Non Profit Institutions (NPIs) sector is a diverse sector and cutting across all the institutional sectors of an economy with no widely accepted operational definition and having limited data sources. This sector is different from all institutional sectors – Government, Industries and households, yet their purposes may be similar – welfare activities of Government, promotion of interests of some industry or association, benefit of household. The very typical nature of NPIs lies in the fact that they are different from the Market and the State, therefore the treatment in the national accounts pose a special problem of estimation of output, value added and consumption. This paper attempts to list out the underlying issues relating to measurement of NPISHs in national accounts.
