Question
What are the economic effects of poverty?
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Answer
Economic effects of poverty:
- Low national income: As a substantial number of people are poor, their income, saving, and investment are inadequate. This results in low capital formation.
- Adverse effect on production: Since the capital for modernization is not available, the farmers continue with the outdated methods. Similarly, the industry does not have funds for modernization.
- Misallocation of resources: To help the poor, the government spends a huge amount on welfare activities. This restricts the allocation of resources for productive activities.
- Low standard of living: Due to low per capita income and low per capita consumption, people are forced to live in slums. This is reflected in the low standard of living.
- Malnutrition and starvation: Poor people can not afford a balanced diet due to low income. They do not get the minimum calories from their diet.
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Agriculture is the backbone of the Indian economy to bring about an increase in agricultural production, various programmes have been introduced through economic planning; like the expansion of irrigation facilities, infrastructural development, improving health & nutrition of the rural masses, increasing rural employment, etc.
Agriculture is the backbone of the Indian economy to bring about an increase in agricultural production, various programmes have been introduced through economic planning; like the expansion of irrigation facilities, infrastructural development, improving health & nutrition of the rural masses, increasing rural employment, etc.
Traditional agriculture relies heavily on indigenous inputs. Such as the use of organic manures, seeds, simple ploughs, bullocks & primitive agricultural tools.
Modern Technology in agriculture consists of Chemical fertilizers, pesticides, improved varieties of seeds including hybrid seeds, extensive irrigation, use of electricity, agricultural machinery, etc.
Modern technology has increased agricultural mechanization. As a result, industries supplying modern farm inputs have grown at a rapid rate. It has increased the demand for agricultural credit. It has improved productivity. So farmers have become market-oriented.
But, the effects of modern technology prevail only in certain selected areas & the rest of the country is not yet suitable for modern technology. Therefore, low-cost technology has to be introduced for overall rural development.
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QU 2. What is the difference between traditional and modern technology?
QU 3. Why did farmers become market-oriented?
QU 4. Why is it necessary to introduce low-cost technology?
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