Discuss the Major Reasons for Poverty in India

By BYJU'S Exam Prep

Updated on: November 9th, 2023

The Major Reasons for Poverty in India are the rising population, slow economic development, unemployment, unequal distribution of income and resources, etc. In addition to being a social problem, poverty significantly impedes the progress of our nation. Although poverty may appear to be a singular issue, it is actually the root of almost all other issues in India due to a number of factors.

Major Reasons for Poverty in India

As mentioned above, there are some key reasons or causes for poverty in our country and around the world. Although there are too many things that contribute to it, let’s discuss the Major Reasons for Poverty in India such as:

  • Rising population: India, the second-most populous nation on earth, is actually experiencing a population crisis. In the past 45 years, the population has grown by 2.2% annually. And this has an immediate impact on the need for resources.
  • Less economic development: Due to India’s slow economic development rate, there is an imbalance in the demand and supply of consumer goods and services.
  • Unemployment: With a rapidly increasing population, more and more people are 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 reduce income inequality 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.


Discuss the Major Reasons for Poverty in India

Several social, political, and economic factors influence the problem of poverty in India. Some of the main Reasons for Poverty in India include the growing population, unemployment, sluggish economic growth, unequal distribution of resources and income, as well as underutilized resources. In order to improve the state and living conditions of the citizens, it is crucial to deal with the causes of poverty in India.

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