Q.What are the causes for poverty in India?

Poverty in India is the result of several interlinked economic and social causes — rapid population growth, slow and uneven growth, unemployment, inequality in income and land, low farm productivity, inflation, costly social customs, regional imbalance, lack of capital, illiteracy, and poor delivery of welfare schemes.

Poverty is a situation in which a person cannot afford the minimum necessities of life such as food, clothing, shelter, health and education. In India poverty is both widespread and deep-rooted, and the AP Intermediate 2nd-year Economics course (aligned with the NCERT/CBSE commerce curriculum) explains it through a set of connected causes.

Main causes of poverty in India:

1. Rapid population growth. A fast-rising population raises the number of dependents and reduces per capita income, keeping families poor.

2. Slow and uneven economic growth. For many decades growth was too slow to lift the masses, and its benefits did not reach the poorest sections.

3. Unemployment and under-employment. Lack of regular, productive work in both rural and urban areas directly causes income poverty.

4. Unequal distribution of income and assets. A skewed distribution of income and especially of land concentrates wealth in a few hands and leaves the majority with very little.

5. Low agricultural productivity. Since most of the poor depend on farming, low yields, small holdings and dependence on the monsoon keep rural incomes low.

6. Rising prices (inflation). Continuous price rise reduces the real income and purchasing power of the poor.

7. Social factors. The caste system, large family size, and heavy spending on marriages and social ceremonies push many households into debt and poverty.

8. Regional disparities. Backward regions with little industry or infrastructure have higher concentrations of the poor.

9. Shortage of capital and low investment. Low savings limit investment in productive and job-creating activities.

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