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Causes for Poverty

The basic causes of poverty in India are as follows: (1) Colonial Exploitation: During the British administration, the industrial sector of the economy was completely destroyed. The people were bound to depend on agriculture. The man- land ratio declined giving rise to widespread underemployment and disguised unemployment. Further the Barristers compelled the poor farmers to sell their product at a lower price and sold the British industrial product at a higher price in Indian soil, and accordingly exploited the Indians.

Gradually the country became apprized and the extent of poverty increased with the passage of time during colonial administration. 2. Underdevelopment: Due to under-development and non-economic utilization of natural and human resources, people in the country are not able to get a square meal per day. 3. Inequality: Inequality in the distribution of wealth and Income Is another factor responsible for the abject poverty situation in the country. While large sections of the people are poor, wealth and productive assets have been concentrated with a few hands. 4. Unemployment:

Lack of employment opportunity Is one of the basic causes of poverty. Due to unemployment, there Is lack of purchasing power, effective demand with the people. This in turn results in low investment, low production and again in low income. So Nukes has rightly said: “A country Is poor because It Is poor. ” 5. High Growth Rate of Population: Growth of population Is another factor responsible for poverty In India. The slow growth of Income accompanied by a higher population growth reduces the per capita Income and consumption expenditure and thus Increases poverty. 6. Regional Disparity:

There are extreme regional tattletales leading to a grinding poverty situation against the prosperity of others. States Like Punjab and Harlan are richer In comparison to Briar, Arioso and Madhya Pradesh. 7. Capital Deficiency: Due to shortage of capital, better technique of production could not be Implemented In the economy. Consequently the productivity and efficiency of labor became less leading to low Income and poverty situation. 8. Low technology: Due to adoption of a low level of technology, the volume of production and productivity Is also equally low, leading to a mass poverty situation. Social factors: Due to socio-cultural factors, people In India spend a large portion of their Income extravagantly. Expenditure on marriage, religious ceremonies etc. Forces them to borrow from non- Institutional sources at a higher rate of Interest. The early marriage system, Joint family system, low level of education also account for mass poverty situation. Causes for Poverty By Chilblains Inequality in the distribution of wealth and income is another factor responsible for Unemployment: Lack of employment opportunity is one of the basic causes of poverty.

Due to employment, there is lack of purchasing power, effective demand with the people. Nukes has rightly said: “A country is poor because it is poor. ” 5. High Growth Rate of Growth of population is another factor responsible for poverty in India. The slow growth of income accompanied by a higher population growth reduces the per capita income and consumption expenditure and thus increases poverty. 6. Regional There are extreme regional disparities leading to a grinding poverty situation against the prosperity of others. States like Punjab and Harlan are richer in comparison to

Due to shortage of capital, better technique of production could not be implemented in the economy. Consequently the productivity and efficiency of labor became less leading to low income and poverty situation. 8. Low technology: productivity is also equally low, leading to a mass poverty situation. 9. Social factors: Due to socio-cultural factors, people in India spend a large portion of their income extravagantly. Expenditure on marriage, religious ceremonies etc. Forces them to borrow from non- institutional sources at a higher rate of interest. The early marriage