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Q70 (IAS/1996) Economy › Growth, Development, Poverty & Employment › Income and development levels Answer Verified

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 ?

Result
Your answer: —  ·  Correct: B
Explanation

Both Assertion and Reason are factually correct: historically India’s aggregate national income rose over decades while per capita income showed little improvement for a long period (especially up to the early 1980s), and a sizeable proportion of the population remained below the poverty line [1]. However, the Reason does not correctly explain the Assertion. Per capita income is an average (national income divided by population) and its sluggishness is better explained by population growth, slow early aggregate growth and unequal income distribution rather than merely the existence of a large poor population. Moreover, economic growth has been the principal driver of poverty reduction, implying poverty prevalence is an outcome related to growth rather than the primary cause of stagnant per capita averages [2].

Sources

  1. [1] Economics, Class IX . NCERT(Revised ed 2025) > Chapter 3: Poverty as a Challenge > Anti-Poverty Measures > p. 39
  2. [2] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > Findings from previous years Economic > p. 277
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