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causes of poverty in india

Despite the country's meteoric GDP growth rate (about 9%), poverty in India is still pervasive; especially in rural areas where 70% of India’s 1.2 billion population live.

It is one of the fastest growing economies in the world and yet its riches are hardly redistributed across the population.

It spends only 1% of its GDP on health, which is half that of China, who is already planning on increasing that by… a substantial amount (ok, 3 to 4% if you must know).

While we’re comparing public expenditure, contrast this with Russia and Brazil, whose spending on health is around 3.5% of their respective GDPs.This is all due to our curropt political leader

progress indicator
  • Nov 9 2013: It confused me a lot too.I think there are lots of people are inspired by India budda ideas and long history of YoYa.I learned some of India people are awesome with very advanced ideas in mind.But why India is still in such poverty?If I have chance,India is one of countries I would like to travel,I wish India people can live a better life there.
  • Nov 8 2013: GDP is bullshit and nothing else.
  • Nov 8 2013: Talent,Honesty,Innovation and Entrepreneurial spirit is not celebrated in India.Indian love MARD Type of people who do all the wrong type of things to get success.One who cannot participate in Corruption is a NAMARD in India . This is the Indian philosphy.Indians are braggarts who brag about rotten ,phoney,pakhandi culture.Successfull people are MARDS and Unsuccessful People are NAMARDS. Everything is on sale in India Love,marriage,Honesty.
  • Nov 4 2013: Current poverty isn't about your current GDP growth, its about your past GDP growth for the last 5000 years combined. The grand total is where you stand today; due to how population sizes and economies have skyrocketed in the past 200-300 years or so, the later developments tend to overshadow the old
    India is poor because it was screwed over by colonial powers, and has had a hard time recovering. Its playing catch up with the western world (and those parts of the east and others which have caught up to it) instead of progressing alongside it.

    A better question is "how can it catch up faster?", though I'm afraid that the answer to that one requires a better understanding of India's culture and economy than I'm in possession of.
    I doubt corrupt politicians are the only problem. We have those the world over, even in the rich nations.
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    Nov 4 2013: causes of poverty? India is poor not in spite of high GDP but because of high GDP. The policies that resulted in the increase of GDP are the very policies that increase the distance between the rich and the poor. No doubt the standard of living for many has become better but we have never asked "at what cost to others living now and yet to be born". We are destroying social and moral fabric of the country to increase GDP when in fact social and moral fabric are important resources that can alleviate poverty.
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      Nov 4 2013: these words are shallow without explanation. tell us what policies do you mean.
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        Nov 5 2013: One example would be policies that make small farms very difficult to exist. Instead of helping raise productivity of small farms our policies are just promoting intensive farming or factory farming. Small farms are important to fight malnutrition which is another major problem in India. Better malnutrition also mean healthy mind for children who will have many challenges to fight their way through poverty.
  • Nov 4 2013: According to me, there are several factors affecting poverty in India such as follows
    1) Lack of Education (Includes Women Education)
    2) Corruption (Proper Resources are not being utilized)
    3) Lack of political will to solve all problems
    4) We need slab wise income tax system. High taxes on rich people - low taxes for poor people.
    5) stable Income distribution
    And Many more micro Issues.
  • Nov 1 2013: Many people have mentioned the government, population, and lack of resources. Let me suggest there is another thing that must be fixed. That is the caste culture. It holds back talent, both from the lower caste but also women. Until this is fixed, India will not reach its full potential.

    Another conversation had the implication that a child of a farmer will be a farmer. This is ok but they should not be limited to this. This results in limiting people and innovation.
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    Oct 30 2013: Hoarding of Money by selfish people, irrational Government Programmes without proper structure and supervision. One more thing I have noticed the cause is Ignorance and lack of interest by people in involvement to improve the Framework of Govt programmes and politics.
  • Oct 30 2013: Too many people for the rsources.
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    Oct 29 2013: I think that India has great potential. However, that potential will never be realized until the political issues are resolved. There are six recognized national parties, and more than 40 regional parties. The naked truth is that is to many palms to grease.

    Say I own the XYZ Corp the worlds largest maker of widgets. I look at India and say the workforce is there .... the education is there ... the cost of doing business is right ... who do I see that will grant me a long term deal. With 6 national parties and 40 regional parties I would have to court all of them. I go to China and see one guy. Done deal.

    Politically I see India as unstable and doing business there would be risky.

    Do you see only the political leader as corrupt as you say above? Or politicians in general in India.
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    Oct 29 2013: i would not consider 9% growth as a miracle. first, even if the measurement is accurate, it means that the doubling time of the income of a person is approximately 8 years. considering that the income is now at 1/20 of the western world, you need to double more than 4 times before you reach it. that is 32 years. recently, india's growth is down to about 4%, which makes that number 70 years.

    but alas these numbers are highly fabricated, and all sort of government waste is added to it. in india, the participation of the government in the economy is growing, which forecasts a halt in private growth, and eventually a halt in combined growth as well.

    that happens if you add the producers' and the thieves' income together, and call it a measurement of prosperity.
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    Oct 29 2013: That would be government (especially fraud) prevents what would happen otherwise.