2025 · GS Paper 2 · Q16 · 15 marks

Inequality in the ownership pattern of resources is one of the major causes of poverty. Discuss in the context of 'paradox of poverty'.

In short

Unequal ownership of land, capital and skills is a major cause of poverty and explains the paradox of deprivation amid abundant food, minerals and growth. India's top 1% held about 40% of national wealth in 2023, while small and marginal farmers operate only about 47% of farm area.

Model answer

Ghissu Editorial · Verified 4 Oct 2026

Introduction
India's top 1% held about 40% of national wealth in 2023 (World Inequality Lab, 2024), though Article 39(b) and (c) direct the State to prevent such concentration. The 'paradox of poverty' is deprivation amid abundant land, minerals, food and growth.
How Unequal Ownership of Resources Causes Poverty
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Land

Small and marginal farmers hold about 86% of holdings but only about 47% of the area (Agriculture Census 2015-16), and the SECC 2011 found 56% of rural households landless.

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Gender and caste

Women are only 13.9% of operational holders, and Dalit households remain concentrated in casual labour.

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Capital and skills

Returns to capital outpace wages (Piketty's r > g), and the better-off buy schooling and health the poor cannot.

The Paradox of Poverty Amid Plenty
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Resource curse

Mineral-rich Jharkhand had about 29% of people multidimensionally poor in 2019-21 (NITI Aayog), with Adivasis displaced while mining rents flow elsewhere.

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Granaries and hunger

In PUCL (2001) grain rotted in FCI godowns amid starvation, and Sen showed the 1943 Bengal famine was an entitlement failure, not a food shortage.

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Other causes

Extreme poverty fell from 16.2% to 2.3% (World Bank, 2011-12 to 2022-23) despite concentration, so low-productivity jobs and health shocks matter too.

Way Forward
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Secure ownership

Digitise land records under SVAMITVA, enforce the Forest Rights Act 2006 and route royalties through District Mineral Foundations.

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Women's titles

Register houses and land in women's names.

Conclusion
Unequal ownership is a major, though not sole, cause of poverty and the root of its paradox; spreading ownership fulfils Article 39 and SDG 10.

This model answer is indicative and the model can make mistakes; please verify key facts independently.

Hand-drawn diagram: Asset Poverty Trap. Asset Poverty Trap. Flow: Few or no assets → No collateral → Moneylender debt → Distress sale → Wealth concentrates → (back to start)
Diagram: Asset Poverty Trap

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Question from the official UPSC Civil Services (Main) Examination 2025 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.

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