The structural changes taking place in the economy, which make many people unemployable or hamper the location of the right jobs are the main causes of urban poverty in India, according to the Planning Commission.
Structural changes in the economy also include socially constructed constraints to opportunities for low-income groups, the commission said in a Plan document
The influx of a large number of workers to cities without commensurate job opportunities and availability of housing and basic amenities results in an increase in the number of poor or unemployed people in urban areas, according to the Plan document.
Besides the high cost of living, including cost of healthcare and medical facilities, housing, transport and education, lack of provision for housing low-income categories and allocation of land for informal sector activities add to urban poverty.
This calls for adequate regulation to protect the economic interest of the poor and involvement of poor in urban planning and developmental process.
The high cost of healthcare is one of the main causes of urban poverty in the country. Hospitals in urban areas mainly cater to the rich and this disadvantages the urban poor in getting proper healthcare facilities, the document noted.