In India, on the one hand, Per Capita Income is low and on the other hand, there is large inequality in the distribution of wealth and income, according to Human Development Reports. Lack of opportunity means that its most valuable assets its people is not being fully used. It is appropriate reason of income gap.

Transfer paymentOne-way payment of money for which no money, good, or  service is received in exchange. Governments use such payments as means of income  redistribution by giving out money under social welfare  programs such as social security, old age or disability pensions,  student grants, unemployment compensation, etc. Subsidies  paid to exporters, farmers, manufacturers, however, are not  considered transfer payments. Transfer payments are excluded  in computing gross national product.

Initially NNP_FC was known as National Income but Now NNP_MP is known as National Income.