UPSC Prelims 1996·GS1·economy·basic concepts

Assertion (A): Though India’s national income has gone up several fold since 1947, there has been no marked improvement in the per capita income level. Reason (R): Sizeable proportion of the population of India is still living below the poverty line. In the context of the above two statements which one of the following is correct?

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  1. ABoth A and R are true and R is the correct explanation of A
  2. BBoth A and R are true but R is not a correct explanation of ACorrect
  3. CA is true but R is false
  4. DA is false but R is true

Explanation

Assertion A is true because while India's total national income has grown significantly, the rapid growth in population has kept the per capita income increase relatively modest compared to developed nations. Reason R is also true because a significant portion of the Indian population continues to live below the poverty line despite overall economic growth. However, B is the correct choice because R does not explain A. Per capita income is a simple mathematical average calculated by dividing total national income by the total population. The existence of poverty is an issue of income distribution and does not mathematically determine the per capita income level itself. Therefore, while both statements are factually correct, the presence of poverty is not the reason why per capita income has not shown a marked improvement; the primary reason for that is the high rate of population growth.
economy: Assertion (A): Though India’s national income has gone up several fold since 1947, there has been no marked improvement
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