The Liberalization of economy is to the main factor that led to rapid expansion of Indian exports. Imposition, Recession and Diversification does not contribute to export

National Income of a country can be defined as the total market value of all final goods and services produced in the economy in a year. In expenditure method, the National Income is measured by adding up the four flows, - namely C, I, G, X and M.

Thus, Y = C+1+G + (X-M) + (X- M) Where,

C = Total consumption expenditure

I = Total investment expenditure

G = Total government expenditure

X = Export,

M = Import

Income method measures National Income from the side of payments made to the primary factor of production for their productive services in an accounting year.

The components of factor income are (i) Employee’s Compensation, (ii) Profit, (iii) Rent, (iv) Interest, (v) Mixed income and (vi) Royalty.

Profit, rent, interest and other mixed income are jointly known as operating surplus.

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.