Discuss the major reasons for poverty in India.

Poverty has been the bane of existence for about 26% of the entire Indian population. (2000)The major reasons for this extreme amount of poverty arise from-

i) Rapid population growth- It is one of the most important causes. Since 1951, the rise in population has been recorded from 36 crores to 102.7 crores in 2001. This unprecedented boom in population resulted in an excessive subdivision and fragmentation of land holdings. As an outcome of this, per person land availability decreased to such a level that it became increasingly difficult for households to acquire sufficient land to produce a livelihood. Moreover, this growth in population also affected the dependency ratio causing lower per capita consumption expenditure which is insufficient to meet the basic needs of a family. Thus, it affected growth in per capita income, saving and capital formation which together forms the crucial factors for poverty reduction.

ii) Prolonged Colonial Administration- The policies that were launched by the British Government hampered India’s economic growth. Development was of very low level during the British rule. Traditional handicrafts and industries especially the textile industries were worst affected.

iii) Illiteracy- One of the most important causes of poverty in India. Many poor people don’t send their kids to schools and make them work as child labour. In some cases, even if they want they are unable to give them proper education due to economic instability. Illiterate people have very fewer employment opportunities and many of them remain unemployed.

iv) The disparity in the ownership of land holdings- In rural areas, it is one of the major causes for poverty. The unequal distribution of land, scarcity of land resources and failure in proper implementation of land reform policies contributed to it.

v) Inequalities in income- It is the result of the unequal distribution of land and other resources. In rural areas there was a kind of negligence in case of implementation of land reforms. Proper implementation could have improved the lives of many poor.

vi) Socio- cultural factors- People in India have certain social obligations. To fulfil them such as marriage and religious ceremonies, people spend a lot of money on such functions, even poor people. This makes the poor poorer.

These are some of the major causes of poverty in India. If they are dealt with in a proper way poverty can be overcome.