One historical reason responsible for the low level of economic development, i.e., poverty, was the British colonial administration. It was responsible for the ruin of the traditional handicrafts and textile industries. It led to a fall in employment and thereby income level.
The situation was further aggravated by the high growth rate of population. As a result, the growth . rate of per capita income was very low.
Another major cause of poverty has been the huge inequalities in income, which are attributed to unequal distribution of land and other resources. Major policy initiatives like land reforms which aimed at redistribution of assets in rural areas were not properly implemented.