Low level of economic development under the British colonial administration.

Widespread poverty in India is caused due to multiple reasons. Such as-1.Low level of economic development under the British colonial rule The policies of the the colonial government destroyed traditional handicrafts and discouraged development of industries like textiles. This caused a low level of growth rate of incomes which was accompanied by population growth perpetuating a cycle of poverty.2.Income inequalities This was primarily caued due to unequal distribution of land and other resources.3. Socio-Cultural and Economic factors- (a) In order to fulfill social obligations, large amounts of money are spent on observing religious ceremonies, weddings etc. (b) As farmers lack their own savings, to purchase agricultural inputs they tend to borrow money. Unable to return the borrowed money they find themselves stuck in indebtedness. Leading them into a viscous cycle of poverty.