Tamilnadu - Poverty - Causes of Poverty in India

Causes of Poverty in India

A disproportionally large share of poor are lower caste Hindus. According to S. M. Michael, Dalits constitute the bulk of poor and unemployed.

Many see Hinduism and its subsidiary called caste sstem as a system of exploitation of pr low-ranking groups by more prosperous high-ranking groups. In many parts of India, land is largely held by high-ranking property owners of the dminant castes that economically exploit low-ranking landless labourers and poor artisans, all the while degrading them with ritual emphases on their so-called gogiven inferior status. Acording to William A. Haviland, castm is widespread in rural areas, and continues to segregte Dalits . Others, however, have noted the steady rise and empowerment of the Dalits throug social reforms and the implementation of reservations in employment and benefits.

British eraThe reign of the Islamic dynasty of the Great Mughals had been an era of unprecedented prosperity in India. The Mughal era ended about 1800. Jawaharlal Nehru claimed "A significant fact which stands out is that those parts of India which have been longest under British rule athe poorest today." The Indian econmy was purposely and severely deindustrialized through colonial privatizations, regulations, tariffs on manufactured or refined Indian goods, tax and direct seizurial production against Britain's 9.5%, but by 1900 Iia's share was down to 1.7% against Britain's 18.5%. (The change in industrial production per capita is even more extremdue to Indian population grow. This is because Europe - particularly Britain - industrialized before the rest of the world.

This view claims that British policies in India exacerbated weather conditions to lead to mass famines which, when taken together, were forcibly disabled[citation needed], land was converted from food crops for local consumption to ern of conmption changed as the new upper class no longr kept harems and palaces, nor did they wear fine muslins and damascened swords. This caused some painful readjustments in the traditional handicraft sector. It seemdia: government itsecarried out productive investment in railways and irrigation and as a result there was a growth in both agricultural and industrial output."

Indian lars In other words, the average income in India was not much different from South Korea in 1947, but South Korea becamdeveloped country by 2000s. At the same time, India was left as one of the world's poorest countries.round 3.5% from 1950s to 1980s, while pe, South Korea by 10% and in Taiwan by 12%.The term was coine elaborate licenses, regulations and the accompanying red tape that were required to set up and run business in India between 1947 and 1990. The License Raj was a result of India's decision to have a planned economy, where all aspects of the economy are controlled by the state and licenses were given to a select few. Corruption flourished under this system.

The labyrinthine bureaucracy often led to absurd restrictions - up to 80 agencies had to be satisfied before a firm could be granted a licence to produce and the state would decide what was produced, how much, at what price and what sources of capital were used.

India had started out in the 1950s with:

  1. * high growth rates
  2. * openness to trade and investment
  3. * a promotional state
  4. * social expenditure awareness
  5. * macro stability

But we ended the 1980s with:

  1. * low growth rates (Hindu rate of growth)
  2. * closure to trade and investment
  3. * a license-obsessed, restrictive state (License Raj)
  4. * inability to sustain social expenditures
  5. * macro instability, indeed crisis.

Poverty has decreased significantly since reforms were started in the 1980s.

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