"Poverty in India has taken deep roots due to two major factors viz., low level of economic development and wide inequalities in income distribution and asset ownership." Added to these two, mention another third important factor that has perpetuated poverty in India and how?
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Third important factor that has perpetuated poverty in India is the high growth rate of population since 1951. Between 1951 and 2001, over 66 crore people were added to India's population. Fast growing population needs high growth rate of GNP to sustain the growing number of people and maintain them even at the minimum living standards. Increasing population reduces savings and capital formation. This limits the GNP growth rate. Consequently, slow rate of growth of GNP and high growth rate of population decreases the growth rate of per capita income.
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