India is mainly a rural country. Nearly 68% of the people reside in the rural area. The reasons for rural poverty are multi dimensional. The reasons are social, economical, geographical.
- Economic cause
- Low agricultural productivity.
- Over reliance on agriculture.( quote the data)
- Unequal distribution of land and other assets
- Decline of Village industries
- Immobility of labor
- Lack of inhouse employment opportunities
- Social cause
- Poor education infrastructure
- Caste system
- Joint family system
- Social customs: pressure on pocket
- Lack of access to formal credit, Under money lenders, Evergreen indebtedness
- C) Geographical Reason
- Heterogenous availability of resources( quote data)
- Lack of irrigation facilities( quote data)
- Monoculture, lack of diversification
- Regional imbalance
- Poor exploitation of minerals
- Poor fertility of land
- Poor agricultural growth
- Natural climate calamities like cyclone, thunderstorm and increase in their intensity due to climate change
- Demographic factors:
- Rapid growth of Population(quote data)
- Size of the family( TFR)
- Governance related
- Poor PDS system
- Poor capital formation
- Poorly targeted poverty alleviation schemes
- High corruption
- Poor infra: education, health etc.
- Lethargic approach towards revival of MSME
- Microscopic approach on diversification of agriculture
- Politicisation of policies like loan waiver