Following are the important causes of poverty in India:
(i) Low Level of Economic Development : The Indian economy is highly underdeveloped due to relative backwardness of agriculture and industrial sectors.
(ii) Unemployment and Disguised Unemployment : There is a severe problem of unemployment in India. We also find disguised unemployment in agriculture.
(iii) Rapid Growth of Population : Rapid growth of population, particularly among the poor, is responsible for the problem of poverty in the country. It is obvious that when total national income is thinly spread over a large number of people, the per capita income is bound to be low.