Poverty in India
Poverty in India
Poverty as a Challenge
Poverty:-
Poverty refers to a situation in which a person is not able to get the minimum basic necessities of life e.g.
food, clothing, shelter etc. for his or her sustenance.
Poverty in India:- Every fifth Indian is poor. (Latest data of the World Bank).India is having the
largest number of poor people in the world. However, latest report suggests that India is no longer a
nation having largest number of poor people in the world. Nigeria overtook India as the country with
the largest number of extreme poor.
Two major types of Poverty :-
Urban Poverty :- They do not have physical assets and generally live in slums. Rickshaw-pullers,
Cobblers, Hawkers, rag pickers, daily wage labourers etc.
Rural poverty :- People do not have agricultural land.
Poverty as seen by social scientists :-
Poverty relates to the level of income and consumption. 🔹 Apart from this, poverty is looked through other
social indicators like illiteracy level, lack of general resistance due to malnutrition, lack of access to
healthcare, lack of job opportunities, lack access to safe drinking water, sanitation
Causes of Poverty :-
Policies of British Era- Low economic growth after Independence up to eighties. Population Growth
Limited success of Green Revolution. Unequal distribution of land and other resources. Socio-
cultural factors
Social exclusion- According to this concept, poverty is seen in terms of the poor having to live only
in a poor surrounding with poor people.
Vulnerability- Vulnerability to poverty is a measure, which describes the greater probability of
certain communities or individuals of becoming, or remaining, poor in the coming years
Poverty Line- A person is considered poor if his or her income or consumption level falls below a
given “minimum level” necessary to fulfil basic needs. This minimum level is referred to as Poverty
Line.
Determination of Poverty Line in India :-
On the Basis of Calories- In Rural Areas 2400 calories Per Person Per Day. In Urban Areas 2100
calories Per Person Per Day.
On the Basis of Income- In Rural Areas 816 Rs. per month. In Urban Areas 1000 Rs. per month.
Vulnerable Groups- Schedule Tribes (ST), Schedule Castes (SC), Agricultural Labourers and Casual
Labourers are the most vulnerable groups in India.
Inter- state Disparities
The proportion of poor people is not the same in every state. Bihar and Odisha are the poorest states in India.
Poverty decline in states-reasons-
Punjab and Haryana- Due to high agricultural growth rates.
Kerala- owing to more focus on human resource development.
West Bengal- Land reforms.
Andhra Pradesh and Tamil Nadu- Public distribution of food grains.
National Sample Survey Organisation (NSSO)
This organisation estimates the poverty line periodically (normally every five years) by conducting
sample surveys.
Global Poverty Scenario
According to the World Bank definition, a person living on less than 1.90 US Dollar per day is poor.
According to the most recent estimates, in 2013, 10.7 percent of the world’s population lived on less
than 1.9 US Dollar a day. (Source-worldbank.org) 🔹 The Sustainable Development Goals (SDG) of
the United Nations calls for ending the extreme poverty by 2030.
Anti – Poverty measures-
Promotion of Economic Growth
Targeted anti-poverty programme
Promotion of Economic Growth- There is a strong link between economic growth and poverty reduction.
Economic growth widens opportunities and provides the resources needed to invest in human development.
However, the poor may not be able to take advantage from the opportunities created by economic growth. 🔹
Growth also increases the government revenues and consequently, it could afford the programs for poverty
reduction. That is why these two strategies are also known as complementary to each other.
Targeted Anti-Poverty Programs- Mahatma Gandhi National Rural Employment Guarantee Act-2005.
Prime Minister Rozgar Yojana Swaranjayanti Gram Swarozar Yojana Pradhan Mantri Gramodaya Yojana
Antyodaya Anna Yojana
Mahatma Gandhi National Rural Guarantee Act- 2005-
Aim- Assuring employment to every rural household. Minimum 100 days of assured employment in a year.
One-third jobs are reserved for women. If an applicant is not provided employment within fifteen days
he/she is entitled to a daily unemployment allowance. Wage as per the Minimum Wages Act.
Prime Minister Rozgar Yojana (PMRY)-
Started - 1993.
Aim :- To create self-employment opportunities for educated unemployed youth in rural and small towns.
Help in setting up small business and industries.
The challenges ahead and new approaches in poverty reduction-
The Sustainable Development Goals (SDG) of the United Nations calls for ending the extreme poverty by
2030. In this context, reduction of poverty requires innovative approaches in our country. Further, with
development, it is expected that the definition of poverty would change. Though, we have been able to
maintain high economic growth in the last 20 years, but this has not resulted in creating large number of
employment. Further, we need to make anti-poverty schemes more effective. Following new approaches are
worth mentioning here:
Jan Dhan Yojana, Aadhar and Mobile (JAM)-This trinity could play an important role in widening the
reach of the government to the vulnerable sections. This would prevent the leakages in the distribution in the
long run.
Universal Basic Income- It is considered as an alternative to various state subsidies for poverty alleviation
Economic Survey, 2017). Though it is still at discussion level, the Universal Basic Income envisages paying
the beneficiaries directly into their bank accounts to help reduce leakage.