Question

What are the causes for low level of economic development? In Points answer

Answer 1

The reason for such a low level of development was that the British government was more concerned with the promotion of economic interests of their home country. Consequently, the colonial rule transformed India's agriculture sector to a mere supplier of raw materials for the British industries.

Answer 2

Answer:

According to Nelson the malady of underdeveloped economies can be diagnosed as a stable equilibrium level of per capita income at or close to subsistence requirements. At this low stable equilibrium level, both the rate of investment and saving are low.