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Exercises · Q5

Q.Explain the main causes of poverty in India.

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Poverty in India is the outcome of several interacting factors rather than any single cause:

  1. Rapid population growth raises the number of dependants faster than income can grow, pulling down per-capita income.
  2. Low productivity in agriculture, due to small/fragmented holdings, outdated techniques, and monsoon dependence, keeps a large section of the rural workforce poor.
  3. Unemployment and underemployment, including seasonal and disguised unemployment in agriculture, mean many households lack a stable adequate income.
  4. Unequal distribution of income and assets concentrates land and capital in fewer hands, leaving a large section with little productive asset base.
  5. Low rate of capital formation slows the creation of new employment opportunities.
  6. Social and historical factors, such as caste-based disadvantage, gender discrimination, and low literacy, restrict economic mobility for large groups.
  7. Regional imbalance means poverty is concentrated more heavily in some states/regions with weaker infrastructure or industrialisation. …

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