Causes of Poverty in India


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Causes of Poverty in India:

The main causes of rural poverty in India are as follows :
1. Unemployment and underemployment: Even during the year in which there are good rains, agricultural labourers do not get work throughout the year.

        2. Population pressures : Because of population pressure, there are many dependents per every earning member. And there is the problem of disguised unemployment. On a farm, there may be work for only four
persons. But six or seven persons may be there on the farm. The marginal productivity of the extra persons is almost zero.

        3. Indian agriculture is marked by low productivity. So majority of those engaged in agriculture are poor.

        4. A majority of people in rural areas do not have enough assets, especially land. The main reason for this is the concentration of land in the hands of a few families.

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