Article Details

To Study of Macro Economics to Reduce Poverty Rate In Various States In India |

P. K. Pathak, in Journal of Advances and Scholarly Researches in Allied Education | Multidisciplinary Academic Research


India, located in South Asia is a large country that ranks second in the world in terms of population and seventh in terms of geographical area. Its civilization is very old datingback to at least 5000 years. Its greatly diversified land includes various types of forests, broad plains, large coastlines, tallest mountains and deserts. India has a democratic and federal system of government with 29 states and 6 union territories.  Like most  other  colonies,  India  greatly lagged  behind  economically  and socially  compared  to  the  developed world.  Periodic  estimates  of  national  income available  since  mid-nineteenth  century  indicate  that  the  per capita  income  virtually stagnated  in  India till independence  when  world income  grew  several  fold  due  toindustrial and technological revolution. A large mass of the population was living in abysmal conditions. The national government formed after independence placed priority on ‘economic growth with social justice’. A mixed economy model with a major role for the state  in industrial production was adopted with an emphasis on import substitutionstrategy.  While  this  policy  helped  to  lay  the  foundation  for  industrialization andtechnological change, national income  growth remained low at about 3-4 per cent per annum for several decades. The outward oriented Asian countries grew much faster during this period by taking advantage of post-war expansion in international trade and investment flows.