Question

Discuss the major reasons for poverty in India.

Answer 1

Well, I will try to keep this as short as possible.
1) High population. With our GDP and such high population, per capita income is way too less for surviving with basic necessities.

2) Distribution of wealth. Very well known fact that distribution of wealth is very unequal in India. Reason again could be pointed out to point number 1 of this answer.

3) Low education penetration, lack of opportunities. Even developed nations with less population face the issue of unemployment. New opportunities in India aren’t that much as compared to sheer number of individuals that are atleast in an age group that can be employed.

4) Not as industrialized. 50% of Indian population is in agriculture industry which contributes to 18% of GDP. China industrialized a lot before becoming what it is today. Britishers had a hold all over globe after industrial revolution.

5) Domestic demand. Its not as high and shall improve over a period of time. Very few individuals pay income tax and as mentioned in point number 4 of this answer, many are exempt from income tax as agriculture is exempt from income tax. This results into high indirect tax. High indirect tax means people have less money for to expend for goods and services. This results into reduced demand. Another hampering factor is lack of social security which means people are saving more for their retirements.

Answer 2

The main causes for poverty in India are:

• Hestorical reasons i.e. the low level development under British administration.

• Some policies of the government led to unemployment in rural areas.

• Green revolution led to unemployment ad it used modern techniques and less labour.

• Increasing population is one of the major reason.

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