Causes of Indian poverty
It cannot be attributed to any single cause, its the outcome of the interaction of divers factors, economic and non economic, social as well as political factors.
1 - underdevelopment
The first cause of poverty is the underdevelopment of the country. Due to under development ' a large proportion of population has to go without even the most essential needs of daily life because of low national income and hence aggregate consumption, is too small relatively to enormous size of the population'
2 - inequality
The second cause of poverty is the extreme inequality of income and wealth in the country. In fact as pointed out by the planning commission, underdevelopment and inequality are the twin cause of poverty.
3 - low percapita income
Poverty is also reflected in india by the low per capita income. In 2001-02 India's percapita income was 10753 but in the same time America's p i was 74956 in Switserland 126491 ect..
4 - inadequate grouth rate
One reason for the failure of planning to make a major dent on poverty has been the inadiquate grouth rate of the economy in India.
5- high grouth rate of population
The grouth of population has been very high in India as against the grouth rate of the economy. This has failed to bring about the required improvement in living standards.
6 - unemployment
Poverty is also on the increase with the rise in the number of unemployed. The number of unemployed persons has been increasing with every five year plan. This increasing unemployment and underemployment in families has accentuated poverty.
7 - Backward agriculture
the Indian agriculture is carried on largely with primitive techniques. Small and scattered holding, lack of inputs, exploitative system of land tenure etc. Are responsible for backwardness of Indian agriculture.
8 - backward industries
Industrially too, India is still backward in spite of the existence of some modern industries. Lack of dynamic enterepreneurs, inadiquate finance, paucity skilled and technically trained personnel, irregular supply of power and raw materials , equipments and inefficient labour account for the slow industrialisation of the country. The transport system is also very poor in India.
9 - Inflation
Continuously rising prices is another cause of poverty. When price rise the purchasing power of the money falls and they lead to the impoverishment of the lower middle and poorer section of the society.
10 - social factor
Economic development depends on urges, attitudes and aspiration of the people, Indian people lack initiative and resorcefulness. The cast system, the join family system, and the low of inheritance are great obstacles to economic progress. Thus, Indian social institutions and attitudes hamper economic progress and are responsible for poverty.
11 - Political fact
Being under foriegn rule, India exploited under the Brittish regime. The prosperity of Englend was the primary concern of the Brittish roles. Naturally India remined poor. Since independence, other political factores have affected economic progress. The government had adopted ' GARIBI HATAO' slogan but few take them seriously or believe, that anything can be done to remove poverty.