Poverty can be attributed to several key factors, including:
Rapid Population Growth among the Poor: The issue of poverty in India is exacerbated by the high rate of population growth, particularly among the impoverished. Factors such as illiteracy, traditional beliefs, lack of family planning, and a preference for male children contribute to large-sized families with insufficient income to meet basic needs.
Unemployment and Indebtedness: India faces chronic unemployment and underemployment, with approximately 28 million people unemployed (Economic Survey 2015-16). This situation leads to reduced output, lower income, and increased indebtedness, intensifying the challenges of poverty.
Low Rate of Economic Development: A crucial factor contributing to poverty is the low rate of economic development, resulting in a low per capita income and, consequently, a lower standard of living. The sluggish growth in per capita income perpetuates the cycle of poverty.
Low Education: The inadequate education of the poor is a significant cause of poverty. Limited literacy and semi-education confine individuals to low-paying jobs, explaining the persistently low income levels. Additionally, illiterate farmers struggle to adopt modern farming methods.
Inflationary Pressures: The continuous escalation of prices, especially for essential goods, intensifies the hardships of the poor. Soaring prices erode the real income of those with fixed and low incomes, reducing purchasing power and contributing to a lower standard of living.
Social Factors: Various social factors, such as the caste system, joint family structure, religious beliefs, and inheritance laws, impede economic growth. For instance, traditional farming practices persist among farmers who adhere to orthodox methods.
High Level of Migration from Rural Areas: Significant migration from rural to urban areas in search of employment has resulted in a noticeable increase in urban poverty.
Failure to Implement Land Reforms: Inefficiencies in the implementation of land reforms, often due to a lack of political will, contribute to increased poverty in rural areas.
Capital Deficiency: The lack of capital formation in India hampers economic growth, leading to low production capacity and increased poverty.
Globalisation: The process of globalization has pushed many households below the poverty line. Agricultural land, previously used for staple production, now focuses on export crops, contributing to a decline in production. Liberalization forces small farmers to compete in a global market with low agricultural commodity prices.
Objective Type Questions
1. What is a significant factor contributing to the high rate of population growth among the poor in India?
a) Lack of healthcare
b) Lack of entertainment
c) High literacy rates
d) Abundant food supply
Answer: a) Lack of healthcare
2. What is one consequence of chronic unemployment and underemployment in India?
a) Increased per capita income
b) Reduced output and lower income
c) Enhanced economic development
d) Decreased indebtedness
Answer: b) Reduced output and lower income
3. What does the low rate of economic development in India contribute to?
a) High per capita income
b) Lower standard of living
c) Reduced poverty levels
d) Improved education
Answer: b) Lower standard of living
4. Why is inadequate education considered a significant cause of poverty in India?
a) It leads to higher-paying jobs.
b) It limits individuals to low-paying jobs.
c) It accelerates economic development.
d) It promotes modern farming methods.
Answer: b) It limits individuals to low-paying jobs.
5. What impact does inflationary pressure, especially on essential goods, have on the poor in India?
a) Increases real income
b) Boosts purchasing power
c) Reduces standard of living
d) Promotes economic growth
Answer: c) Reduces standard of living
6. Which social factor impedes economic growth in India, particularly among farmers?
a) Cultural diversity
b) Caste system
c) Urbanization
d) Technological advancement
Answer: b) Caste system
7. What is a consequence of significant migration from rural to urban areas in India?
a) Decreased urban poverty
b) Increased rural prosperity
c) Noticeable decline in migration
d) Rise in urban poverty
Answer: d) Rise in urban poverty
8. Why do inefficiencies in the implementation of land reforms contribute to increased poverty in rural areas?
a) They promote equal distribution of land.
b) They discourage agricultural practices.
c) They hinder economic growth.
d) They lead to overproduction.
Answer: c) They hinder economic growth.