Chapter : 1. Poverty As Challange

Causes of Poverty

1. British Rule : Britishers rules India for more than 100 years. Prior to the Brithsh rule, traditional industries, for instance textile, were flowshing in India. During the British rule, they adopted policies to discourage such industries. This left millions of weavers poor.
2. Rural Economy : In India, 70 % of the total population is engaged is agriculture but its contribution to the national predominantly an agricultural country, it is very much backward in agriculture.
3. Heavy Pressure of Population : Population in India has been increasing very rapidly. Main factors accounting for it is sharp fall in death rate but stable birth rate for the last many decades. This pressure of population serves as a big stumbling block to economic development. Inspite of increase in total production, per capita income is very low.
4. Chronic unemployment and Under employed : Due to increasing pressure on land per hectare availability of land is decreasing. Due to division of land production is decreasing. Agricultural sector is also facing problem of disguised unemployment.
5. Lack of proper Industrialisation : India is very backward from the industrial point of view. Hardly 3 % of population (working) is engaged in large scale industries. No doubt, consumer’s good industries have developed to a large scale but capital and producers goods industries have not year developed properly. We still have to depend on foreign countries with regard to these industries.
6. Social factors : Social factors like illiteracy, large size of family, law of inheritance and caste system are also responsible for prevalence of poverty ridden people.

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