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1. Accelerating Economic Growth:In the fifties and sixties it was generally thought that poverty in India can be significantly reduced by accelerating economic growth. According to this view, benefits of economic growth will trickle down to the poor in the form of more employment opportunities, greater productivity and higher wages. With this it was expected that the poor will be raised above the poverty line.Various growth models put forward in the fifties and sixties such as Harrod-Domar growth model, Mahalanobis growth model, Lewis’ model of economic development with unlimited supplies of labour suggested rapid growth of the modern industrial sector to tackle the problem of poverty in the long sun. For this purpose they suggested for increasing the rate of capital formation so as to generate more employment opportunities and increase productivity of labour.Though this is correct that higher rate of capital formation is necessary for accelerating economic growth and thereby for solving the problem of poverty, but this will not generate sufficient employment opportunities if labour – saving capital-intensive techniques of production are used in the process of growth.Image : Economic Times.This has been clearly brought out by the actual experience in India in the eighties and nineties whereas in the two decades of development, rate of growth in GDP achieved is in the range of 5.5 per cent to 6 per cent per annum there has been only little increase in employment opportunities, especially in the organised industrial sector.Therefore, while efforts should be made to accelerate economic growth but if it has to make a significant dent on the problem of poverty the use of capital-intensive technologies imported from the Western Countries should be avoided. In fact, we should pursuer labour-intensive path of economic growth. Such monetary and fiscal policies should be adopted that provide incentives for using labour-intensive techniques.2. Agricultural Growth and Poverty Alleviation:Agricultural growth has been recognized as an important factor that contributes to marked reduction in poverty. A study made by Montek Ahuluwalia, former member of Planning Commission, brought clearly that agricultural growth and poverty are inversely related; the higher agricultural growth leads to lower poverty ratio. The expe­rience of Punjab and Haryana in the late sixties and in the seventies confirmed this inverse relation between agriculture growth and poverty.The growth in agricultural output in these states propelled by the adoption of new-high yielding technology caused a marked reduction in poverty in these states. Rural poverty ratio in Punjab and Haryana was 6.4 and 8.3 per cent respectively in 1999-2000.However, in the recent years relationship between agricultural growth and poverty reduction seems to have weakened. For example, at all India level, employment elasticity of growth in agricultural output has been found to be zero during 1993-94-1999-2000 whereas it was 0.45 during 1977-78-1983.Image:Reserve Bank of IndiaIt appears that at the all India level employment generated by new green revolution technology has been cancelled out by increasing mechanisation of agricultural operations in various parts of a country. Thus, even in the light of the finding of zero employment elasticity of agricultural output at the all India level, positive impact of agricultural growth on the incomes of small farmers and, more particularly on the wage income of agricultural labourors, cannot be denied.To ensure marked decline in rural poverty through agricultural growth, rate of agricultural growth should be accelerated by increasing public investment in irrigation and other infrastructure.3. Speedy Development of Infrastructure:An important measure to generate employment opportunities for the poor and to raise their productivity is the speedy development of infrastructure. Since private sector is not attracted to make adequate investment in infrastructure, public investment needs to be stepped up for its development. Infrastructure development consists of building of roads, highways, ports, telecommunication, power and irrigation. They involve mainly construction work which is highly labour intensive.Picture of Other sectors:Need of the Hour:Setting Up of Training Centres to Generate Skilled Workers.Encouragement for Female Workers.Setting Up of ‘Parks’ in Rural Areas.Small Units and Value Chains.4. Accelerating Human Resource Development:Besides physical infrastructure development, poverty can also be reduced through human resource development. Human resource development requires greater investment in educational facilities such as schools to promote literacy, technical training institutes and vocational colleges to import skills to the people. Further, human resource development requires health care by public investment in Primary Health Centres, dispensaries and hospitals.Health:Education:This human resource development not only generates a good deal of employment opportunities but also raises productivity and income of the poor. Further, people equipped with skills, education and good health can easily get wage employment or self-employment with higher productivity.5. Growth of Non-Farm Employment:For reduction of poverty growth of non-farm employ­ment in the rural areas is of special importance. Non-farm employment is created in marketing (i.e., petty trade), transportation, handicrafts, dairying, and forestry, processing of food and other agricultural products, repair workshops.A study of poverty alleviation in Haryana brings out that significant reduction in rural poverty in Haryana in spite of a reduction in employment opportunities in agriculture was due to the remarkable increase in non-farm employment.6. Access to Assets:Rapid growth of population after independence has led to greater sub- di­vision and fragmentation of agricultural holdings and lack of employment opportunities in industries and other non-farm sectors has worsened the conditions of agricultural labour and self-employed small farmers.With no land or little land they can not engage themselves in self-employment activi­ties for earning adequate income to meet their basic needs. Redistribution of land through effective redistribution, implementation of tenancy reforms so as to ensure security of tenure and fixation of fair rent would be an important measure of reducing rural poverty. Except in case of West Bengal and Kerala land reforms have not been implemented to reduce rural poverty.Image: Average size of operational holdings as per different agriculture censusHowever, abolition of Zamindari system is the only land reform measure which has been faithfully implemented in several parts of the country. Other land reform measures, namely, ceilings on land holdings, protection of tenants against eviction, and regulation of fair rent by the Government have remained unimplemented except in case of West Bengal and Kerala.Tenants who enjoy no security of tenure do not invest adequately in yield-increasing inputs to raise their productivity. The effective implementation of land reforms to ensure access to land and security of tenure are essential for the reduction of poverty.7. Access to Credit:Availability of credit to the poor on easy terms can create the conditions for small farmers gaining access to productive resources such as HYV seeds fertilizers, construction of minor irrigation such as wells and tubewells. This will enable the small farmers to adopt high- yielding technology to raise their productivity.The new technology is size-neutral, that is, it can be adopted equally well by small farmers. But the adoption of new technology requires financial resources which are lacking with the small farmers. Besides, the non-farmer poor need credit for marketing, food processing, dairying, forestry, development of handicrafts which can provide them gainful employment.Important changes have been introduced in the credit delivery system in India. Expansion of network of rural branches of commercial banks after nationalisation and fixation of limits for compulsory lending to the priority sectors (which include agriculture, small-scale industries) and fixation of lower interest rates to be charged from the poor farmers and artisans some progress has been made in this regard.Any loan to agriculture and allied sector is called farm credit. When the borrower is directly responsible for its repayment to the lending agency, it is direct farm credit.Indirect credit refers to, funds agriculture indirectly through some intermediary agency/institutions etc. which will be responsible for repayment. So funds availed by fertilizer dealers, state corporations, FCI, warehouses will come under indirect creditor to agriculture.However, banks and other financial institutions have not shown adequate response to provide adequate credit to them as they consider the poor to be non-creditworthy. Unless the banks and other financial institutions change their attitude toward supplying credit to the poor much success cannot be achieved to ensure adequate credit to the poor farmers and artisans. What they do need is short-term loan for working capital such as for purchasing raw materials, fertilizers, pesticides.An important step in credit delivery system for the poor has been setting up of regional rural banks (RRB). Regional rural banks are primarily meant to meet the credit needs of the poor. The Government should take effective steps to improve the functioning of these financial institutions so as to ensure availability of adequate credit to the poor.8. Public Distribution System (PDS):Poor households spend nearly 80 per cent of their income on food. Therefore, an effective way of raising rural incomes and ensuring food security to the poor households is an assured supply of adequate quantity of food-grains and other essential commodities at subsidised prices, that is, at prices which are lower than the market prices.A properly functioning public distribution system which is targeted to the poor households is an important element of the strategy for poverty reduction. The Central Government Organisation ‘Food Corporation of India’ procures the food-grains from the farmers at the minimum support prices (MSP) and store them in their warehouses located throughout the country.Image: PDS thefts keep rising, at Rs 48,000 cr in FY12PDS System should be implemented properly to ensure that real beneficiaries will be tapped.9. Direct Attack on Poverty: Special Employment Schemes for the Poor:It was realised in the early seventies that it would take a very long time for economic growth to generate enough employment opportunities to provide productive employment to all the unemployed and poor in the country. Therefore, a strategy of providing employment to the poor in the short run, special schemes of employing poor on rural public works was proposed.The special employment scheme of rural public works which was launched by the Government in 5th Five Year Plan constitutes a direct attack on poverty as it does not depend on the trickledown effect of economic growth on the poor. There are mainly two types of such special anti-poverty schemes launched by the Government from time to time.Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) is Indian job guarantee scheme enacted by legislation in 2005. The scheme guarantees 100 days of work for each FY to adult members of any rural household willing to do public work related unskilled manual labour.Women Participation in MNREGA is appreciable which provides them economic as well as social security.

She could leave it to you in a trust, and specify in the trust why she is leaving it only to you. This gets fairly tricky and problematic if there are other siblings of yours for her to consider. She may want to leave it to all of her children, to be sold and the net proceeds split. You can always exercise the right to buy the home at that time for close to full market value at the time of her death.If you paid rent equal to the mortgage, was it fair rent for the size of home and location? If so, she may view this home as hers alone and hers to leave to all her children. Yes, it was nice that you were available to rent the home, but this does not mean that you are entitled to the ownership of the home when she dies.Why? It was her downpayment, her income qualification, and this gamble with her money gained her equity in the home. She may view that home and the equity that has been gained as hers alone, to do as she wishes with it.She may need it for nursing home care or medical expenses. She may want to go on a trip around the world, or sell the home to you at market value. They home most probably has increased in value in the last 7 years.The fact that you had somewhere nice to live is a bonus for you.Please consult a lawyer to see what the laws are in your state.I am not a lawyer and this is not legal advice.

I have replied to this question many times in different avatars. I will answer in Indian context here. For every Indian, especially a salaried middle class, owning own residence is always a dream. DC Jain has outlined the pros and cons very well. Not much for me to add. I will try to provide another perspective.The simple (TLDR) answer to this question is - like every Indian, my answer will be to buy own home. Why? Because it brings the greatest peace of mind and there can be no financial argument against it. Many will try to present Rich Dad, Poor Dad example and say how buying property is a liability (that is true), how a property itself is a liability (completely false), how money should be made to work for you (I believe money is working for you in this case) and so on. I have read the book, way back 10 years ago. I am not a fan of that book. Some philosophies and principles, I agree but mostly I disagree with the book. In India, renting is not a controlled affair and we do not have many agencies who own properties for rent. We have brokers and unscrupulous landlords. We are left to the mercy of these and I hear plenty of cases when tenants are asked to leave and a lot of to 100% of the rent deposit is never returned. Hence, I advocate buying.However, people are in a hurry to buy. First of all there is a social pressure from family and friends. Family people exclaim - What? You have not purchased a home yet? Beta (son), when will you do that? Buy now while the price is low. The last statement was somewhat true till a few (5) years ago and prices were rising, not every year, not every month, but even every week. But the madness has come to an end. Thankfully. Last 5 years, there is very little appreciation. I have had numerous comments on my answers that prices are still increasing. I do not think so. A 2-BHK flat in 2015 was priced at Rs. 65–75 lakhs, it is the same today. People look at new properties only. If people look at second sale properties, they can get very nice properties for a bargain.The cost of properties is beyond reach for most salaried people in the age group 28–32, the time when they jump in. To be fair, it always was. I too purchased my property in 1991, finalised loan in 1992 and got possession at the end of 1993. In my apartment block there are 20 flats and I am the only salaried person besides the retired Chairman of a Bank. What do salaried people do to buy a house? They put in a good down payments and take out a hefty loan. This loan and the EMI / instalment is very severe. To reduce the instalment, they go in for a 25 or 30 year period. You should read about the drawbacks of a long loan in my following answers [1][1][1][1]. I have some advice on loans here a[2][2][2][2]nd here[3][3][3][3].The summary of my advise is:You should buy a home for yourself. Home is an asset and not a liability (home loan is a liability).Do not buy if you are not convinced. There could be many reasons besides price and EMI - you may wish to change job/city, you have no intention to settle in this city, etc.Renting is cheaper than buying purely on financial terms and a shorter outlook.You should not be in a hurry. As they say in cricket - pace out your innings. Crippling oneself with a hefty loan repayment is very strenuous. If you have waited till 30, you can wait till 35 or 38.Start a goal to buy home early. As early as 25 and start saving for it. From 25 to 30, you will have very little financial responsibilities and you can save at least 50% of your salary.A tidy SIP in am Equity MF at 12% for 10 years can build a healthy amount and that will greatly reduce the loan amount:SIP of ₹10,000 will result in a corpus of ₹23,23,391SIP of ₹15,000 will result in a corpus of ₹34,85,086SIP of ₹20,000 will result in a corpus of ₹46,46,782₹SIP of ₹25,000 will result in a corpus of ₹58,08,477SIP of ₹30,000 will result in a corpus of ₹69,70,172Go for a small tenure / period length of the loan. Try not to exceed 15 years. 20 years is the maximum. Shorter tenure means less debt period, easier to finish quickly.Do not expect the loan rate to be as low as 6.9% or 6.8% as of today. Chances of upward revision are more likelyDo not think that you are missing out on a great deal, a cheaper place, etc. While property prices will rise, they will not for the next 2–3 years and after that may be 5% per year at the most. Why do I say that? This is because:Middle class salaries are now stagnant.Job loss fear is heavy and people are not buyingPrices are already beyond reachThere is a huge inventory of unsold flatThe builder may quote a large price. Negotiate. Do not show any interest in the property and be prepared to walk away.The builder will come running after you, if he thinks that you are a genuine buyer. (I have positive proof of this.) When you have ready finance, no builder will ignore you. A 10% reduction is easy.The days of the seller (builder) are gone.… and finally, you can always find a great deal in second sale properties (the builder also knows this).Different scenario - you are already in 30s and you did not save much for down payment. What to do? All is not lost. You can still save for 5–6 years and try to save more. It is great myth that one should buy a house as early as possible. Plenty of people I know have purchased home in late 40s with lot of down payment and very little loan. It is also a great myth that you will not find similar location, property again. The price may rise but so will your saving cum investment if one invests smartly. Point is try to reduce loan requirement as much as possible, if you can’t eliminate it.As with anything else, a huge financial decision must be planned properly and then it can result in a sound decision.Footnotes[1] Prasanna Bhalerao's share of Prasanna Bhalerao's answer to My home loan tenure is 30 years and I am willing to complete the same within 10-12 years. Is it a wise decision or should I invest the money somewhere else and pay the home loan until 30 years? in Financial Goals Planning[1] Prasanna Bhalerao's share of Prasanna Bhalerao's answer to My home loan tenure is 30 years and I am willing to complete the same within 10-12 years. Is it a wise decision or should I invest the money somewhere else and pay the home loan until 30 years? in Financial Goals Planning[1] Prasanna Bhalerao's share of Prasanna Bhalerao's answer to My home loan tenure is 30 years and I am willing to complete the same within 10-12 years. Is it a wise decision or should I invest the money somewhere else and pay the home loan until 30 years? in Financial Goals Planning[1] Prasanna Bhalerao's share of Prasanna Bhalerao's answer to My home loan tenure is 30 years and I am willing to complete the same within 10-12 years. Is it a wise decision or should I invest the money somewhere else and pay the home loan until 30 years? in Financial Goals Planning[2] Prasanna Bhalerao's answer to Is it smart to take out a loan for an apartment?[2] Prasanna Bhalerao's answer to Is it smart to take out a loan for an apartment?[2] Prasanna Bhalerao's answer to Is it smart to take out a loan for an apartment?[2] Prasanna Bhalerao's answer to Is it smart to take out a loan for an apartment?[3] Prasanna Bhalerao's answer to What should be the approach or strategy to buy a house? Assuming a salary of 60000rs.[3] Prasanna Bhalerao's answer to What should be the approach or strategy to buy a house? Assuming a salary of 60000rs.[3] Prasanna Bhalerao's answer to What should be the approach or strategy to buy a house? Assuming a salary of 60000rs.[3] Prasanna Bhalerao's answer to What should be the approach or strategy to buy a house? Assuming a salary of 60000rs.