Discuss the major reasons for Poverty in India

By Esha Dhawan|Updated : June 16th, 2022

Poverty is not only a social issue but also a major hindrance to the development of our country. And while it may seem like a singular problem, there are various factors attached to poverty that make it the root cause of almost all other problems in India. So, what are the major reasons for poverty in India? Let’s dig deeper to find out.

Major causes of Poverty in India

Although there are too many things that contribute to it, let's discuss the major reasons for poverty in India such as:

  • Rising population: Being the second most populated country in the world, India is truly facing a population crisis. The rate of population has increased at 2.2% every year in the past 45 years. And this directly affects the demand for resources. 
  • Less economic development: Due to the slow rate of economic development in India, there is an imbalance in the demand and supply of consumer goods and services. 
  • Unemployment: With a rapidly increasing population, there are more and more people looking for employment. Since there are more job seekers than job opportunities, the unemployment rate has been rising quickly and contributing to poverty. 
  • Unequal distribution of resources: India lacks a robust distribution system, which is why there is an uneven distribution of resources. As a result, the rural and semi-urban population is still suffering.
  • Income inequality: The government needs to work on reducing inequality of income and check the concentration of wealth in India. Bringing suitable monetary policies can help with this. 
  • Social aspects: Lastly, social factors like the caste system, rules of inheritance, and archaic customs stand in the way of development and are a major cause of poverty in India. 

Summary:

Major Causes of Poverty in India

Various social, political, and economic factors contribute to the issue of poverty in India. The rising population, unemployment, slow economic development, unequal distribution of resources and income, as well as underutilised resources are some of the major reasons for poverty in India. 

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