Chapter : 1. Poverty As Challange
Removal of Poverty
Following are some of the measures under taken by the government alleviation of poverty.
1. Trickle down effect :
(A) Under this government laid stress on the development of agriculture and industries.
(B) It was assumed that development of industry and agriculture would create employment opportunities and incomes, which would lead to rapid economic development.
(C) It was assumed that the benefit to a particular section across the country, particularly the poorer ones. This is also known as trickle down effect.
2. Land Reforms :
Due to economic policies of the Britishers there was a huge gap between the income of the rich and poor. Wealth and other resources like land was concentrated in the hands of a few. In order to reduce the gap the government introduced following land reforms.
1. Abolition of Zamindari system
2. Land ceiling
3. Fixation of Rents
3. Promotion of cottage and small scale industries :
Cottage and small scale industries, which employ more labourers and less machinery, is being encouraged. The government has reserved some products solely for these industries.
4. Income redistribution measures :
In order to reduce the gap between the poor and the rich, the government made an attempt through income redistribution measures. This has been done by taxing -
(A) The rich and middle class
(B) The commodities of luxury consumption.
(C) Subsidising the provision of essential goods to lower income groups.
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