Poverty is a state of an individual wherein the individual is not earning enough to afford the basic necessities of life.
The main causes of poverty in India are given below:
Increase rate of rising population: Rapid population growth is likely to reduce per capita income growth and well-being, increasing poverty. In densely populated developing nations with pressure on land, rapid population growth increases landlessness and hence the incidence of poverty.
Less productivity in agriculture: More than half per cent of the workforce works in the agricultural sector, and it provides raw materials to other industries. Less productivity due to lack of irrigation facilities, unfavorable climate or monsoon, and overuse of fertilizers leads to low income or poverty in India.
Less utilization of resources: India has rich natural resources but lacks modern technology. It does not utilize it properly. Examples are wind energy, water energy, solar energy, etc. Due to this, employment is not generated, leading to poverty.
A short rate of economic development: The Indian economy has not reached a two-digit economic growth rate due to the low economic development of the economy. India faces a crucial problem of poverty.
Increasing price rise: Increasing price of the commodity leads poor consumption in India due to low income. When prices rise, the purchasing power of money falls and thus affects the poor and middle-income groups badly. In this way, rising prices are responsible for poverty in India.
Unemployment: The existence of unemployment and underÂemployment in the Indian economy is another cause of poverty in India. Unemployment prevails more among casual labour, whose proportion in the labour force has been increasing, and in their case, unemployment and poverty go together.
Unequal distribution of income: The unequal distribution of income and opportunity between different groups in society leads to poverty.
Regional poverty: Some Indian states like Maharashtra, Gujrat, Kerala, Punjab, and Karnataka are developing their economy very fast but compared to other states like Bihar, Jharkhand, Orisa, and Madhya Pradesh are less developed, and when we calculate poverty in India, it shows huge poverty differences.
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Final Answer:
The main causes of poverty in India are unskilled, poorly educated population and a non-commercial agricultural economy. Increase rate of rising population, less productivity in agriculture, less utilization of resources, a short rate of economic development, increasing price rise, unemployment, unequal distribution of income, regional poverty.