1) The national income figures give no indications of the population, skill and resources of the country. A country may be having high national income but it may be consumed by the increasing population, so that the level of people’s wellbeing or welfare standard of living remains low.
2) High N. I may be due to greater area of the country or due to the concentration of some resources in out particular country.
3) National income does not consider the level of prices of the country. People may be having income but may not be able to enjoy high standard of living due to high prices.
4) High N. I may be due to the large contribution made by a few industrialists
5) Level of unemployment is not taken into account.
6) National income does not care to reduce ecological degradation. Due to excess of economic activity which leads to ecological degradation reduces the welfare of the people.
Hence GNP and economic welfare are not positively related. Income in GNP does not bring about increase in economic welfare
