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Which of the following is not correct with regard to the history of calculating National Income (NI) in India?

1. First attempt to compute NI was made by Dadabhai Naoroji.
2. First official attempt to compute NI was made by P. C. Mahalanobis.
3. Dadabhai Naoroji divided the Indian economy into two parts: primary sector and secondary sector.
4. First scientific method to compute NI was used by Dr. V. K. R. V. Rao.

Correct answer: Dadabhai Naoroji divided the Indian economy into two parts: primary sector and secondary sector.

Solution

Dadabhai Naoroji made the first attempt to estimate national income in India, while P. C. Mahalanobis made the first official attempt and V. K. R. V. Rao used a scientific method. The statement about Naoroji dividing the economy into primary and secondary sectors is incorrect because that classification came much later.

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