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