Question

Write down two causes of rural Indebtedness.

Answer 1

"Rural indebtedness is caused when farmers or rural people take loan to fulfil their basic needs.

The two main causes of the rural indebtedness in India are as follows:

• Low income: You need to understand that rural people generally have low income due to lack of resources and business and because of primitive farming.

• Inherited debts: This is one of the main reasons behind rural indebtedness in India because debts and loan left by forefathers are now should be paid by their children and this made them poor.

"