Solution:

• In India, National Income is calculated by the combined method.

• It combines two methods i.e product or output method and the income method.

• This is done to overcome the problem of deficiency of statistics.

• The product method endeavours to find out the net contribution to national income of all producing units.

• The income method adds up income and payments accruing of factors of production.

• This method is used in the tertiary sector like government services banking etc and also in the commoity sector if output data is not available.