The reasons for the emergence of poverty in India are as follows:

• Irregular rainfall and inadequate irrigation facilities are responsible for the decline in income from agriculture.

• Seasonal nature of employment and absence of alternative employment in the rural area.

• The illiterate people are engaged in agriculture for ages. They do not possess required knowledge, skills or training for the high-paying professions. Sway of customs, traditions and (blind) religious beliefs force people to indulge in huge unproductive expenditure. They borrow money from the village moneylenders at exorbitant rate of interest by mortgaging their land. As a result, more than 90% villagers are caught in the debt trap.

• The illiterate villages are exploited by the landlords and moneylenders.

• The illiterate villagers are unable to derive their benefits as they do not possess information of the welfare schemes of the government.

• The British rulers encouraged cultivation of cash

• The British rulers imposed exorbitant land revenue and made it compulsory to make its payment in cash. They did not grant relief even in time of natural calamities. The farmers had no other alternative but to approach money-lenders to raise funds for the payment of the land revenue. The exploitative British rule was mainly responsible for the rural poverty crops. This reduced the land under cultivation of the food- grains. As a result, production of food grains declined. This triggered scarcity of food grains and increase in the prices.

• Development of agriculture was neglected during the era of planning. Benefits of development did not reach the poor and they continued to live in poverty.

• Economic reforms introduced in 1991 have adverse effect on agriculture, small scale and cottage industries. The poor in the rural areas migrated to the urban areas in search of employment. This resulted in the collapse of agriculture as an economic activity.

• Malnutrition and starvation are common among the poor. They suffered form many ailments. Expensive medical treatment cause further hardship.

• Technological change have led to the closure of many traditional crafts and industries. The workers have been rendered jobless.

• Progress in medical science has increased the expectancy of life. Population has increased due to low death rate.

• The supply of labour has increased manifold. However, employment opportunities are insufficient. This led to unemployment and unemployment has further triggered poverty.

• The purchasing power of the people has declined. As, a result, the standard of living deteriorated. This is a reflection on the state of poverty in India.