India’s wealth and poverty levels This study will focus on the economic standards of India and the factors that have lead India to have a wealth and poor population at the same time. India over the last couple of year, it has experienced an increased per capita income due to its increased work force. Also, India has been known as one of the countries with a large population languishing over poverty. India has been experiencing an increase in its economic growth rate over the last four years. In the fiscal year 2014 - 2015 the country had a 7.4% economic increase compared to a 6.9% increase in the fiscal year 2013 - 2014. The country is projecting an economic increase in the fiscal year 2015- 2016 of 7.5%. India was listed the 19th largest merchandise in the year 2013 and with a large export of services which saw India in the 6th position worldwide. The country is not only in the top service export list but also in the import list it was ranked 7th importing merchandise of worthy of $616.7 billion in a total. In fact, this increase in India’s economic growth has been due to an increased output and high performance of two industries that are the agriculture industry and manufacturing industries. These industries the largest India’s economic growth shareholders and their performance influence the country’s economic growth rate in every fiscal year (Maddison, 2013). Moreover, India has been among the best known manufacturing industry in the world. This has in turn led the government to allow investors in the country to invest in the sector. The fast growing and large population has provided force labor to the upcoming industries (Maddison, 2013). A large percentage of India’s population is comprised of poor citizens who in turn provide cheap labor to the industries, hence low input which gives the companies large marginal profits. In addition, the large Indian population has also been a target for the manufacturing industries whose final products are consumed locally in the country before they are exported to other countries. India’s large population has been in the service that also has contributed to the county’s economic growth (Maddison, 2013). The service sector offers services like the tourism, heath care; telecommunication and trade travel services between other many services. These statistics shows that India has been experiencing an increase in its economy. Furthermore, India is one of the countries that are known to poses both a rich group of individuals and at the same time a large population in poverty. The number of poor in India is reducing significantly over the past four years. Though there are different methods to measure poverty a conclusion has been achieved that India has a large population living under the poverty line. India’s population has been increasing yearly at a rate of 1.8 million people (Krishna, 2006). This has led to their population reaching 1.28 billion people. According to a research curried out by the wo.

1. India’s wealth and poverty levels
This study will focus on the economic standards of India and
the factors that have lead India to have a wealth and poor
population at the same time. India over the last couple of year,
it has experienced an increased per capita income due to its
increased work force. Also, India has been known as one of the
countries with a large population languishing over poverty.
India has been experiencing an increase in its economic
growth rate over the last four years. In the fiscal year 2014 -
2015 the country had a 7.4% economic increase compared to a
6.9% increase in the fiscal year 2013 - 2014. The country is
projecting an economic increase in the fiscal year 2015- 2016 of
7.5%. India was listed the 19th largest merchandise in the year
2013 and with a large export of services which saw India in the
6th position worldwide. The country is not only in the top
service export list but also in the import list it was ranked 7th
importing merchandise of worthy of $616.7 billion in a total.
In fact, this increase in India’s economic growth has been
due to an increased output and high performance of two
industries that are the agriculture industry and manufacturing
industries. These industries the largest India’s economic growth
shareholders and their performance influence the country’s
economic growth rate in every fiscal year (Maddison, 2013).
Moreover, India has been among the best known manufacturing
industry in the world. This has in turn led the government to
allow investors in the country to invest in the sector. The fast
growing and large population has provided force labor to the
upcoming industries (Maddison, 2013). A large percentage of
India’s population is comprised of poor citizens who in turn
provide cheap labor to the industries, hence low input which
gives the companies large marginal profits.
In addition, the large Indian population has also been a target
for the manufacturing industries whose final products are
consumed locally in the country before they are exported to

2. other countries. India’s large population has been in the service
that also has contributed to the county’s economic growth
(Maddison, 2013). The service sector offers services like the
tourism, heath care; telecommunication and trade travel services
between other many services. These statistics shows that India
has been experiencing an increase in its economy.
Furthermore, India is one of the countries that are known
to poses both a rich group of individuals and at the same time a
large population in poverty. The number of poor in India is
reducing significantly over the past four years. Though there are
different methods to measure poverty a conclusion has been
achieved that India has a large population living under the
poverty line. India’s population has been increasing yearly at a
rate of 1.8 million people (Krishna, 2006). This has led to their
population reaching 1.28 billion people. According to a
research curried out by the world food programme or WFP
shows that in India, in every minute 51 births are realized.
There are several factors that has led to high poverty levels in
India, these factors are high population growth, corruption,
unequal distribution of resources, gender inequality, and
literacy levels.
The high population in India is among the key factors that lead
to its large poverty line. This population growth has been
propagated by the early girl’s marriages and polygamous
practices that are practiced in the country. The Hindu and the
Muslim community make the greatest percentage of the Indian
population, these two communities strike hard to preserve the
polygamous marriage practice. This practice has led to
unplanned child birth, the parents bare more children than they
can cater. This is the leading cause of children who are
uneducated and who cannot access quality medical attention and
basic needs.
According to Krishna (2006), the country has under a
corrupt government over a large period of time. The government
fund allocation to its citizens like food and infrastructure has
been pocketed by the leaders in the high ranks of leadership

3. hence the common citizen’s lack the basic resources. With very
poor loads network, the citizens cannot transport their farm
produce to the market. This has led to a decline in agriculture
sector which is the source of food and income for the citizens.
When citizens are forced to buy food stuff from the market the
amount that should have gone to other sectors as the education
sector is wasted. The children lack basic education hence cannot
secure good jobs in the country, this leads to the vicious cycle
of poverty among generations.
Unequal distribution of resources in the country has
deprived many citizens the access to quality services. The rural
Indian areas have been neglected since the pre-colonial times.
Centralization of resources in the urban areas has given rise to
the neglection of the people living in the rural areas hence the
best resources are placed in the urban areas only. The poor have
continued to live in poverty (Nandy, Irving, Gordon,
Subramanian, & Smith, 2005).
Gender inequality is where the community works in favor
or one gender while exploiting the other. The Indian community
has discriminated the girl child a move that has left the women
vulnerable to exploitation by the men (Krishna, 2006). Girls in
the Indian community are not educated and this has left them to
be married by the learned men who have all the power over their
wives even to abuse them. The reason why polygamous
marriage has been widely practiced in the Indian society is due
to women having no power refuse been married a second wife.
Also, the women have no money to sustain themselves so they
must bow down for the men to feed them. High literacy levels
among the ladies have also led to high population growth for the
women are not educated in the ways to avoid unwanted
pregnancies.
In the end, according to Broadman, (2007), the perfect country
to compare with the Indian economy is the China. This is
because like in India the country has experienced a series of
poverty levels since their independence. Also, China has a large
population of around 1.357 billion people. Resource distribution

4. has been poor in China due to corrupt governance. India’s
economic growth rate is good and generally the country is
performing better. The country has been experiencing an
increase in economic growth over the last four years but much
need to be done to reduce the poverty level so has to realize a
fully increased population growth.
Reference
Krishna, A. (2006). Pathways out of and into poverty in 36
villages of Andhra Pradesh, India. World Development, 34(2),
271-288.
Nandy, S., Irving, M., Gordon, D., Subramanian, S. V., &
Smith, G. D. (2005). Poverty, child undernutrition and
morbidity: new evidence from India. Bulletin of the World
Health Organization, 83(3), 210-216.
Maddison, A. (2013). Class structure and economic growth:
India and Pakistan since the Moghuls. Routledge.
Broadman, H. G. (2007). Africa's silk road: China and India's
new economic frontier. World Bank Publications.

5. FIRST CODING EXERCISE:
PROJECT 1:
SECOND CODING EXERCISE:
DISPLAY 10.1:
NUMBER ONE {75 points}. Consider the macroeconomic data
provided below. Describe the state of the macroeconomy in
terms of the business cycle for the period from 2003 to 2005.
Note that GDP is stated in nominal terms, not in real terms.
[Sources: bls.gov and bea.gov.]
Year GDP GDP UNEMP INFLATION
(trillions) growth rate rate
Rate (change in CPI-U)

6. 2002 $10.47 - 5.7% 1.60%
2003 $10.97 ? 6.0% 2.28%
2004 $11.73 ? 5.5% 2.66%
2005 $12.49 ? 5.1% 3.38%
NUMBER TWO {75 points}. Comment on the current
unemployment situation in the U.S. What does the
unemployment figure tell us about where the U.S. economy is in
the business cycle? Explain. What does the movement in the
unemployment rate from the previous monthly figure tell us
about where the economy is going in the business cycle?
Explain. Are deeper and more meaningful measures of labor
market conditions necessary in order to comment more
effectively on macroeconomic performance?
NUMBER FOUR {75 points}. The oldest formal statistical
metric of macroeconomic performance is GNP, Gross National
Product, which was first measured and published for the year
1933. We now prefer GDP, Gross Domestic Product. Citation
of figures for GDP, GDP per capita, and GDP growth rates are
now a matter of routine in the culture of journalistic reporting
on society. Discuss the use of such national income accounting
metrics as GDP as measures of social well-being. Is GDP a
useful and accurate guide to the attempt to quantify the welfare
of society in the aggregate? Explain. Is the question, “Would
you rather live in a country with a high GDP growth rate or a
low GDP growth rate?” merely rhetorical?
{Hint: consider a thoughtful reference to concepts and
references presented in:
Fleurbaey, Marc [2009], “Beyond GDP: The Quest for a
Measure of Social Welfare,” Journal of Economic Literature 47,

7. 1029-1075.
http://www.jstor.org/stable/pdfplus/40651532.pdf?acceptTC=tr
ue}