Causes of Poverty: Main causes of poverty are as follows:
1. Social causes: In our society, scheduled castes occupied the lowest position. They did not possess any property. So, they remained poor for centuries generation after generation. Heavy expenditure on performance of social customs, traditions, rituals also make many people poor. People sell their land and property to pay dowry and perform shraddha (death rituals) etc.
2. Economic causes: Unequal distribution of land, unemployment, low wages, and indebtedness are responsible for poverty. In our society, a number of families are landless or near landless. They are dependent on others for work and wages. They do not get work round the year. They do not bargain for their wages. They have to work at low wages. They have to take loans at a high rate of interest. If they are not able to repay loan and interest, they have to work as bonded labour on nominal wages.
3. Political causes: Improper policies in the past are also responsible for poverty in our country. We have now opened our market for foreign countries. The production system in our country has now to match its production with them. Heavy industries have adverse influence on rural and cottage industries. Lack of a proper marketing system for agricultural produce and forest produce has also resulted in poverty among agriculturists and forest dwellers. The jobs are also very few even for educated youths. Migration of rural youth to urban areas for work is increasing year by year. It has created slum areas in towns and cities. Slum dwellers do not have proper houses and sanitation. They live in an unhygienic condition. This affects their health which ultimately causes poverty.
4. Religious causes: Religious beliefs and practices also add to poverty in our country. People spend a good amount on performing religious rites and rituals. They even take loans at a high rate of interest from the money-lenders. When loan and interest is not paid, they have to mortgage or sell land, ornaments and other kinds of property. Those who do not have landed property have to work as bonded labour on nominal wages. All these happen because one has to follow socio-religious norms of the society.
5. Natural causes: Natural calamities like flood, cyclone, drought, earthquake, and epidemic, etc. cause poverty in our country. Each year some parts of our country have to face the situation of flood, drought or cyclone. As a result of such natural causes, income of the people of the area is reduced to such an extent that they become unable to feed and cloth themselves.
6. Physical causes: Physical causes like disease, illness, physically handicapped, accident, suicide, death of earning member, mental illness, alcoholism and drug abduction cause poverty in our society. These are personal causes of poverty but they ultimately affect family and society from the viewpoint of poverty.
7. Illiteracy: Illiteracy is also responsible for poverty in our country. Due to illiteracy, people are ignorant and show extravagancy on the occasion of ceremonies, rituals, worship, witch doctor, etc. this leads ultimately to poverty.
