Q.What are the causes for poverty in India?

Poverty in India is the result of several interlinked causes — fast population growth, inadequate growth and employment, low farm productivity, unequal distribution of income and land, price rise, and social handicaps like illiteracy — which together keep a large section of people below the poverty line.

This is a standard 10-mark development question in the AP Intermediate 2nd-year Economics course.

Causes of poverty in India

1. Rapid population growth. A fast-growing population raises the number of dependants and spreads the available income and resources thinly, pushing more people into poverty.

2. Low rate and uneven pattern of economic growth. For long periods growth was slow, and even when it was fast the benefits did not reach the poorest sections, so poverty persisted.

3. Unemployment and underemployment. Lack of regular, productive work — especially disguised and seasonal unemployment in rural areas — leaves millions without adequate income.

4. Low agricultural productivity. Since most of the poor depend on agriculture, low yields, small holdings and dependence on the monsoon keep farm incomes low.

5. Unequal distribution of income and assets. Concentration of land and wealth in a few hands means the gains of growth bypass the poor, widening the gap between rich and poor.

6. Inflation / rising prices. A continuous rise in the prices of essential goods reduces the real income of the poor and fixed-income groups, deepening poverty.

7. Regional imbalances. Backward regions with poor resources and little investment have higher concentrations of poverty.

8. Social causes. Illiteracy, lack of skills, large family size, indebtedness, caste-based disadvantages and poor health keep people trapped in a vicious circle of poverty.

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