Poverty in India: Causes and Measures to Alleviate Poverty

Various causes of poverty are listed below:

Rapid growth of population

• Population explosion is the single most factors responsible for high level of poverty in India. This rise is mainly due to fall in death rate and more birth rate.

Slow economic growth

• Slow economic growth of India is one of the main causes of rising poverty level in the country. Low economic growth leads to low per capita income.

Inflation

• Persistent rise in the prices of essential commodities pushes the people living near above the poverty line into below poverty line.

Unemployment

• Rising unemployment increases the dependency level, which will push the country into poverty.

Measures to Remove Poverty

Higher economic growth

• When the pace of economic growth increases more people will be employed. With increase in the level of employment, level of income will also increase. A persistent rise in the level of income lowers the level of poverty.

Inclusive growth

• The benefits of the growth should reach the lower strata sections of the society. Inequalities should be minimised to the lowest level through discriminatory taxation system, provision of essential amenities and enforcement of minimum wages.

Reduction in population growth rate

• Large size population creates pressure on natural resources. Containment of population growth is essential for reducing poverty.

Stability in price rise

• Price stability is an essential pre-requisite of poverty alleviation. If the prices continue to rise, the standard of living of poor will continue to deteriorate. It is achieved through balance of demand and supply of goods and services.

Development of rural economy

• Agriculture should be accorded a high priority to remove rural poverty. Provision of rural infrastructure, financial assistance and land reforms are essential to remove poverty at the grass-roots level.

Balanced regional development

• Central government should create an environment for balanced regional development. It can be achieved through provision of special assistance to needy states.