Discuss the causes of poverty in India

Discuss the causes of poverty in India.

Causes of poverty:

  1. Unemployment: Poverty level increases with a rise in the number of unemployed. Because of unemployment, the number of dependents on the working population is increasing. As a result, per head consumption expenditure is declining and a majority of people are living in poverty.
  2. Indebtedness: Mostly, poor people depend on borrowing from the richer section of the society. Hence, poor people’s level of indebtedness increases and is also responsible for poverty in India.
  3. Inequalities of wealth and income: Wealth and means of production are concentrated in a few hands while majority of the people live below the poverty line. Unequal distribution of means of production and money is a reason behind the existence of poverty in India.
  4. Lack of social welfare: Social well-being lacks because of several factors such as tradition and customs. Poor who reside in slum areas without any facility are considered as backward and their development is low in every aspect.