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SAI INTERNATIONAL SCHOOL
SESSION 2020-21
CLASS-IX

ECONOMICS- CHAPTER-3 POVERTY AS A CHALLENGE

LESSON NOTES
SUB TOPIC-6
Causes of Poverty

There are various reasons for widespread poverty in India.

 Under British control, India had a low level of economic development. New
policies of the colonial government ruined traditional handicrafts and
discouraged development of industries. like textiles.
 Low rate of growth and an increase in population combined to make the
growth rate of per capita income very low. With the spread of irrigation and
the Green revolution, many job opportunities were created in the agriculture
sector. However, these were not enough to absorb all the job seekers.
 Another feature of high poverty rates has been the huge income inequalities.
 One of the major reasons for this is the unequal distribution of land and other
resources.
 In India, lack of land resources has been one of the major causes of poverty
in India, but proper implementation of policy could have improved the lives of
millions of rural poor.
 Small farmers needed money to buy agricultural inputs like seeds, fertilizer,
pesticides etc. So, they used to borrow money and were unable to repay the
loan because of poverty.