Economics: Causes For Poverty and unemployment in India (Direct Points)

WELCOME TO YOU

I heartily welcome you to read about few important (Major) causes to explain  why India faced mass poverty. 

Apart from this poverty Now a days, India is moving towards achieving economic development. The per capita income, per capita expenditure, ability to pay taxes, education, human resources are all improving. People are becoming more vigillent. 

This topic is also important for 11th and 12 grade economics students.

----------

Meaning

Poverty can be defined as a social phenomena in which, a session of the people in the society is

enable to satisfy even their basic necessities of life. Living standards is also very low, that society is set

to be with mass poverty. India is suffering from mass poverty even after 65 years of planning. Still

21.9% of population is below the poverty line. 

Generally NITI Aayog is responsible to measure the poverty rates in India.

Causes of poverty in India

There are number of causes which are responsible for the mass poverty in India. some of the important causes are:

• Concentration of economic powers: it means growing economic inequalities in distribution of income and wealth. as a result the poor becomes more poorer and rich becomes the richer..
• Under exploitation of resources: In India the resources which are available are either un utilized or underutilized or miss utilized. India has rich in its resources but they are not utilized in proper way. 
• Heavy population pressure: the rate of growth of population is high, ware as the rate of growth of national income is low. This brings down the per capita income and per-capita expenditure. This increases poverty. Heavy population is also one of the cause to reduce productivity in agriculture. 
• Unemployment: in India the labor supply is more whereas, generating gainful employment is difficult. In India capital is scarce so expansion of industries and establishing of new industries is very difficult. This causes unemployment and poverty. When the income is low, the level of savings are also low. when the level of savings are low, the capital investments are also low. this is the reason for poverty and unemployment. 
• Poor education: another cause for poverty in India is poor education. Poor parents cannot help their children to reach higher educational levels. The income of arts, commerce graduates is more than 6 times of our national income. Education not only helps to reduce poverty but also it helps an individual to think better and to take good decisions, manage resources, etc. education plays a vital role in its economic development. 
• Low consumption levels: shortage in consumption of goods results in low standared of living. There is wide disparities in consumption levels from top rich persons and bottom poor’s. Everyone must get healthy food and nutrition. Health and education are very important.
• Inflation: inflation means a continuous rise in the price for a long period of time. Inflation is also one of the main cause for poverty in India. during inflation the value of money falls. the employees of large companies and rich people can live with their income but the middle class and poor suffers a lot. as a result, the poor finds difficult to purchase even his basic necessities. 

Conclusion (Economics Concepts)

The causes of poverty are not only limited to above points because, there are many other factors which are highly responsible to cause poverty in India. They are:

• Social factors like celebration of religious and other ceremony.
• Unproductive expenditure.
• Focusing on purchasing more reputed commodities rather than quality satisfaction.
• Lack of quality education. 
• more dependent on corporate hospitals and education institutions.

and many more.

Causes for unemployment in India

Unemployment is a significant social and economic problem which India is facing today. Even after 65 years of planned economic development. Unemployment is the situation in which those or willing to

work and able to work at market wage rate but can’t find any work is called

unemployment.

Causes 

• Jobless growth: refers to increase in economic growth with high rate of unemployment.
• Increase in labor force: Labour force means active population who are skilled and employees who are currently working. India experiencing a rapid growth of population along with increase in labour force. 
• Technology: here technology means the capital and machinery used in production process. producers using more capital intensive technology in the production and agriculture. as a result the unemployment is increasing. this kind of replacement of Labours is known as technological unemployment.
• Educational system: Lack of quality education in the country is also causes unemployment. as a result the student cannot become eligible for work. A student must have communication skills, computer skills, technology adapt skill, decision making, managing resources, self reliance etc.
• Neo liberal economic policy: refers to market oriented reforms. these policies caused inequalities in distribution of income in the population groups. generally inequality in distribution of income leads to poverty. and finally, that leads to unemployment. 

Conclusion

Poverty and unemployment are inseparable. they happen each other in response to another. almost the causes for poverty are equally applicable to causes for unemployment. but poverty is more wider concept then unemployment. 

Thanks and regards

ECONOMICS CONCEPTS

HOPE IT IS HELPFUL TO YOU.