Social Science — CBSE Class 10 board question

Income as a Factor in Development:

Income is an important factor in assessing development because it tells us what an average person can earn and afford. A higher per capita income means people can meet their needs better — food, clothing, shelter, healthcare, and education. The World Bank and other agencies use per capita income as a common measure to compare countries because it gives a quick idea of the economic level of a country.

However, income alone is not enough. For example, Haryana has a higher per capita income than Kerala, yet Kerala has a much lower Infant Mortality Rate (6 vs. 28) and higher literacy (94% vs. 82%). This shows that income must be seen alongside health and education indicators.

World Bank Classification:
The World Bank classifies countries based on per capita income into:

• Rich/High-income countries — per capita income of US $13,845 or above per annum.
• Low-income countries — per capita income of US $1,135 or less per annum.
• Middle-income countries — those falling between these two groups.

India falls in the lower-middle-income category.

Source: Chapter 1 — Development, Income and Other Criteria / Notes for the Teacher

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• The question is split 2+3: spend 2 marks explaining why income matters and 3 marks on the World Bank classification (categories + thresholds).
• Always mention the specific income thresholds for the World Bank groups — examiners look for these figures.
• The Kerala–Haryana contrast is a standard textbook example to show income's limitation; briefly mentioning it strengthens the 2-mark part.
• Don't over-elaborate on UNDP/HDI — that belongs to a different question (Q5 of the exercise).