Assertion (A) and the other labelled as Reason (R):
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?
Explanation
Assertion (A) is false: Though India’s national income increased significantly since independence, per capita income also showed considerable improvement over the same period. While rapid population growth moderated the pace of per capita income growth, there was still a noticeable rise, disproving the assertion. Reason (R) is true: A sizable proportion of India’s population (almost 36% in 1996, around 5% in 2024) continues to live below the poverty line, limiting the equitable distribution of income. Poverty reduces individual economic capabilities, there-by keeping per capita income relatively stagnant despite overall growth in national income.
As of the latest available data, India’s economic indicators have shown significant growth:
Per Capita Net National Income (NNI): According to the National Statistical Office (NSO), India’s per capita NNI at current prices was estimated at 1,69,145 and 1,88,892 respectively for the years 2022-23 and 2023-24 nearly doubling from 86,647 in 2014-15. Per Capita GDP: The International Monetary Fund (IMF) reported India’s per capita GDP at approximately $2,940 in 2024. These figures reflect India’s robust economic expansion and improvements in individual income levels over recent years.