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Home > Categories > Arts and Humanities > Humanities > View Advice  

Query from: Anonymous, India, 06/07/11
Topic: HUMANITIES      Submitted on:
Subject: Why are people in india poor

Please provide your answer WITHOUT using links or attaching images, docs, etc. (You must still give your source, however).
Attention Council Members: If this query is in the wrong category, be sure to put it in the appropriate category.

Here is the question: Why are people in india poor

Rate = 3 (Rated by 2 Council Members)
[ This query closed ]
Response from: Gowri Raman,   
Featured Member on

The following can be cited as the main reasons to call India a poor country:

Over-reliance on agriculture.

There is a surplus of labour in agriculture. Farmers are a large vote bank and use their votes to resist reallocation of land for higher-income industrial projects. While services and industry have grown at double digit figures, agriculture growth rate has dropped from 4.8% to 2%. About 60% of the population depends on agriculture whereas the contribution of agriculture to the GDP is about 18%.

High population growth rate:

Although demographers generally agree that this is a symptom rather than cause of poverty.

Licence Raj:

It refers to the elaborate licenses, regulations and the accompanying red tape that were required to set up and run business in India between 1947 and 1990. The License Raj was a result of India's decision to have a planned economy, where all aspects of the economy are controlled by the state and licenses were given to a select few. Corruption flourished under this system.

The labyrinthine bureaucracy often led to absurd restrictions - up to 80 agencies had to be satisfied before a firm could be granted a licence to produce and the state would decide what was produced, how much, at what price and what sources of capital were used.

But the richer people are getting more and more and the balance seems ot be shifting.

Rate = 5 (Rated by 1 Council Member)

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Response from: Rajesh Kumar Mishra,   
Registered Member on
Source: This information comes from my own knowledge.
There are two important factors which are responsible for poverty in India. These two important factors are population and corruption. India is having a population of about 1200 million people resulting little share for individual. Further any measure by the Government to improve the life style of the people is adversely affected by corruption.

Rate = 4.5 (Rated by 1 Council Member)

Response from: sambasivan s,   
Council Member on
A Synopsis by IndiaOneStop.Com

Even more than 50 years after independence from almost two centuries of British rule, large scale poverty remains the most shameful blot on the face of India.

India still has the world’s largest number of poor people in a single country. Of its nearly 1 billion inhabitants, an estimated 350-400 million are below the poverty line, 75 per cent of them in the rural areas.

More than 40 per cent of the population is illiterate, with women, tribal and scheduled castes particularly affected.

It would be incorrect to say that all poverty reduction programmes have failed. The growth of the middle class (which was virtually non-existent when India became a free nation in August 1947) indicates that economic prosperity has indeed been very impressive in India, but the DISTRIBUTION OF WEALTH has been very uneven.

The main causes of poverty are illiteracy, a population growth rate by far exceeding the economic growth rate for the better part of the past 50 years, protectionist policies pursued since 1947 to 1991 which prevented large amounts of foreign investment in the country.

Poverty alleviation is expected to make better progress in the next 50 years than in the past, as a trickle-down effect of the growing middle class. Increasing stress on education, reservation of seats in government jobs and the increasing empowerment of women and the economically weaker sections of society, are also expected to contribute to the alleviation of poverty.

Eradication of poverty can only be a very long-term goal in India.…

Rate = 4.5 (Rated by 2 Council Members)

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Response from: usha gurnani,   
Council Member on
It is probably an often thought question, but rarely answered correctly by most of the people. What makes a country like India poorer than a country like say America? I have tried to answer this question since I was a kid, then as an adult. Lets see, most people might answer to that question as “India is poor because it lacks so and so “, the effect being something India does not have because its poor, and US has because its richer, and not a cause of Indian poverty. For example, some people might answer “India is poor because it lacks infrastructure western countries have”, or “India is poor because of lack of education among people”, or “India is poor because its very corrupt, and it has politicians who manipulate people etc etc”. The problem here is simple, almost all these answers are effects, India does not have the infrastructure of western countries because India is poor, it doesn’t need that infrastrucutre, you cannot spend Rs 500 million per year on a road which brings per user cost is Rs 5,000 per month, and the average salary of people using that road is Rs 10,000 per month. Why not? Because if you did build a luxury road like that for people this poor, you are wasting resources more than you are creating them. When India becomes richer better infrastructure will follow, even if govt is the only entity building it, they will have more money to spend on infrastructure. You cannot create prosperity by creating one effect and hoping other effect will follow. Similarly, the stuff about Indian people being educated, well if you are going to work on a construction site for all your life(someone has to work there), there is no point in spending so much money on your education which could have gone towards creating more job opportunities for you. By trying to create this effect, by educating 100,000 workers who will be working on manufacturing all their lives, and then ending up with having jobs for only 60% of them isn’t really a better outcome. A bit matured people who understand how things worked, they will come to the conclusion that India is poor because it has less money than America, therefore India is poor and America is richer. But then that was incorrect too when you will find out that Indian govt has the power to print any amount of money possible. Why can’t Indian govt print more money, give some to everyone and make everybody richer. Apparently its not that easy as it may sound, when money supply is increased, prices of commodities rise soon thereafter. So even if poor people are given a lot of money, that will just raise the prices of the various commodities they might buy thereby bringing them back to same level of poverty as before(more or less). I know a lot of people who know the correct answer to the question stated in the title. India is poorer than US because it has less capital than latter, and capital isn’t the same thing as money.

Rate = 5 (Rated by 1 Council Member)

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