Question

Q. According to the economic survey 2020-21, unlike in the advanced economies, the economic growth in India has a far greater impact on which of the following indicators?

• A. Poverty Alleviation
• B. Reduction in inequality
• C. Environmental Protection
• D. Life expectancy

Answer 1

The correct option is A Poverty Alleviation

Explanation:

The Economic Survey states that the relationship between inequality and socio-economic outcomes on one hand, and economic growth and socio-economic outcomes, on the other hand, is different in India from that observed in advanced economies.

• Unlike in advanced economies, economic growth and inequality converge in terms of their effects on socio-economic indicators in India.
• The Economic Survey has arrived at this conclusion by examining the correlation of inequality and per-capita income with a range of socio-economic indicators including health, education, life expectancy, infant mortality, birth and death rates, fertility rates, crime, drug usage, and mental health across the Indian states.
• The analysis shows that both economic growth, and inequality have similar relationships with socio-economic indicators. On the basis of the analysis, the Economic Survey 2020-21 observes in India, “Economic growth has a far greater impact on poverty alleviation than inequality”. Economic growth has been represented by income per capita at the state level. Hence option (a) is correct.