1. Rao’s National Income Methodology:
- Rao’s name is remembered for his pioneering work on the enumeration of national income of India.
- He attempted
- To develop the national income concepts suited to India and developing countries.
- To analyze the concepts of investment, saving and the multipliers is an underdeveloped economy.
- To study the compatibility of the national incomes of Industrialized and underdeveloped countries.
- Rao’s paper on “Full Employment and Economic Development” was one of the earliest contributions in the field of development towards employment.
2. Rao’s views on Industrialization:
- Rao gave the following reasons for low per Capita income and low levels of per capita nutrition in India.
- Uneconomic holdings with sub-divisions and fragmentation.
- Low levels of water availability for crops.
- Excess population pressure on agriculture due to the absence of a large industrial sector.
- Absence of capital.
- Absence of autonomy in currency policy, and in general in monetary matters encouraging holding of gold.
