Causes for Rural Poverty: 

1. Unequal distribution of Land: The distribution of land is highly skewed in rural areas. Therefore, majority of rural people work as hired labour to support their families.

2. Lack of Non – Farm Employment: Non – farm employment opportunities do not match the increasing labour force. The excess supply of labour in rural areas reduces the wages and increases the incidence of poverty.

3. Lack of public sector Investment: The root cause of rural poverty in our country is lack of public sector investment on human resource development.

4. Inflation: Steady increase in prices affects the purchasing power of the rural poor leading to rural poverty.

5. Low productivity: Low productivity of rural labour and farm activities is a cause as well as the effect of poverty.

6. Unequal Benefit of Growth: Major gains of economic development are enjoyed by the urban rich people leading to concentration of wealth. Due to defective economic structure and policies, gains of growth are not reaching the poor and the contributions of poor people are not accounted properly.

7. Low Rate of Economic Growth: The rate of growth of India is always below the target and it has benefited the rich. The poor are always denied of the benefits of the achieved growth and development of the country.

8. More Emphasis on Large Industries: Huge investment in large industries catering to the needs of middle and upper classes in urban areas are made in India. Such industries are capitalintensive and do not generate more employment opportunities. Therefore, poor are not in a position to get employed and to come out from the poverty in villages.

9. Social evils: Social evils prevalent in the society like custom, beliefs, etc., increase unproductive expenditure.