What is the Poverty Rate of India in 2021?

By BYJU'S Exam Prep

Updated on: November 9th, 2023

The poverty rate in India in 2021 was 7.6%. One of the most recent studies estimates that 23 crore people in India make less than Rs 375 each day. Rapid Population Growth has grown at a rate of 2.2% per year over the last 45 years, which equates to an average yearly population increase of 17 million people.

Poverty Rate of India in 2021

The reasons for the poverty in India are rapid population growth, low agricultural productivity, underutilized resources, economic development, and lack of capital and capable entrepreneurship.

Rapid Population Growth:

  • Over time, India’s population has increased.
  • The population has grown at a 2.2% yearly rate during the past 45 years, with an average annual population increase of 17 million people.
  • Furthermore, this considerably increases consumer product demand.

Low Agriculture Productivity:

  • Poverty is significantly exacerbated by the low productivity of the agricultural sector.
  • The reasons for low productivity might vary widely.
  • It is mostly caused by divided and fragmented landholdings, a lack of money, a lack of knowledge about contemporary farming technologies, the use of traditional farming methods, waste generated during storage, etc.

Underutilized Resources:

  • Particularly in the agricultural sector, the nation experiences underemployment and covert unemployment.
  • This leads to low agricultural productivity and a drop in living standards.

Economic Development:

  • India has had slow economic growth, and there is a discrepancy between the demand for and supply of products and services.

Lack of Capital and Capable Entrepreneurship:

  • A lack of cash and entrepreneurship makes it harder to increase output.
  • The eradication of poverty in India is hampered by social difficulties as well as by economic and commercial ones.
  • Some of the challenges in this area include the caste system, particular traditions, and inheritance laws.


What is the Poverty Rate in India in 2021?

According to the estimates, 7.6% is the poverty rate in India in 2021. 23 crore Indians lived in poverty in 2021, with an estimated poverty threshold of Rs 375 per day. Poverty in India is caused by factors such as rapid population expansion, poor agricultural productivity, unused resources, economic development, a lack of money, and ineffective entrepreneurship.

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