What are the Causes of Poverty in India?

Causes of Poverty:

(a) Prior to the British rule, traditional industries, for instance, textiles were flourishing in India. During the British rule they adopted policies to discourage such industries. This had left millions of weavers poor. Even after fifty years of Independent India, we can find a major section of the people engaged in handicraft industries as down trodden.

(b) In the absence of alternative occupations excessive dependency on agriculture leads to low levels of income for the rural masses.

(c) Majority of the rural poor is not only earning a low income but also do not have enough land and machinery. There are also landless labourers and people without work. Land Reforms which aimed at re-distribution of assets and improvement of the poor in rural areas were not implemented by the government effectively.

(d) Social factors like illiteracy, large size of family, law of inheritance, and caste system are also responsible for prevalence of poverty-ridden people.

Removal of Poverty:

(a) The government believed that efforts towards developing the heavy industries and green revolution would create employment opportunities and income, would lead to rapid economic development.

(6) Several land reform measures such as abolition of zamindari system, security of tenant farmers against eviction, fixation of rents, fixation of ceilings on land holdings, and distribution of surplus land among small and landless farmers were undertaken by the government.

(c) Cottage and small-scale industries which employ more labourers and less machinery were encouraged. The Government also reserved some production activities solely for these industries.