1. Rapidly Rising Population:
The population during the last 45 years has increased at the rate of 2.2% per annum. On average 17 million people are added every year to its population which raises the demand for consumption goods considerably.
2. Low Productivity in Agriculture:
The level of productivity in agriculture is low due to subdivided and fragmented holdings, lack of capital, use of traditional methods of cultivation, illiteracy etc. This is the main cause of poverty in the country.
3. Under Utilized Resources:
The existence of under employment and disguised unemployment of human resources and under utilization of resources has resulted in low production in agricultural sector. This brought a down fall in their standard of living.
4. Low Rate of Economic Development:
The rate of economic development in India has been below the required level. Therefore, there persists a gap between level of availability and requirements of goods and services. The net result is poverty.
6. Price Rise:
The continuous and steep price rise has added to the miseries of poor. It has benefited a few people in the society and the persons in lower income group find it difficult to get their minimum needs.
The continuously expanding army of unemployed is another cause of poverty. The job seeker is increasing in number at a higher rate than the expansion in employment opportunities.
8. Shortage of Capital and Able Entrepreneurship:
Capital and able entrepreneurship have important role in accelerating the growth. But these are in short supply making it difficult to increase production significantly.
9. Social Factors:
The social set up is still backward and is not conducive to faster development. Laws of inheritance, caste system, traditions and customs are putting hindrances in the way of faster development and have aggravate" the problem of poverty.
10. Political Factors:
The Britishers started lopsided development in India and reduced Indian economy to a colonial state. They exploited the natural resources to suit their interests and weaken the industrial base of Indian economy.
In independent India, the development plans have been guided by political interests. Hence, the planning a failure to tackle the problems of poverty and unemployment.