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Causes of Poverty 1) Slow Economic Development One of the important cause of poverty is slow economic development. During planning period, the rate of economic develeopment in India was less than not only developed countries but also less than many developing countries 2) Little Trickle Down Effect In india there has been development in almost all the sectors of economy, but its trickle effect has reached only to certain class of people and still large population of country has remained poor. 3) Economic Inequality Poverty in our country cannot be removed simply by increasing production or checking growth of population. What is of paramount importance is that inequality in the distribution of income and concentration of wealth should be checked. Government can reduce inequality of income and check concentration of wealth by pursuing suitable monetary and price policies. 4) Unequal distribution of land Holding One of the important cause of poverty is unequal distribution of land holding. According to recent study, top 3% agriculture families own 26% of total cultivated land while bottom 55% farmers hold less than 10% of total cultivated land 5) Unequal distribution of Benefits of Development In order to remove poverty, mass consumption goods and food grains etc. should be distributed first among the poor population. Existing public distribution system should be re-organised and extended to rural areas of the country. 6) Slow rate of Growth of Agricultural Development The level of productivity in agriculture is low due to subdivided and fragmented holdings, lack of capital, use of traditional methods of cultivation, illiteracy etc. This is the main cause of poverty in the country. 7) Unemployment and Under employment The existence of unemployment and underemployment in the Indian economy is another cause of poverty in India. Unemployment prevails more among casual labour whose proportion in labour force has been increasing and in their case unemployment and poverty go together. 8) Inflation Rate of inflation and level of food prices is an important factor that causes poverty. Inflation, especially rise in food prices, raises the cost of minimum consumption expenditure required to meet the basic needs. Thus, inflation especially rise in food prices pushes down many households below the poverty line. 9) Large family Size Usually it is found that number of children is high among the poor families, which is another cause of poverty. The poor people do not adopt family planning methods to suuficient extent, resulting in large family size. 10) Widespread Illiteracy Now a days it has been accepted that poverty and illiteracy are not different, but actually they are two ends of same spine. Widespread illiteracy is the root cause of poverty. #vnsgu #bcomsem6 #learnwithhimanshunandwani #poverty #causesofpoverty #cainter #12thcommerce #economics