Poverty is a wide topic. There are different factors causing poverty. Before independence British rule made India’s people poorer. At that time India export raw material and agricultural products to Britian. Income generated from export is not enough to meet daily needs. At that time condition of people becoming worst. Hunger and indebtedness increases. People just became slave of British. Poverty increases as people don’t have money or any asset.
After independence India got a chance to get recover. Government tried to distribute land to landless. But this also not become successful as farmers don’t have skills and money to work on land. After independence also poverty exist. The causes of poverty in India are as follows:-
- Social, economic and political inequality
- Social exclusion
- Unequal distribution of wealth
- Low capital formation
- Lack of infrastructure
- Lack of demand
- Pressure of population
- Lack of social welfare nets
All these factors causes Aggregate poverty is there in the economy. The individual poverty is called Aggregate poverty.