Poverty is one of the biggest social cause in India. Poverty has become the root cause for all the other issues and this becomes a hindrance for the development of the country.
Causes of poverty in India
Main reason of poverty in India are,
Rapidly Increasing Population
India’s population has risen steadily over the years. It has increased at a rate of 2.2 percent each year over the past 45 years, implying that about 17 million people are added to the country’s population per year. This has a direct impact on the demand for consumer goods.
The country suffers from underemployment and disguised unemployment, especially in the agricultural sector. This has resulted in l ow agricultural productivity and a drop in standard of living.
Low productivity in agriculture
Agriculture’s low productivity is a major source of poverty. Low productivity can be caused by a variety of factors. It is primarily due to scattered and subdivided landholdings, a lack of resources, illiteracy about modern farming technology, the use of conventional farming methods, wastage during storage, and other factors.
Low rate of economic development
India’s economic development has been slow. There is an imbalance between the demand for goods and services and the supply of such goods and services.
Increase in price
The country’s price hikes have been steady, contributing to the poor’s burden. Although a few people have benefited, lower-income neighbourhoods have suffered as a result, and they are unable to meet even their most basic needs.
Unemployment is another factor that contributes to poverty in India. When the world’s population increases, so does the number of people looking for jobs. However, there is not enough expansion of job opportunities to satisfy this demand.
Shortage of capital and able entrepreneurship
Capital and entrepreneurship shortages are making it more difficult to increase production.
For nearly two centuries, the British occupation and rule over India has harmed the structure of India’s economy. India, which was once a chief producer has been reduced to a big market. Most of the country’s natural resources were used to support British coffers, and much of the money was syphoned off to the rulers’ homeland.
In addition to economic and commercial factors, social factors obstruct India’s poverty eradication efforts. The rules of inheritance, the caste system, and some customs all are obstacles in this way.