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Poverty reduction and economic growth in India

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Poverty reduction and economic growth in India

India has significantly achieved considerable poverty reduction and economic growth. Structural change formed the foundation for the efforts to achieve economic growth and reduce poverty in India. The government of India enhanced the investment rates, especially in the nonagricultural sector hence making increased rates of per capita income growth. In India, nonagricultural activities were given more priority to achieve economic growth as compared to the agricultural sector. Most of the resources were directed to tertiary sector that up to date accounts for the largest portion of the national income in India. The government established industries that led to the generation of employment for Indians hence improving their living standards. Most of the industries were located in towns, thus fueling rural –urban migration. Many Indians migrated from rural areas to towns hence leading to increased urbanization. The advancement in industrials activities led to increased availability of products such as fuel among other services such as sanitation facilities hence improving people’s living standards. Also, India led to considerable increase in household assets through industrial growth.

India significantly improved basic services for people among other facilities to achieve economic growth. The government improved the accessibility and affordability of fundamental needs such as nutrition for hence reducing poverty among the poor people. Through government policies in India, good infrastructure was achieved enabling activities such as transportation and communications. Also, health sector noted considerable improvement through government’s intervention. India considered health as the foundation of economic growth and poverty reduction, thus making health services available to all Indians. Advancement in technology made a significant contribution achieving sustainable economic development in India. Through government policies various inequalities were addressed hence contributing to equalized allocations of the national resources among the Indian. Also, the India enhanced various factors that improve output such as human and physical capital hence achieving economic growth. India successfully reduced poverty by focusing on nonagricultural activities unlike other developing countries that invested in agricultural activities to achieve sustainable economic growth.

 

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