Causes of Poverty
- Limited Livelihood Opportunities: Lack of access to quality education, skill development, and decent jobs restricts income generation potential, trapping people in poverty.
- Social Inequalities: Caste, gender, religion, and other social factors can create barriers to accessing education, healthcare, and economic opportunities.
- Informal Sector Dependence: A large share of India’s workforce relies on the informal sector, characterized by low wages, job insecurity, and limited social protection.
- Inadequate Infrastructure: Poor infrastructure, including transportation, irrigation, and electricity, can limit economic activity and agricultural productivity in rural areas.
- Demographic Pressures: India’s large and growing population puts a strain on resources and creates challenges in job creation.
Terms
- Poverty Line: The conventional approach to measuring poverty is to specify a minimum expenditure (or income) required to purchase a basket of goods and services necessary to satisfy basic human needs and this minimum expenditure is called the poverty line.
- Poverty Ratio: The proportion of the population below the poverty line is called the poverty ratio or headcount ratio (HCR).
- Poverty Trap: Poverty trap is a spiraling mechanism which forces people to remain poor. It is so binding in itself that it doesn’t allow the poor people to escape it.
