequence. Most books explicitly mention that the first serious attempt to measure India's national income was by Dadabhai Naoroji in the nineteenth century. They also note that V. K. R. V. Rao provided improved estimates in the twentieth century using more developed statistical techniques. Remembering the chronological order of these names helps confirm that Naoroji, not Rao or Dutt, was the first in this field.
Why Other Options Are Wrong:
R. C. Dutt wrote extensively on economic conditions under British rule, but he is better known as a historian and critic, not as the first national income estimator.
V. K. R. V. Rao made major contributions to national income statistics and planning, yet his work built on earlier attempts such as those of Naoroji.
D. R. Gadgil was an important economist and planner, especially in the context of Indian agriculture and regional planning, but he did not make the first national income estimate.
M. G. Ranade was a social reformer and early economist, but there is no standard reference crediting him with the first national income calculation.
Common Pitfalls:
Students often confuse the first attempt with the first reliable or official estimate. Because V. K. R. V. Rao used more advanced methods, some assume he must have come first. Another confusion arises from focusing only on Naoroji's political work and forgetting his economic analysis. To avoid these mistakes, link Naoroji's name with both the drain of wealth theory and initial national income estimates, and remember that later economists refined, rather than initiated, this line of work.
Final Answer:
The first person to attempt a systematic estimate of India's national income during the British period was Dadabhai Naoroji.
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