Q.Define Poverty. What are the causes for poverty in India?

Poverty means a household cannot afford the minimum necessities of life. In India it is caused mainly by rapid population growth, slow growth and unemployment, low farm productivity, unequal distribution of income and assets, poor education and skills, price rise and social/regional backwardness.

This is a standard long-answer topic in AP Intermediate 2nd year Economics; the AP syllabus treats poverty in line with the NCERT/CBSE curriculum on Indian economic development.

Meaning of poverty. Poverty is a situation in which an individual or family is unable to obtain the minimum basic requirements - food, clothing, housing, health care and education - needed for a reasonable standard of living. In India poverty is measured against a poverty line defined in terms of a minimum level of consumption expenditure (based on calorie norms).

Causes of poverty in India:

1. Rapid population growth. Fast growth of population increases the number of dependants and keeps per capita income and savings low.

2. Low economic growth and unemployment. For long periods growth was slow, and jobs did not expand fast enough, leaving many without adequate income.

3. Dependence on low-productivity agriculture. Most of the poor depend on agriculture, which suffers from small holdings, low productivity, disguised unemployment and seasonal work.

4. Unequal distribution of income and assets. Land, capital and income are concentrated in a few hands, so the benefits of growth do not reach the poor.

5. Low levels of education and skills. Illiteracy and lack of skills keep the poor in low-paid, insecure work.

6. Inflation. Continuous rise in prices of essential goods erodes the real income and purchasing power of the poor.

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