Poverty in India is a social phenomena and is perpetuated by extreme socio-economic inequalities. The basic economic factor responsible for the poverty remains highly skewed distribution of economic resources. The political factor such as the control of the state machinery by the ruling class and promoting its own interest has contributed to the prevalence of poverty. Socio-cultural factors such as rigid caste stratification and discrimination of the lower caste, belief in ‘Karma’ justifies and perpetuates poverty. Emphasis on materialism and pursuit of self-interest widen the rich and poor gap divide.
Thus, the impediments to growth with equity are located primarily in the institutional as well as politico-economic sphere. The monumental task of eradicating poverty needs a fundamental transformation of society itself which would involve redistribution of wealth and equitable sharing of the growing prosperity and changes in the power structure in flavors of the poor.