Jul 06, 2015

5 PRIMARY FACTORS CAUSING POVERTY IN INDIA

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India happens to be a rich country inhabited by very poor people. – Dr Manmohan Singh.

The Millennium Development Goal (MGD) is going to come to an end in December; still nearly 300 million people live in extreme poverty in India. Has anybody even thought of the reason for this poor condition of India? Let me tell you some of the major ones.

Climatic causes

The tropical climate of India reduces the capacity of people especially the rural one to work due to which production severely suffers. Moreover, absence of timely and adequate rainfall also affects agricultural production which further leads to poverty.

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Demographic causes

Rapid growth of population: The population during the last 45 years has increased at the rate of 2.2% per annum which is greater than the growth in national income. Due to this, per capita income of the country is lowering with the eventual increase in labor class people which tend to increase poverty.

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Size of family

Size of the family plays a vital role in determining the financial condition especially in rural areas. The larger the size of family, the lower is the per capita income, and the lower is the standard of living. Always remember, a small family is a happy family!

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Economic causes

Unequal distribution of land and other assets: In India, most land has traditionally been under the control of a few landlords, leaving the vast majority landless. This unequal distribution is not only confined to land but also wealth, resources and other assets, being the major reason for poverty in India.

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Low agricultural productivity:

Agriculture sector, the source of employment for two-third of the population in India, still follows the traditional methods of cultivation due to lack of literacy and capital, resulting in low productivity and hence leading to poverty.

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Immobility of labor:

In many cases, laborers are not willing to leave their homes even if they are offered higher wages. This can be due to their conservative, illiterate and superstitious mindset that makes them think of poverty to be something predestined for them.

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Lack of employment opportunities:

The continuously expanding army of unemployed is another cause of poverty. Because of lack of employment opportunities and ideas, people remain either unemployed or underemployed resulting in higher rate of increasing job seekers than the expansion in job opportunities.

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Social causes

Education: The earning power is endowed in the individual by investment in education and training. Poor people generally do not have enough funds for human capital investment and lack of human investment contributes to the low earning capacity of individuals and this, eventually leads to poverty.

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Caste system:

Due to the rigid caste system in India, the low caste people could not participate in the game of economic progress and are subordinated by the high caste people leading to poverty especially in rural areas.

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Social customs:

Even now, large percentage of annual earnings of people leaving in India is spent on social customs like dowry, grand wedding ceremonies, death feast etc. for the sake of reputation in society, resulting in debt and poverty.

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Growing indebtedness:

Moneylenders, in rural areas, exploit the poor by charging exorbitant rates of interest and by acquiring the mortgaged land in the event of non-payment of loans by poor farmers that further accentuate their poverty. Such indebted families continue to remain under the poverty line for generations because of this debt-trap.

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Political causes

Corruption and leakages in government schemes are widespread in India. Every time, a new party comes up with new development plans to conquer unemployment and poverty, but always a failure sometimes due to corruptions, sometimes people themselves become a hurdle. What may be the reason, the end result is eligible poor are not able to get the benefits they deserve.

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No doubt, development is there, for us, for the people who are able to read this article. But 25 percent of people still can’t read it and more is number when it comes to affordability. Have some suggestions, any stories related to this, please do write in.
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