ICSE Class 9 Answered

Inequality in the distribution of income and wealth: During the plan periods, the national income of India has been increasing, but it has not been distributed properly among the different sections of people. Majority of the income of the economy has been enjoyed by the rich. These inequalities in the distribution of wealth and income have worsened the problem of poverty in India.

Underdevelopment of an economy: Physical and natural resources are underutilised because of lack of technology, capital and entrepreneurial ability. Therefore, the productive capacity and gross domestic product of the economy are low. Primitive technology of production occurs in the agricultural sector. They lack irrigation facilities, fertilisers and high-yielding variety of seeds. This backwardness in agriculture has given rise to rural poverty.

Indebtedness: Poor people take loans from the rich section of society to meet their basic needs. In return, they pay a high rate of interest for the amount borrowed from moneylenders. Moneylenders exploit them, and they thus live below the poverty line from one generation to another.

Price inflation: Upward trends in the consumer price index during the plan periods led to a fall in the real income of fixed and low-income earners. Inflation decreases the purchasing power, and hence, there is a low standard of living and a high incidence of poverty. . High rate of population growth: Because of an increase in population, the dependency burden has increased. Hence, the provision for their minimum needs becomes a crucial problem. This high growth rate of population also signifies lower availability of health facilities and other amenities and therefore a lower standard of living.