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Exercises · Q6

Q.Explain any four causes of poverty in India.

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Poverty in India arises from multiple interacting causes rather than a single factor. Four important ones are:

  1. Population pressure: A sustained high rate of population growth spreads a country's limited land, capital and public services over an increasing number of people, slowing the growth of per-capita income and making it harder for poverty to fall even when total output rises.

  2. Unemployment and underemployment: A significant portion of the workforce either cannot find work at all or is only partially/irregularly employed. Since many poor households depend entirely on wage labour, being unemployed or underemployed directly translates into insufficient income to cross the poverty line.

  3. Low productivity in agriculture: A large share of India's workforce continues to depend on agriculture, where output per worker has historically been much lower than in industry or services. Because incomes in low-productivity agriculture tend to be low, a large agriculture-dependent population remains near or below the poverty line. …

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