National income, savings, and capital formation are key indicators of a country's economic health and development. These metrics help in understanding the overall economic activity, the ability of an economy to save, and its potential to invest in future growth. Understanding these concepts is crucial for policymakers, economists, and businesses as they provide insights into the economic well-being and potential for sustainable development.

National income is the total value of all goods and services produced by a country over a specific period, typically one year. It is a comprehensive measure that reflects the economic performance of a nation and provides a snapshot of its economic health. National income includes the sum of all wages, profits, rents, and any other forms of income generated within a country.

National income can be measured in several ways:

1.Gross Domestic Product (GDP): This is the most common measure of national income. GDP is the total market value of all final goods and services produced within a country in a given period.

2.Gross National Product (GNP): GNP is the total value of all goods and services produced by the residents of a country, including the income earned from overseas investments, minus the income earned by foreign residents within the country.

3.Net National Product (NNP): NNP is GNP minus depreciation. Depreciation accounts for the wear and tear on the country's capital goods.

4.Net National Income (NNI): NNI is NNP minus indirect taxes plus subsidies. This measure provides a more accurate reflection of the net earnings of a nation.