2012 · Q92
Which of the following are the main causes of the slow rate of growth of per capita income in India ?
- 1High rate of capital formation
- 2High level of fiscal deficits
- 3High rate of growth of population
Indian EconomyGrowth and sectors
- A1, 2 and 3
- B1 and 2 only
- C1 and 3 only
- D2 and 3 only
Explanation
Rapid population growth dilutes income gains across more people, and high fiscal deficits crowd out productive investment — both are textbook drags on per-capita income growth in India. The keyed answer includes all three statements. UPSC's official key marks A (1, 2 and 3); strictly, high population growth and fiscal deficits are the standard culprits, whereas a high rate of capital formation ordinarily supports growth.