Causes of Poverty – NCERT Economics Class 9 Chapter 3 Notes & PDF

Topic covered: Causes of Poverty and MCQs Questions: Poverty as a Challenge (All single detail notes are exam-oriented).

We have discussed in-depth and exam-oriented pointers that can be asked in the board exam of class 9th about the “Causes of Poverty“ from the NCERT Economics notes for class 9th chapter 3 Poverty as a Challenge.

Download the NCERT Economics for Class 9th Chapter 3 Poverty as a Challenge Notes PDF

Chapter 3: Poverty as a Challenge in Class 9 Economics deals with one of the most pressing social issues in India. The chapter explains how poverty is measured, its causes, and the everyday struggles faced by poor households. Many students often find the terms like “social exclusion” or “vulnerability” tricky, so these notes break them down with examples that are easy to follow. You’ll also get a clear picture of government schemes and policies aimed at reducing poverty. Download the NCERT Economics for Class 9th Chapter 3 Poverty as a Challenge Notes PDF to revise key points quickly and confidently.

Causes of Poverty

1. Historical Causes:

• Poverty in India has historical roots.
• British colonial rule led to:
  a. Ruin of traditional handicrafts.
  b. Discouragement of industries (e.g., textiles).
• Result – Low level of economic development at independence.

2. Low Growth & Limited Jobs:

• Economic growth remained low till the 1980s.
• Consequences:
  a. Fewer job opportunities.
  b. Low income growth.
• High population growth worsened the situation.

3. Agriculture & Green Revolution:

• Spread of irrigation and Green Revolution – created agriculture jobs.
• Impact was limited to certain regions only.

4. Urban Poverty:

• Public and private industries created some jobs, but not enough to absorb job seekers.
• Many unemployed worked as rickshaw pullers, vendors, construction workers, domestic servants.
• With small, irregular incomes – forced to live in slums on city outskirts.
• Thus, poverty spread from rural to urban areas.

5. Income Inequality:

• A major feature of poverty in India.
• Root cause – Unequal distribution of land and other resources.

6. Weak Policy Implementation:

• Land reforms aimed at redistribution of assets in rural areas.
• Most states did not implement reforms effectively.
• If implemented well, millions of rural poor could have benefitted.

7. Socio-Cultural & Economic Factors:

• People spend heavily on social obligations and religious ceremonies, even when poor.
• Small farmers need money for inputs (seeds, fertilizers, pesticides).
• Poor have little to no savings – borrow at high interest rates.

8. Indebtedness:

• Poor often unable to repay loans.
• Result – cycle of poverty and indebtedness.
• Indebtedness is both a cause and effect of poverty.

9. Exam Tip:

• Causes of poverty can be classified into: historical, economic (low growth, job scarcity), agricultural limits, urbanization, income inequality, weak policy, socio-cultural practices, and indebtedness.
• Remember – Indebtedness = both cause and effect.

Next & Previous Topics of NCERT/CBSE Economics Class 9 Chapter 3: Poverty as a Challenge

MCQs on NCERT Economics Class 9 Chapter 3 Topic – Causes of Poverty

Here are the top exam-oriented MCQ-type questions on “Causes of Poverty” that you should prepare for your CBSE or state board exams:

Question 1. Which historical factor contributed to widespread poverty in India?

a) Industrial Revolution in Europe
b) British colonial administration
c) Green Revolution
d) Urbanisation

Answer: b) British colonial administration

Question 2. What was the impact of British colonial policies on Indian industries?

a) Boosted textile industries
b) Developed modern handicrafts
c) Ruined traditional handicrafts and discouraged industries
d) Promoted urban industries

Answer: c) Ruined traditional handicrafts and discouraged industries

Question 3. Until which decade did the low rate of economic growth persist in India?

a) 1960s
b) 1970s
c) 1980s
d) 1990s

Answer: c) 1980s

Question 4. What was the effect of low growth rate on employment?

a) More job opportunities
b) Fewer job opportunities
c) Higher salaries
d) Better living conditions

Answer: b) Fewer job opportunities

Question 5. What accompanied the low growth rate of income in India?

a) Industrial expansion
b) High growth of population
c) Effective land reforms
d) Decline in agriculture

Answer: b) High growth of population

Question 6. Which agricultural development created some job opportunities?

a) Industrial Revolution
b) Green Revolution
c) IT Revolution
d) Urbanisation

Answer: b) Green Revolution

Question 7. Why was the impact of the Green Revolution limited?

a) It failed completely
b) It was confined to some parts of India
c) It created no jobs
d) It destroyed agriculture

Answer: b) It was confined to some parts of India

Question 8. Which sectors provided jobs but not enough to absorb all job seekers?

a) Only private sector
b) Only agriculture sector
c) Both public and private sectors
d) Only informal sector

Answer: c)Both public and private sectors

Question 9. Which types of work did unemployed people take up in urban areas?

a) IT jobs
b) Government jobs
c) Rickshaw pullers, vendors, construction workers, domestic servants
d) Teaching and banking jobs

Answer: c)Rickshaw pullers, vendors, construction workers, domestic servants

Question 10. Where did these urban poor people usually live?

a) Government housing colonies
b) Villages
c) Slums on the outskirts of cities
d) Industrial townships

Answer: c)Slums on the outskirts of cities

Question 11. What major feature of poverty in India highlights inequality?

a) High growth rate of population
b) Unequal distribution of land and resources
c) Spread of Green Revolution
d) Migration to cities

Answer: b) Unequal distribution of land and resources

Question 12. Which policy initiative aimed at redistribution of assets in rural areas?

a) Industrialisation policy
b) Land reforms
c) Green Revolution
d) Liberalisation

Answer: b) Land reforms

Question 13. Why did land reforms fail to solve poverty?

a) Lack of awareness among farmers
b) Poor implementation by state governments
c) Opposition from urban poor
d) Lack of funds

Answer: b) Poor implementation by state governments

Question 14. Which socio-cultural practice increases poverty in India?

a) Green Revolution
b) Spending on social obligations and religious ceremonies
c) Migration to cities
d) Use of modern technology

Answer: b) Spending on social obligations and religious ceremonies

Question 15. Why do small farmers borrow money at high risk?

a) To buy agricultural inputs like seeds, fertilizers, pesticides
b) To spend on education
c) To migrate abroad
d) To invest in industries

Answer: a) To buy agricultural inputs like seeds, fertilizers, pesticides

Question 16. What is the main reason poor people become victims of indebtedness?

a) Excess savings
b) High income growth
c) Inability to repay loans due to poverty
d) Lack of demand for loans

Answer: c) Inability to repay loans due to poverty

Question 17. Indebtedness in India is considered as:

a) Only a cause of poverty
b) Only an effect of poverty
c) Both a cause and an effect of poverty
d) Neither cause nor effect

Answer: c) Both a cause and an effect of poverty