Assertion :Capital formation in India has been low due to population explosion. Reason: Rising population has led to increased spending on consumption, while very little part of the national income is available for savings and investments

Both Assertion and Reason are correct and Reason is the correct explanation for Assertion

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Both Assertion and Reason are correct but Reason is not the correct explanation for Assertion

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Assertion is correct but Reason is incorrect

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Both Assertion and Reason are incorrect

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Solution

The correct option is A Both Assertion and Reason are correct and Reason is the correct explanation for Assertion

Assertion

Capital formation in India has been low due to population explosion. Population explosion refers to a situation when the population rises due to high birth rate and low death rate
Reason
Rising population has led to increased spending on consumption, while very little part of the national income is available for savings and investments
Both Assertion and Reason are correct and Reason is the correct explanation for Assertion

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