Major Reasons for Poverty in India

British Colonial Rule: The policies of the colonial government ruined traditional Indian handicrafts and discouraged the development of modern industries like textiles. This led to a massive loss of livelihood and a very low rate of economic growth until 1947.

• High Population Growth: A massive population increase combined with slow economic growth resulted in a very low per capita income.
• Lack of Job Opportunities: The industrial and service sectors have not been able to create enough jobs to absorb the millions of people looking for work.
• Agriculture Dependence: Most of the poor depend on agriculture, which suffers from low productivity, small landholdings, and heavy dependence on monsoon rains.

• Huge Income Inequalities: Resources and wealth (especially land) are very unequally distributed in India.
• Social Obligations: People in India (even the poorest) spend a lot of borrowed money to fulfill social obligations and observe religious ceremonies (like weddings), pushing them into a severe debt trap.