Bihar Board Class 10 · Social Science · Matric exam 2027
Chapter 2: State and National Income — notes
The chapter’s 8 parts in the book’s order — the first idea of each and the points Medha Ma’am writes on the board — and the summary at the end. The full lesson and a check question for each part are in the app.
1. What is Income?
Okay, so let's start simple.
- • Income = remuneration for physical/mental work
- • Income = measuring rod of development
- • Rent-land, Wages-labour, Interest-capital, Profit-entrepreneur
- • Developed states: Goa, Delhi, Haryana
- • Less developed states: Bihar, Odisha, Madhya Pradesh
2. Income of Bihar and the Vicious Circle of Poverty
Okay, so now let's talk about Bihar.
- • 41.4% of Bihar below poverty line
- • Vicious Circle of Poverty - Ragnar Nurkse
- • Low income -> Low saving -> Low capital formation -> Less investment -> Low income
- • Goa: High income -> More saving -> More investment -> High capital formation
- • Bihar growth rate 2008-09: 11.03% (2nd after Gujarat 11.05%)
3. What is National Income?
Okay, so let's talk about National Income.
- • National Income = total value of production & services in one year
- • Marshall: net aggregate of commodities + services produced annually
- • Keynes formula: Y = C + I
- • Y = National Income, C = Consumption, I = Investment
4. GDP, GNP and NNP
Okay, so now let's understand three related terms.
- • GDP = value of final goods & services within country in a year
- • GNP = GDP + Net factor income from abroad
- • Net factor income = income from abroad - income to non-residents
- • NNP = GNP - Depreciation
5. National Income - A Historical Perspective
Okay, so let's see how National Income was first measured in India.
- • 1868 - Dada Bhai Naoroji: Per Capita Income Rs. 20
- • 1925-29 - Dr. V.K.R.V. Rao's statistics popular
- • Aug 1949 - National Income Committee, Prof. P.C. Mahalanobise
- • 1951 report (1948-49): National Income Rs. 8,650 crores
- • Per Capita Income Rs. 246.9 (1948-49)
- • After 1954 - Central Statistical Organization set up
6. Per Capita Income
Okay, so let's talk about Per Capita Income.
- • Per Capita Income = National Income / Total Population
- • India (2008-09): Rs. 25,494
- • Bihar (2005-06): Rs. 6,610
- • India (2007): 950 dollar; America: 46,040 dollar
- • Patna - highest in Bihar; Sheohar - lowest in Bihar
7. Measuring National Income and Its Difficulties
Okay, so — how do we actually measure National Income?
- • Methods: Production, Income, Expenditure, Value Added, Occupation
- • Best: Census of Production Method & Census of Income Method
- • Problem 1: Difficulty in collecting data
- • Problem 2: Possibility of double counting
- • Problem 3: Difficulty in measuring value (e.g. sugar price rises from factory to retailer)
8. National Income, Per Capita Income and Development
Okay, so let's connect all this to development.
- • Development needs increase in National & Per Capita Income
- • More production -> more employment -> higher wages -> better standard of living
- • Income must not go only to the rich - need Inclusive Growth
- • Nurse's service to own child - not counted
- • Nurse's service to hospital - counted (payment made)
Summary
Okay, so let's go back over what this chapter taught us. Income is the earning a person gets for their labour. And it's a measuring rod — of a country's development. We saw how Bihar, with the lowest Per Capita Income, is caught in Ragnar Nurkse's Vicious Circle of Poverty. But its growth rate is improving now, which is a good sign. We also looked at National Income — the total value of production and services in a year. Remember Marshall's definition, and Keynes' formula — Y = C + I. And we told apart GDP, GNP and NNP, each a little different from the other. Then we traced the history of National Income estimation — starting with Dada Bhai Naoroji in 1868, right up to the Central Statistical Organization today. We defined Per Capita Income too — National Income divided by Total Population — and compared India's figures with other countries. Finally, we looked at how National Income is actually measured, and the difficulties in doing that. So, what's the big takeaway? National Income and Per Capita Income together show us a nation's real economic development — but only if that growth reaches everyone, through Inclusive Growth. Now tell me — out of everything we covered today, which part felt most interesting to you?
AskMedha · Medha Ma’am — Bihar Board Class 10 Social Science, Chapter 2. Written from the textbook, checked twice.
Questions parents and students ask
- How do I get the "State and National Income" notes as a PDF?
- Press "Save as PDF" — the phone’s print sheet opens; choose "Save as PDF" there. The PDF holds the notes only.
- Where are these notes written from?
- From the chapter’s own textbook text, part by part, in the book’s own terms; a second, independent model then checked every part against the book. The full lesson, a check question for each part and the practice are in the AskMedha app.
The same preparation, with Medha Ma’am — on your phone
Every question of every chapter with its model answer, practice questions in the board’s own shapes, 60 minutes of class a day, written answers marked, a test every Sunday and a WhatsApp report to parents.
Medha Ma’am is an AI teacher, not a live tutor. Every answer is checked twice; a person takes responsibility.