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# CBSE Class 12 Economics Solved Question Paper 2020 – Set 5 (58/5/3)

### Economics (Code No. 58/5/3)

Time allowed : 3 hours
Maximum Marks: 80

General Instructions:

(i) This question paper comprises two sections – A and B. All questions are compulsory.

(ii) Question numbers 1 – 10 and 18 – 27 are very short-answer questions carrying 1 mark each. They are required to be answered in one word or one sentence each.

(iii) Question numbers 11 – 12 and 28 – 29 are short-answer questions carrying 3 marks each. Answers to them should not normally exceed  60 – 80 words each.

(iv) Question numbers 13 – 15 and 30 – 32 are also short-answer questions carrying 4 marks each. Answers to them should not normally exceed  80 – 100 words each.

(v) Question numbers 16 – 17 and 33 – 34 are long answer questions carrying 6 marks each. Answers to them should not normally exceed  100 – 150 words each.

(vi) Answers should be brief and to the point. Also, the above word limit be adhered to as far as possible.

(vii) There is no overall choice. However, an internal choice has been provided in 2 questions of one mark, 2 questions of three marks, 2 questions of four marks and 2 questions of six marks. Only one of the choices in such questions have to be attempted.

(viii) In addition to this, separate instructions are given with each section and question, wherever necessary.

### Section – A(Macroeconomics)

1. _______ deficit includes interest payment by the Government on the past loans. (Fill up the blanks with the correct answer).

2. State, whether the following statement is true or false :

‘Inventory is a stock variable.’

3. To reduce credit availability in the economy, the Central Bank may ______. (Choose the correct alternative)

(a) buy securities in the open market.

(b) sell securities in the open market.

(c) reduce reserve ratio.

(d) reduce repo rate.

Answer: (c) sell securities in the open market

4. In case of an underemployment equilibrium, which of the following alternative is not true? (Choose the correct alternative)

(a) Aggregate demand is equal to Aggregate supply.

(b) There exists excess production capacity in the economy.

(c) Resources are not fully and efficiently utilised.

(d) Resources are fully and efficiently utilised.

Answer: (d) Resources are fully and efficiently utilised

5. Which of the following is NOT a ‘factor payment’? (Choose the correct alternative)

(a) Free uniform to defence personnel.

(b) Salaries to the Members of Parliament.

(c) Rent paid to the owner of a building.

(d) Scholarship given to the students.

Answer: (d) Scholarship given to the students

6. State, whether the following statement is true or false :

‘Margin requirement is raised by the Central Bank to increase money supply.’

Answer: False, margin requirement is reduced by the Central Bank to increase money supply.

7. If Marginal Propensity to Save (MPS) is 0.25 and initial change in investment is ₹250 crores, then the final change in income would be ______. (Choose the correct alternative)

(a) ₹1,000 crores

(b) ₹1,200 crores

(c) ₹500 crores

(d) ₹3,500 crores

Change in Income = ₹1,000 Crores

8. Combined factor income, which can’t be separated into various factor income components is known as ________. (Fill in the blanks with the correct answer).

Answer: mixed income of self employed

9. Define the term ‘Public Goods’.

Answer: The goods or services which are consumed collectively are known as public goods. Excluding anyone from the enjoyment of public goods’ or services’ benefits is not possible. Also, if an individual consumes the public goods, it does not reduce the availability of goods or services to others.

10. Rent + Interest + Profit = _______. (Fill up the blank with the correct answer.)

OR

When Nominal Gross Domestic Product (GDP) is  ₹850 crores and Price Index is 170, Real Gross Domestic Product (GDP) will be ______ (Fill up the blank with the correct answer)

Real GDP = ₹500 Crores

11.‘Subsidies to the producers, should be treated as transfer payments.’

Defend or refute the given statement with valid reason.

Answer: The statement, ‘Subsidies to the producers should be treated as transfer payments.’ is refuted.

A transfer payment is a one-way payment made to an individual or group without any exchange of goods or services. Contrast this with a straightforward “payment,” which in economics is a money transfer in return for a good or service. In general, payments made by the government to people through social programs like welfare, student loans, and even Social Security are referred to as “transfer payments.”
The statement ‘Subsidies to the producers, should be treated as transfer payments’ is supported by the fact that subsidies are transfer payments. Governmental financial support given to producers to further their goals for social welfare is known as a subsidy. The government receives nothing in exchange for the same. It doesn’t contribute to the present flow of goods and services, and as a result, it doesn’t provide any value.

OR

Explain circular flow of income in a two sector economy.

Answer: The circular flow of income is an economic model that reflects how money or income flows through the different sectors of the economy. A simple economy assumes that there exist only two sectors, i.e., Households and Firms. Households are consumers of goods and services and the owners of the factors of production (land labour, capital, and enterprise). However, the firm sector produces goods and services and sells them to households.

#### Circular Flow in a Two-sector Economy (with Financial Market)

In the circular flow of an economy in a two-sector model without the financial market, it is assumed that no savings are made in the economy. It means that the households spend their entire income on the purchase of goods and services and every firm spends all the receipts from the sale of goods and services to make factor payments.

However, it does not happen in the actual world, i.e., households do not spend their entire income on the consumption of goods and services. Instead, they save a part of their income for the future. In the same way, the firms save some part of their receipts for the expansion of business or various other reasons. Besides, the firms also borrow money from outside to finance their expansion plans. All of these savings and borrowings happening in the economy are channelised through the financial market. Therefore, in a two-sector economy, the savings made by households accumulated in the financial market are used by the firms for investment purposes.

Financial Market refers to those institutions like insurance companies, banks, etc., which transacts loanable funds in the economy.

This concept can be better understood with the help of the following diagram:

12. Calculate Net Domestic Product at factor cost.

The total of all the income earned by factors of production within a domestic territory of a nation is known as Domestic Income(NDPFC). It is calculated under Income Method of calculating National Income and the formula for the same is,

Domestic Income(NDPFC) = Compensation of Employees + Profit + Rent & Royalty + Interest + Mixed Income

For the given question, the domestic income will be,

Domestic Income(NDPFC) = Compensation of Employees + Rent and Profit + Interest

= 3,000 +700 + 700

= ₹4,400 Crores

Hence, Domestic Income(NDPFC) = ₹4,400 Crores

13. In the given figure, what does the gap ‘KT’ represent? State and discuss any two fiscal measures to correct the situation.

Answer: In the above-given Income and Aggregate Demand graph, KT represents the inflationary gap.

An inflationary Gap is a gap by which the actual aggregate demand exceeds the aggregate demand required for the establishment of full employment equilibrium. This gap or excess demand happens due to the rise in money supply and availability of credit at easy terms. The inflationary gap can occur because of various reasons such as a rise in the propensity to consume, reduction in taxes, increase in investment, increase in government expenditure, deficit financing, etc.; and can have an impact on the output, employment, and general price level.

The fiscal measures (fiscal measures or policies are the measures of the Central Government) to correct the situation of inflationary gap or excess demand are as follows:

1. Decrease in Government Spending: Government spends a huge amount of money on infrastructural and administrative activities. To control the situation of inflationary gap, it should reduce its expenditure to the maximum possible limit. It should give more emphasis on the reduction of expenditure on defense and unproductive works. It is because expenditure on these activities rarely helps in the growth of a country. Hence, a reduction in government spending will reduce the level of aggregate demand in the economy and will ultimately help in correcting inflationary pressures in the economy.
2. Increase in Taxes: When there is an inflationary gap, the Government increases the tax rates and even imposes some new taxes to reduce the level of aggregate expenditure in the economy. The rise in taxes ultimately helps in controlling the situation of excess demand or inflationary gap.

For Visually Impaired Candidates:

What is meant by deflationary gap? State and discuss any two fiscal measures to correct the situation of deflationary gap.

Answer: When the planned aggregate expenditure of an economy falls short of aggregate supply at the full employment level, the situation of deficient demand rises, which as a result gives rise to a deflationary gap. Hence, the deflationary gap is a gap by which the actual aggregate demand of an economy falls short of the aggregate demand required for the establishment of full employment equilibrium. The deflationary gap can occur because of various reasons such as a decrease in the propensity to consume, an increase in taxes, a rise in imports, a fall in investment expenditure, a decrease in government expenditure, etc., and can have an impact on the output, employment, and general price level.

The situation of deflationary gap happens because of a decrease in the money supply and availability of credit. The fiscal measures (fiscal measures or policies are the measures of the Central Government) to correct the situation of deflationary gap or deficient demand are as follows:

1. Increase in Government Spending: Government spends money on infrastructural and administrative activities. To control the situation of deflationary gap, it should increase its expenditure on different public works such as the construction of flyovers, buildings, roads, etc., so that it can provide income to people hired for these public works. Hence, an increase in government spending will increase the level of aggregate demand and will ultimately help in correcting the situation of deflationary gap or deficient demand.
2. Decrease in Taxes: When there is a deflationary gap, the Government decreases the tax rates and even abolishes some of the existing taxes. The decrease in taxes raises the purchasing power of people which as a result increases their disposable income, increasing their ability to spend more on investment and consumption. Hence, a decrease in taxes raises the level of aggregate demand and helps in controlling the situation of deflationary gap or deficient demand.

OR

Explain how the ‘Reverse Repo Rate’ helps in correcting excess demand.

Answer: Reverse Repo Rate is the exact opposite of repo rate. It means that Reverse Repo Rate is the rate at which the Reserve Bank of India borrows money from commercial banks. RBI borrows money from commercial banks when it feels that there is an excess money supply in the banking system of the country. Besides, banks also happily lend money to the central bank as their money is in safe hands and they also get a good interest rate.

To solve the problem of excess demand, the central bank can increase the reverse repo rate. An increase in the reverse repo rate induces commercial banks to transfer more money to RBI because of the attractive interest rates. Because of this, there will be a reduction in the credit-creating ability of commercial banks. Also, there will be a reduction in the consumption expenditure and investment expenditure, resulting in a reduction in Aggregate Demand.

14. ‘Taxation is an effective tool to reduce the inequalities of income.’

Justify the given statement with valid reasons.

Answer: The given statement, ‘Taxation is an effective tool to reduce the inequalities of income.’ is correct.

The government imposes higher taxes (direct taxes and indirect taxes) on the richer class of society to reduce their purchasing power. By reducing their purchasing power, the government tries to bring the purchasing power of both poor and rich classes equal to each other. Similarly, the government uses the same tax revenue system for providing goods and services to the poorer section of society for free or at a subsidised price in order to support them.

15. Explain the function of Central Bank as ‘Banker’s Bank and Supervisor’.

Answer: An apex body that controls, operates, regulates, and directs a country’s banking and monetary structure is known as a Central Bank. As the functions of a central bank are peculiar, there is only one central bank in a country. Every financially developed country has its own central bank.

There are several commercial banks in a country and it is necessary that some agency regulates and supervises their functioning. As the central bank (RBI) is the apex bank, it acts as the banker to other banks of the country. In simple terms, the relationship between the central bank and commercial banks is the same as the relationship between commercial banks and the general public.

As the banker’s bank, the central bank performs the following three functions:

• Custodian of Cash Reserves: It is essential for commercial banks to keep a certain part of their deposits, also known as CRR or Cash Reserve Ratio, with the central bank. By keeping this proportion of money, the central bank (RBI) acts as a custodian of the cash reserves of commercial banks.
• Lender of the Last Resort: When commercial banks are unable to meet their financial requirements from other sources, they approach the central bank (RBI) to give them loans and advances as lenders of the last resort. By discounting the approved securities and bills of exchange, the central bank assists the commercial banks.
• Clearing House: As the central bank has to hold the cash reserves of all commercial banks, it becomes convenient and easier for the central bank to act as a clearing house of these commercial banks. It means that every commercial bank has an account with the central bank through which the central bank can easily settle their claims against each other by making credit and debit entries in their accounts.

As a supervisor, the central bank (RBI) controls and regulates commercial banks. The regulation of commercial banks can be related to their branch expansion, licensing, management, merging, liquidity of assets, winding up, etc. The central bank controls the commercial banks by inspecting them and the returns filed by them, on a periodic basis.

16. Answer the following questions based on the data given below:

(i) Planned Investments = ₹100 crore.

(ii) C = 50 + 0.50 Y

(a) Determine the equilibrium level of income.

(b) Calculate the value of Savings at equilibrium level of National Income.

(c) Calculate the value of Investment Multiplier.

Answer: a) Keynesian theory says that in an economy, the equilibrium level of income is determined when the aggregate demand (represented by C + I curve) is equal to the aggregate supply (represented by C + S curve).

Aggregate Demand consists of two components; viz., Consumption Expenditure (C) and Investment Expenditure (I). The consumption expenditure varies directly with the income level; however, the investment expenditure is assumed to be independent of the income level.

Aggregate Supply refers to the total output of national income’s goods and services and is depicted by a 45° line.

In the given question, the planned investment is ₹100 Crores, and C = 50 + 0.5Y. Therefore the equilibrium level of income will be,

Y = C + I

Y = (50 + 0.5Y) + 100

Y = 150 + 0.5Y

Y – 0.5Y = 150

0.5Y= 150

At equilibrium, Y = ₹300 Crores

b) The saving and consumption expenditure at the equilibrium level of National Income will be,

Saving Expenditure:

S = -50 + (1-0.5)300

S = -50 + (0.5 x 300)

S = -50 + 150

S = ₹100 Crores

Consumption Expenditure:

Y = C + S

300 = C + 100

C = ₹200 Crores

c) According to Keynes, an initial increment in the investment increases the final income by many times, and the relationship between an initial increment in investment and the resulting increase in the aggregate demand is expressed through a multiplier; i.e., Investment Multiplier.

Multiplier (k) is the ratio of an increase in the national income because of an increase in the investment. It can also be calculated with the help of MPC as there is a direct relationship between MPC and the value of multiplier, which is ‘Higher the MPC, more will be the value of the multiplier’. The formula of calculating k with the help of MPC is:

k = 2

OR

Discuss the working of the adjustment mechanism in the following situations :

(a) If Aggregate demand is greater than Aggregate supply.

(b) If Ex-Ante Investments are less than Ex-Ante Savings.

a)  Aggregate Demand refers to the total demand for finished goods and services in the economy over a specific period. It also refers to a country’s Gross Domestic Product (GDP) demand. Aggregate Supply is the total supply of finished goods and services in the economy over a specific period. When the planned spending of an economy; i.e., Aggregate Demand is more than the planned output; i.e., Aggregate Supply, then the AD (C + I) curve lies above the 45° line. It would mean that the consumers and firms collectively would be buying more goods than the willingness of the firms to produce. Because of this, the planned inventory of the firms would fall below the desired inventory level.

For bringing back the inventory to the desired level, the firms would resort to increase in employment and output until the economy gets back at output level OY, where AD ultimately becomes equal to AS and there is no more tendency to change.

b) When Ex-ante investments is less than ex-ante savings, it means that the buyers are planning to buy less than the output planned by producers for production resulting in unplanned inventories. In that situation, the producer reduces employment resulting in reduced output and income until the two forces; i.e., Ex-ante Savings and Ex-ante Investments become equal.

17. (a) Explain the relationship between fall in price of a US Dollar ($) and its demand. (b) Distinguish between Autonomous items and Accommodating items. Answer: a) A fall in the price of the US Dollar means that in order to buy one unit of US Dollar (₹), lesser nits of Indian Rupee (₹) is required. This situation is also known as appreciation of the Indian Rupee or the depreciation of US Dollar.It refers to an increase in the value of a domestic currency (₹) in terms of one or more foreign currencies (like$). It makes the domestic currency more valuable and less of it is required to buy a unit of currency.

It means that a fall in the price of the US Dollar will result in a rise in its demand.

b)

Autonomous Transactions: These are economic transactions that are made to earn profits, not to bridge the gap in the BoP. In simple words, sometimes there are situations when there is a BoP deficit in that case the government has to make certain transactions to correct it, but the autonomous transactions are not made for that purpose. The purpose here is to maximize profits.

Accommodating Transactions: These are economic transactions that are made to bridge the gap in the BoP. In simple words, sometimes there are situations when there is a BoP deficit in that case the government has to make certain transactions to correct the BoP, these transactions are called accommodating transactions. Thus, it is undertaken to establish the balance of payments identity.

### Section – B(Indian Economic Development)

18. ‘GLF’ with respect to the People’s Republic of China referred to as ______. (Choose the correct alternative).

(a) Giant Leap Forward

(c) Great Leap Forward

19. State whether the following statement is true or false :

“GATT was established in 1923 with 48 member countries.”

GATT (General Agreement on Tariffs and Trade) was established on 30 October 1947, signed by 23 nations.

20. Which of the following countries initiated its process of Economic Reforms in the year 1991. (Choose the correct alternative)

(a) Pakistan

(b) India

(c) Russia

(d) China

21. Policy of ‘Import Substitution’ was targeted to protect ______ industries. (Fill up the blank with correct answer)

22. Which of the following is not used as a strategy for Sustainable Development ? (Choose the correct alternative)

(a) Use of bio-gas

(b) Use of solar power

(c) Use of thermal power

(d) Use of hydel power

Answer: (c) Use of thermal power

23. Maternal Mortality Rate is high in ________ (China/Pakistan). (Fill up the blank with correct alternative)

24. ______ is one of the main positive contribution made by the British in India. (Fill up the blank with correct answer)

25. State whether the following statement is true or false :

“As per the Human Development Report, 2018, India was ranked at 180th position.”

Answer: False. As per the Human Development Report, 2018, India was ranked at 129th position.

26.  If a construction site Manager hires two workers on daily wages basis, such a situation is covered under ______ (formal/informal) sector. (Fill up the blank with the correct alternative)

27. Greater proportion of women workers are found in ______ (urban/rural) areas as a component of Indian work force. (Choose the correct alternative)

28. Compare and analyse the given data of India and China with valid reasons :

Answer: The given table related to the data of India and China shows the following aspects about its population growth and sex ratio:

1. The annual growth rate of the population in China is less (0.5%) than the growth rate in India (1.2%) because of the “One Child Policy” in China. India too wanted to spread awareness among people related to family planning measures, but the decreasing rate of population is China is more than the decreasing rate in India.
2. The number of females per 1000 males in India is less (929) than the number of females per 1000 males in China (941). It is because in India people prefer a son (male) as their child instead of a daughter (female).

29. Discuss briefly the concept of ‘Informalisation of workforce’ in India.

Answer: In recent years there has been unprecedented growth in the informal and unorganised sectors of India. Here, almost the whole agricultural sector and a large part of industrial and service sector units fall under the category of the informal sector. People employed in this sector are generally not entitled to get regular salary and other social security benefits. Therefore, Informalisation of the Workforce refers to a situation where the workforce in the informal sector increases to the total workforce of the country. According to the composition of the workforce in India, it has been divided into two categories; Formal or Organised Sector and Informal or Unorganised Sector. The Formal Sector consists of jobs that have specific working hours and fixed wages; whereas, the Informal sector is where the workers or employees don’t have fixed working hours and wages.

Besides, after keeping in view to the growth of the informal sector and the various disadvantages attached to it, in recent times, the Indian Government has initiated its modernisation and provision of social security measures to the workers.

OR

State any three challenges facing rural development in India.

Answer: Rural Development is a continuous and comprehensive socio-economic process that attempts to improve all aspects of rural life. The challenges facing rural development in India are as follows:

1. Development of Human Resources: It is essential to improve the quality of the human resource. It can be done by giving proper attention to better health facilities and literacy.

2. Development of Infrastructure: The infrastructure also needs improvement in electricity, credit, marketing, irrigation, and transport facilities.

3. Land Reforms: Land reforms consist of four things; viz., elimination of exploitation in land relations, increasing agricultural productivity, actualisation of the goal of land to the tiller, and improvement of socio-economic conditions of rural poor.

30. “Modernisation as a planning objective shows a dichotomy with employment generation.” Justify the statement.

Answer: The given statement, ‘Modernisation as a planning objective shows a dichotomy with employment generation.’ is correct.

Modernisationrefers to the incorporation of technology into the economy. It helps in raising the standard of living of people in society. Inventions, advancements, and innovations in technology play a vital role in the growth of our economy and increasing its output.Modernisation includes:

• Adopting New Technology: The main aim of modernisation is to increase the production of goods & services by using new technology. For example, the introduction of technology in agriculture resulted in increased output, and over the years, the Indian economy has also witnessed a rise in the IT sector due to modernisation.
• Change in Social Outlook: Modernisation also needs changes in social outlooks, such as women empowerment or providing equal rights to women. A society can be more prosperous or civilised if it uses the talent of women employees in the workplace.

OR

State the two-fold motive for the systematic destabilisation of indigenous Indian industries in the British era.

Answer:  Before British rule, India’s handicraft Industry was popular and enjoyed a global market because of the better quality goods produced in these industries. However, during  British rule, the Britishers misruled here and forced the industrialists to reduce the production of handicrafts in India. In other words, the British policies de-industrialized India systematically.

The basic aim of Britishers for the de-industrialization of the Indian Industrial Sector was two-fold.

• Firstly, the Britishers wanted to get cheap rate raw materials from India so that the Indian Industries, instead of providing finished products can become a mere exporters of raw materials to the British Industries.
• Secondly, the Britishers wanted to sell the goods manufactured in their home country to the Indians at a high price.

In this way, the Britishers exploited the Indian Industrialists from two sides, which resulted in a huge decline in the traditional handicraft industry of India. The Britishers also exploited the Indian Industry by implementing a discriminatory tariff policy. Under this policy, the British rulers allowed the Industrialists to export raw materials from India for free and import British final goods to India for free. However, they imposed a heavy duty on the export of handicrafts from India.

31. State and discuss any two problems faced by power sector in India.

Answer: Electricity or Power is a critical component of infrastructure and is often identified with the progress in modern civilization. During the last four decades of planning, Power development in India has been significant; however, power generation is still insufficient as compared to the required power. Because of this, in recent years, India is facing a serious power crisis. Some of the problems faced by the power sector in India are as follows:

1. Inadequate Electricity Generation: The installed capacity of India to generate electricity is not enough to feed an annual economic growth of 7-8%. It is only able to add 20,000 MW per year and to fulfil the growing requirements of power, the commercial energy supply needs to grow at about 7%.
2. Shortage of Inputs: The foundation of India’s power sector; i.e., the Thermal Power Plants is facing a shortage of raw materials and coal supplies.
3. Limited Role of Private and Foreign Entrepreneurs: The role of private sector power generators and foreign investors is limited. They are yet to play a major role in Power Infrastructure.

32. Discuss briefly any two salient features of India’s pre-independence occupational structure.

Answer: Distributing working people across primary, secondary, and tertiary sectors of the economy is known as Occupational Structure. The primary sector consists of production units that exploit natural resources like water, land, etc. For example, mining, fishing, forestry, etc. The secondary sector consists of production units that transform one good into another good. For example, construction companies, power generation companies, etc. The tertiary or service sector consists of production units that are engaged in producing services. For example, finance, education, transport, etc.

The salient features of the occupational structure of India on the eve of Independence are as follows:

1. Predominance of Primary Occupation: Largest share of the workforce; i.e., 70-75% were found in the agricultural sector. However, the manufacturing and service sector accounted for 10% and 15-20% respectively.
2. Regional Variation: On the eve of independence, regional variation was growing. There was a decline in the dependence of the workforce on the agricultural sector in the states of Andhra Pradesh, Tamil Nadu, Karnataka, Kerala, West Bengal, and Maharashtra. However, the increase in the manufacturing and service sectors in these states was good. Also, during the same time, the share of the workforce in the agricultural sector in the states of Orissa, Punjab, and Rajasthan increased.

OR

Discuss briefly, the rationale behind “equity with growth” as planning objectives for Indian Economy.

Answer: Growth refers to an increase in the production capacity of goods & services of an economy. Simply put, the growth implies:

• Either a large size of supporting services like banking and transport;
• Or a larger stock of productive capital;
• Or an increase in efficiency of productive capital & services.

Other goals focused on the development of the economy only. But only economic development is not sufficient. The five-year plan must focus on the development of society also. Equity concentrates on ensuring that all citizens of the nation have their basic needs for clothing, food, and shelter properly met. It also tries to reduce the inequality and wealth gap in society. In short, equity aims at raising the standard of living of people and promoting social justice.

33. (a) Distinguish between ‘Green Revolution’ & ‘Golden Revolution’.

(b) How has women’s health become a matter of great concern in India? Explain.

a) Green Revolution: A large increase in the production of food grains resulting from the use of high-yielding variety seeds, especially for wheat and rice.

Golden Revolution: A period in which the production of horticultural products such as vegetables, fruits, etc., showed a tremendous rise is known as the Golden Revolution. In India, the period between 1991 to 2003 is considered the period of the Golden Revolution. It made India a world leader in the production of spices, bananas, mangoes, and coconut. The Father of The Golden Revolution in India is Nirpakh Tutej.

b) The women population constitutes approximately half of the total population of India, but do not get the proper advantage of health care. The social consideration of the country was so rigid that traditionally, the health care of women had been on the back burner. However, in present times, the matter of women’s health has become crucial because of the declining gender ratio. Besides, the rate of female foeticide is also increasing resulting in an increasing number of women. Also, most of the women who are married are suffering from anaemia and nutritional anaemia resulting in maternal deaths.

Therefore, it is essential to look after the health care of women of India.

34. Critically examine the results of Poverty Alleviation Programmes implemented in India since Independence.

Answer: Poverty is a particular issue that affects many countries around the world. There can not be a universally acknowledged definition of poverty. Broadly it can be said that: Poverty refers to a state in which an individual is unable to fulfil even the basic necessities of life. The minimum requirements include food, clothing, shelter, education, and health facilities. To remove poverty, the Government of India has taken various approaches such as Growth-orientation Approach, Minimum Needs Programme, and Poverty Alleviation Programmes.

Poverty Alleviation Programmes is the second approach initiated by the Government of India from the Third Five Year Plan and has been progressively enlarged since then. As the total number of poor people has remained the same over the last two decades because of the growth of population, the Government of India has specifically designed anti-poverty programmes under this approach for the generation of both self-employment and wage employment.

Because of the poverty alleviation programmes, the percentage of absolute poor people in some of the states of India has fallen below the national average of poverty. In spite of the fallen level of poverty, the problems of hunger, illiteracy, and malnourishment continued to exist in India, and the reason behind these problems are as follows:

• Lack of radical change in the ownership of assets.
• Inadequate resource allocation for the programmes.
• The Government officials who are responsible for the implementation of these programmes were ill-motivated and are not properly trained.
• Lastly, as there is unequal distribution of land and other assets, various benefits from these programmes have been appropriated by the non-poor.

Hence, it can be concluded that even though the poverty alleviation programmes helped in reducing poverty in India, the Government have not been able to achieve the desired results because of the improper implementation of these programmes.

OR

(a) “Ujjawala Yojana has been a game changer for rural India.” State any three conventional fuels being targeted under the Ujjawala Yojana.

(b) “Economists believe that India should spend at least 6% of its GDP on Education for achieving desired results.” Justify the statement with valid reasons.