Check sibling questions

As per this approach,

Increase in GDP will generate income for all sections of society including poor

 

Focus of govt is on Rapid Economic Growth by:

Setting up New Industries

Reforms in Agriculture

Developing Infrastructure

 

All this will lead to increase in GDP as well as per capita income

This income will be earned by all sections of society including poor

 

Example

When economy will grow, there will be more job oppurtunities and hence poor will get job

Growth Oriented Approach - Teachoo.JPG

 


Note-Growth oriented Approach is based on theory OF 'Tricke Down Affect'

 

What is Trickle Down Affect

As per this theory
If Income and Savings of Rich Increase

They will spend more and employ more people

Hence income of Poor will also increase

What is Trickle Down Effect In Economics - Teachoo.JPG

 

Has Growth Oriented Approach for Poverty Alleviation being successful?

or

Has benefit of Economic Growth trickled down to poors?

 

No

Economic Growth in India has increased income inequality

Rich have become more rich while poor have become more poor

 

Also Green Revoution has benefitted large farmers more than small farmers

 

Also economic reforms of 1991 have failed to generate more jobs

Hence, benefit of economic growth have not tricked down to the poor sections of society

 

Was Growth Oriented Approach successful - Teachoo.JPG

NCERT Questions

Q11

If you live in an urban area, you may notice people live in slums, on the roadsides, near railway stations and near bus

stands.

Suggest a few measures to improve their living conditions.

-a-
Few measures to improve their living conditions:

1 Encouraging parents to send their children to schools to study

2 Providing minimum financial support to the families wherever possible

3 Making them aware of the industry demanded skills that can generate employment for them

4 Helping them improve their communication techniques

5 Telling them about all the government provisions that are available for them


 

MCQ Other Books

Q1

In the following questions, select the correct answers:

1 Which of the following was the reason for failure of Growth Oriented approach?

A Green Revoution has benefitted large farmers more than small farmers

B Rich have become more rich while poor have become more poor

C Economic reforms of 1991 have failed to generate more jobs

D All of these

View Answer

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Transcript

Growth Oriented Approach Setting up New Industries Reforms in Agriculture Developing Infrastructure Will lead to Economic Growth & Increase in GDP Increase in Income of Rich (Industrialists, Rich Farmers) Will generate more jobs for Poor This is Trickle Down Affect If Income and Savings of Rich Increase They will spend more and employ more people Hence income of Poor will also increase What is Trickle Down Effect In Economics As per this theory If Income and Savings of Rich Increase They will spend more and employ more people Hence income of Poor will also increase Criticism of this theory It increases only Income of Rich Rich becomes richer and poor becomes poorer It increase inequality in society Was Growth Oriented Approach successful? Has benefit of Economic Growth trickled down to poor? What did the Govt do 1950-90 Establish Large PSU Not much Support to Small industries 1960-70 Green Revolution Benefitted Large Farmers, Not landless labour 1991 Economic Reforms(NEP) Did not Generate more jobs Growth Approach Benefits More for Rich than poor Not much Trickle Down Affect

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CA Maninder Singh is a Chartered Accountant for the past 12 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.