Question

What are the three main causes of poverty in India?

Answer 1

Explanation:

• Reasons for poverty in India: Colonialism, rural economy, unemployment, population pressure, low productivity in agriculture, high prices, and socio-cultural and economic factors. Paraphrase any three.

Solution:

• Colonialism: India was ruled by the British for more than a century. British policies discouraged India's traditional textile industries, as well as small and cottage industries. This resulted in fewer job opportunities and a slower rate of income growth. As a result, the overall poverty rate could not be reduced.
• Rural economy: India is largely a rural economy with agriculture employing 70% of the total population. However, agriculture is lagging behind, contributing only one-third of national income. Moreover, disguised unemployment in agriculture reduces the sector's earnings leading to poverty.
• Unemployment: Increasing population and inadequate job opportunities cause chronic unemployment and underemployment. Educated unemployment in urban areas and disguised unemployment in rural areas cause the lack of income which increases poverty.