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Poverty — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsPoverty6 Marks
Question
"Though India has considerably increased its saving and investment rate since independence, yet this is not adequate enough to give such a high rate of growth that is needed to eradicate poverty". What can be done to solve this problem?
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Answer

More efforts should be made by the government to increase domestic savings and expand inflow of foreign resources for further increasing the rate of investement in the economy. Due to high growth of population, the efforts are neutralised. Keeping this in mind, the government should start new projects which will help in providing more employment opportunities to the people. As a result, national income as well as per capita income will increase. Thus, the ultimate effect will be reduction in poverty.

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