Question

What are the three main causes of poverty in India?

Options

• Rapid growth of population 

• Lack of employment opportunities 

• Decline of village industries 

• All of the above 

Answer 1

All of the above

Explanation:

The following are the three main causes of poverty in India:

1. Rapid growth of population:
   People's poverty is exacerbated by rapid population expansion. The rate of increase in population outpaces the rate of increase in national GDP. Population expansion not only makes it more difficult to eradicate poverty, but also lowers per capita income, increasing poverty. The poor bear a disproportionate share of the cost of this decrease in per capita income. Faster population growth increases labour supply, which tends to lower wage rates.
2. Lack of employment opportunities:
   Poverty is reflected in unemployment. People are either unemployed or underemployed due to a lack of job possibilities. Small and marginal farmers, as well as landless agricultural laborers, account for the majority of the unemployed and underemployed employees.
3. Decline of village industries:
   New factories and industries are currently being built in rural areas as a result of industrialization. In terms of quality and pricing, village industries are unable to compete with them. As a result, they've been shut down. Workers are fired from their jobs and forced to live in poverty.