essay about india poor

Cultural India

Poverty in india: causes, effects and solutions.

“Poverty is humiliation, the sense of being dependent on them, and of being forced to accept rudeness, insults, and indifference when we seek help.” —Latvia 1998

In the simplest term, poverty may be defined as a social condition where individuals do not have financial means to meet the most basic standards of life that is acceptable by the society. Individuals experiencing poverty do not have the means to pay for basic needs of daily life like food, clothes and shelter.

Poverty also staves people off from accessing much needed social tools of well-being like education and health requirements. The direct consequences stemming from this problem are hunger, malnutrition and susceptibility to diseases which have been identified as major problems across the world. It impacts individuals in a socio-psychological way with them not being able to afford simple recreational activities and getting progressively marginalized in the society.

The term poverty is interconnected with the notion of the poverty line/ threshold that may be defined as the minimum figure of income that is required in a particular country for maintaining the socially acceptable quality of life in terms of nutritional, clothing and sheltering needs. The World Bank has updated its international poverty line figures to 1.90 USD (Rs. 123.5) per day on October 2015 (based on prices of commodities in year 2011-2012), from 1.5 USD(Rs. 81) as a response to the changes in the cost of living across the world as per current economy. The organization estimates that – “Just over 900 million people globally lived under this line in 2012 (based on the latest available data), and we project that in 2015, just over 700 million are living in extreme poverty.”

Poverty is a worldwide cause of concern even in economically stable countries like the USA. Current statistics state that over half the populations in the world, about 3 billion people, are forced to live on less than 2.5 dollars per day. In India, as per 2014 government reports, monthly per capita consumption expenditure is Rs. 972 per person in rural areas and Rs. 1407 per person in urban areas. This data is currently being accepted as the poverty threshold of the country. As of 2015, 21.9% of the total population lives below the national poverty threshold, as per the data of Asian Development Bank, that’s a whopping 269.7 million individuals not having enough money.

Causes of Poverty in India

Factors contributing to the persistent problem of poverty in the country are many and they need to be identified in order to be addressed properly. They can be categorized under the following heads.

1. Demographic – the main factor that contributes to poverty-ridden state of the country from a demographical point of view is the problem of over population. The growth of population in the country has so far exceeded the growth in economy and the gross result is that the poverty figures have remained more or less consistent. In rural areas, size of the families is bigger and that translates into lowering the per capita income values and ultimately lowering of standard of living. Population growth spurt also leads to generation of unemployment and that means diluting out of wages for jobs further lowering income.

2. Economic –there are a host of economic reasons behind persistence of the poverty problems which are outlined hereunder:-

a. Poor Agricultural Infrastructure –Agriculture is the backbone of Indian economy. But outdated farming practices, lack of proper irrigation infrastructure and even lack of formal knowledge of crop handling has affected the productivity in this sector tremendously. As a consequence there is redundancy and sometimes complete lack of work leading to decreased wages that is insufficient for meeting daily needs of a labourer’s family plunging them into poverty.

b. Unequal distribution of assets – with the economy changing directions rapidly, the earning structure evolves differently in different economic income groups. Upper and middle income groups see a faster increase in earnings than lower income groups. Also assets like land, cattle as well as realty are distributed disproportionately among the population with certain people owning majority shares than other sectors of the society and their profits from these assets are also unequally distributed. In India it is said that 80% wealth in the country is controlled by just 20% of the population.

c. Unemployment – another major economic factor that is causative of poverty in the country is the rising unemployment rate. Unemployment rates is high in India and according to a 2015 survey data, at the all-India level, 77% of families do not have a regular source of income.

d. Inflation and Price hike – the term Inflation may be defined as an increase in prices of commodities coinciding with the fall in the purchasing value of money. As a direct consequence of inflation, effective price of food, clothing items as well as real estate rises. The salaries and wages do not rise as much in keeping up with the inflated prices of commodities leading to effective decrease of the per capita income.

e. Faulty economic liberalization – the LPG (Liberalization-Privatization-Globalization) attempts initiated by the Indian Government in 1991 were directed towards making the economy more suited to international market-trends to invite foreign investments. Successful to certain extent in reviving the economy, the economic reforms had detrimental effects on increasing the wealth distribution scenario. Rich became richer, while the poor remained poor.

3. Social – The various social issues plaguing the country that contributes towards poverty are:-

a. Education and illiteracy – Education, rather its lack thereof and poverty form a vicious cycle that plagues the nation. Not having enough resources to feed their children, the poor consider education to be frivolous, preferring children to start contributing to the family’s income rather than draining them. On the other hand, lack of education and illiteracy prevent individuals from getting better paying jobs and they get stuck at jobs offering minimum wages. Improvement of quality of life gets hindered and the cycle once again comes into action.

b. Outdated Social Customs – Social customs like the caste system cause segregation and marginalization of certain sections of the society. Certain castes are considered untouchables still and are not employed by upper caste, leaving very specific and low paying jobs that they can live off. Economist K. V. Verghese put forth the problem in a very lucid language, “Caste system acted as a spring­board for class exploitation with the result that the counterpart of the poverty of the many is the opulence of the few. The second is the cause of the first.”

c. Lack of skilled labour – lack of adequate vocational training makes the huge labour force available in India largely unskilled, which is unsuitable for offering maximum economic value. Lack of education, much less higher education, is also a contributing factor towards this.

d. Gender inequality –the weak status attached with women, deep-rooted social marginalization and long embedded perceptions of domesticity renders about 50% of the country’s population unable to work. As a result the women of the family add to the number of dependents that need to be fed instead of being able to contribute considerably in the family income which might assuage the poverty situation of the family.

e. Corruption – despite considerable efforts from the government in the forms of various schemes to mollify the poverty situation, allegedly only 30-35% actually reaches the beneficiaries due to wide-spread practices of corruption in the country. Wealthy people with privileged connection are able to acquire more wealth simply by bribing government officials to maximize their profits from such schemes while the poor remain in a state of neglect for not being able to assert such connections.

4. Individual – individual lack of efforts also contribute towards generating poverty. Some people are unwilling to work hard or even not willing to work altogether, leaving their families in the darkness of poverty. Personal demons like drinking and gambling also leads to draining of the family income inciting poverty.

5. Political – in India, socio-economic reform strategies has been largely directed by political interest and are implemented to serve a choice section of the society that is potentially a deciding factor in the elections. As a result, the issue is not addressed in its entirety leaving much scope of improvements.

6. Climatic – maximum portion of India experiences a tropical climate throughout the year that is not conducive to hard manual labour leading to lowering of productivity and the wages suffer consequently.

Effects of Poverty

The resounding effect of poverty echoes through various layers of an India citizen’s life. If we try to have a systematic look at them, we should proceed under the three following heads:-

1. Effect on Health – one of the most devastating effects that poverty has is on the overall health of the nation. The most prominent health issue stemming from poverty is malnutrition. The problem of malnutrition is widespread in all age-groups of the country but children are most adversely affected by this. Limited income in larger families leads to lack of access to sufficient nutritious food for their children. These children over time suffer from severe health problems like low body weight, mental, physical disabilities and a general poor state of immunity making them susceptible to diseases. Children from poor backgrounds are twice as susceptible to suffer from anemia, nutrient deficiencies, impaired vision, and even cardiac problems. Malnutrition is a gross contributor of infant mortality in the country and 38 out of every 1,000 babies born in India die before their first birthday. Malnutrition among adult also leads to poor health in adults that leaches their capacity for manual labour leading to a decrease in income due to weakness and diseases. Poverty also causes definite decline in the sanitary practices among poor who cannot afford proper bathrooms and disinfectants. As a result susceptibility to waterborne diseases peak among the poor. Lack of access to as well as means to procure appropriate treatment also affects overall mortality of the population which is lower in poor countries than developed nations like the USA.

2. Effects on Society – poverty exerts some gravely concerning effects over the overall societal health as well. These may be discussed along the following lines:-

a. Violence and crime rate – incidence of violence and crime have been found to be geographically coincident. In a backdrop of unemployment and marginalization, the poor resort to criminal activities to earn money. Coupled with lack of education and properly formed moral conscience, a poverty ridden society is more susceptible to violence by its people against its own people from a sense of deep-seated discontent and rage.

b. Homelessness – apart from a definite drop in the esthetic representation of the country, homelessness affects child health, women safety and overall increase in criminal tendencies.

c. Stress – lack of money is a major cause of stress among the middle-class and the poor and leads to decline in productivity of individuals.

d. Child labour – one of the hallmarks of a poverty-ridden society is the widespread practices of exploitation and the worst of it comes in the form of child labour. Large families fail to meet the monetary needs of the members and children as young as 5 years are made to start earning in order to contribute to the family income.

e. Terrorism – proclivity of youth towards terrorism stems from a combination of extreme poverty and lack of education making them susceptible to brainwashing. Terrorist organizations offer poverty-ridden families money in exchange for a member’s participation in their activities which induces a sense of accomplishment among the youth.

3. Effect on Economy –poverty is a direct index indicating success of the economy of the country. The number of people living under the poverty threshold indicates whether the economy is powerful enough to generate adequate jobs and amenities for its people. Schemes providing subsidies for the poor of the country again impose a drain on the economy.

The measures that should be taken to fight the demon of poverty in India are outlined below:-

1. Growth of population at the current rate should be checked by implementation of policies and awareness promoting birth control.

2. All efforts should be made to increase the employment opportunities in the country, either by inviting more foreign investments or by encouraging self-employment schemes.

3. Measures should be taken to bridge the immense gap that remains in distribution in wealth among different levels of the society.

4. Certain Indian states are more poverty stricken than others like Odhisha and the North East states. Government should seek to encourage investment in these states by offering special concessions on taxes.

5. Primary needs of people for attaining a satisfactory quality of life like food items, clean drinking water should be available more readily. Improvement of the Subsidy rates on commodities and Public Distribution system should be made. Free high school education and an increased number of functioning health centers should be provided by the government.

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Essay on Poverty in India

Students are often asked to write an essay on Poverty in India in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

Let’s take a look…

100 Words Essay on Poverty in India

Introduction.

Poverty is a significant issue in India, affecting millions of lives. Despite India’s economic growth, poverty remains prevalent, especially in rural areas.

Many factors contribute to poverty in India. Lack of quality education, unemployment, overpopulation, and inadequate public health are some of these factors.

Poverty affects individuals and communities. It leads to malnutrition, illiteracy, and low life expectancy. Children are the most affected as they lack access to basic needs.

Addressing poverty requires concerted efforts. Improving education, creating job opportunities, and enhancing public health services could help alleviate poverty.

250 Words Essay on Poverty in India

India, despite its substantial economic growth, is home to a significant portion of the global poor. Poverty in India is a multifaceted issue, shaped by socio-economic, political, and cultural factors.

Underlying Causes

The root causes of poverty in India are manifold. The country’s historical caste system has perpetuated socio-economic disparity, while gender bias has further limited opportunities for women. Additionally, rapid population growth has strained resources, leading to inadequate access to basic amenities such as education, healthcare, and employment.

The impacts of poverty are profound. It perpetuates a cycle of illiteracy and low-skilled labor, trapping generations in a poverty loop. Furthermore, it exacerbates health issues and malnutrition, particularly among children, undermining India’s future human capital.

Government Initiatives

The Indian government has implemented multiple poverty alleviation programs, including the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and the Pradhan Mantri Jan Dhan Yojana. However, their effectiveness is limited by issues such as corruption, lack of awareness, and inadequate implementation.

Addressing poverty in India requires a holistic approach that addresses its root causes. This includes promoting inclusive growth, gender equality, and sustainable development. Equally important is the need for transparent and efficient implementation of poverty alleviation programs. Only then can India truly leverage its demographic dividend and achieve its development goals.

500 Words Essay on Poverty in India

Poverty, a socio-economic issue, is a multi-dimensional problem that affects a large portion of the Indian population. Despite the country’s significant economic growth, poverty remains a persistent challenge, with millions of people living below the poverty line.

The Magnitude of Poverty in India

India, home to more than a billion people, is the world’s largest democracy. However, it also houses a significant portion of the world’s poor. According to the World Bank, in 2019, 21.9% of the Indian population lived below the national poverty line. The issue is more pronounced in rural areas where agriculture, the primary source of income, is often affected by unpredictable weather patterns and poor infrastructure.

The Causes of Poverty

Poverty in India can be attributed to a myriad of interconnected factors. First, the country’s rapid population growth has put immense pressure on its resources, exacerbating poverty. Second, the lack of access to quality education and healthcare, particularly in rural areas, has perpetuated a cycle of poverty. Third, social inequality and discrimination based on caste, religion, and gender have further entrenched poverty. Lastly, corruption and inefficient public distribution systems have hindered poverty alleviation efforts.

Impact of Poverty

The impacts of poverty are far-reaching and multi-faceted. It affects physical health due to malnutrition and inadequate healthcare. It restricts access to quality education, thus limiting opportunities for upward mobility. Poverty also exacerbates social tensions and can lead to a rise in crime rates. Moreover, it hinders the country’s overall economic progress, as a significant portion of the population remains unable to contribute effectively to the economy.

Poverty Alleviation Measures

Poverty in India is a complex issue that requires a comprehensive and multi-pronged approach to address. While significant strides have been made, much work remains to be done. Efforts must be made to improve access to quality education and healthcare, promote social equality, and ensure the effective implementation of poverty alleviation programs. Only then can India hope to break the cycle of poverty and ensure a prosperous future for all its citizens.

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The rich and poor gap

My country’s growing wealth hasn’t trickled down. Just ask Amina, who lives in a slum in the shadow of one of India’s glitziest shopping malls. I took her there to see what she made of it.

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Twins Gagan and Muskan Juneja don't look alike except in one way: They are both overweight. They are part of a disturbing trend in a nation that’s notorious for malnutrition. India is getting fatter by the day.

Seeing the new India through the eyes of an invisible woman

By Moni Basu , CNN Video by Nick Scott and Jordan Mendys, CNN

Kolkata, India (CNN) — Not far from the place I once called home stands one of India's glitziest shopping malls. By day, the massive building dwarfs every structure around it. At night, a dizzying display of lights cruelly exposes the surrounding shops and houses grown green, brown and weary from pollution and rain.

Inside this shining behemoth called Quest, Kolkatans with fat pocketbooks spend their rupees on luxury foreign brands such as Gucci and eat at Michelin-star restaurants.

Outside, life's cadences remain much the same for people like my friend Amina.

She lives in a slum in the shadow of Quest.

She is part of a faceless, often-cited statistic: About 60% of India's nearly 1.3 billion people live on less than $3.10 a day, the World Bank's median poverty line. And 21%, or more than 250 million people , survive on less than $2 a day.

Like other middle-class Indians, I grew up knowing little about poor people's lives. We moved in separate worlds, which, in my mind, only grew further apart as India lurched ahead as a global economic power. The rich got richer; the poor mostly stayed poor. And the gap widened.

Today, the richest 10% in India controls 80% of the nation's wealth, according to a 2017 report published by Oxfam, an international confederation of agencies fighting poverty. And the top 1% owns 58% of India's wealth. (By comparison, the richest 1% in the United States owns 37% of the wealth.)

Another way to look at it: In India, the wealth of 16 people is equal to the wealth of 600 million people.

Those startling numbers about my homeland make me think of it as almost schizophrenic.

One India boasts billionaires and brainiacs, nuclear bombs, tech and democracy. The other is inhabited by people like Amina. In that India, almost 75% still lives in villages and leads a hardscrabble life of labor; only 11% owns a refrigerator; 35% cannot read and write.

I am meeting Amina on this day because I rarely see policymakers or journalists talk to people like her about India's progress. Kolkata's Quest Mall is one representation of India's economic success, and I want to ask Amina what she makes of it.

Kolkata's Quest Mall boasts upscale shops and restaurants, but outside life's cadences have changed little over the years.

My changing homeland

I have known Amina since 1998, when she began working at my parents' flat. She walked every morning -- sometimes in rubber flip-flops, sometimes barefoot -- from her room about a mile and a half away. She arrived around 10 to wash the pans from the night before and the dishes from breakfast. She scrubbed hard, and we often joked that we could taste the grit of Ajax in our fish curry.

She dusted the furniture, finely covered with a layer of Kolkata dust even though the day was still young, and hand washed clothes too delicate for our rustic washing machine.

Amina was probably then already well into her 60s, though she used to say: "I think I am 50." She didn't have a single piece of documentation, but her family insisted she was born before India gained independence in 1947.

She stood not much taller than my wheelchair-bound mother, paralyzed from a massive stroke. But no one was fooled by Amina's small stature; she was steely from years of domestic labor.

My mother adored her and even after my parents died in 2001 and I sold the flat, I sought out Amina on every trip home to Kolkata.

On one visit, I learned her husband, Sheikh Fazrul, had died, and as she grew more feeble, she had a hard time keeping jobs. I always tried to slip her a few rupees, but she never took the money without insisting on "earning" it. She offered a massage or pedicure in exchange.

I visit India often, partly because I am different from many of my Indian-American peers who arrived in the United States as young immigrants and did not look back. My parents moved back and forth from India throughout my youth, and my personal connections to my homeland run deep.

But there is another reason as well. Increasingly I've grown intrigued by India's metamorphosis from a poor "Third World" former colony to a global power.

I am aware, too, that a Westerner's view of India is often clichéd -- it's a land of corruption, bus crashes, pollution, arranged marriages and colorful festivals. It may still be all of that, but there are so many new dimensions to Indian society.

Half of its population -- that's 600 million people -- are under the age of 25. A nation long known for poverty and hunger is experiencing a rise in obesity in urban areas. And the information technology sector, a primary driver of Indian growth, is also responsible for pushing centuries-old traditional trades to extinction.

The changes force me to reacquaint myself constantly with the land of my birth.

Amina walked from a room in a slum to the author's flat in Kolkata, where she dusted furniture and washed dishes.

Beyond the beautiful

On this afternoon, I am eager to see how Amina has fared since our last meeting. I navigate a dark, maze-like alleyway that leads to Amina's one-room abode.

The air is smoky from coal-burning stoves, the sulfuric smell colliding with the perfume of onions, garlic and garam masala in the woks of women cooking lunch.

There's no indoor plumbing, and I see teenage girls fetching water in red plastic buckets from an outside tubewell . There's a common toilet, but men and women bathe out in the open.

I think of Katherine Boo's best-seller, "Beyond the Beautiful Forevers," an exquisitely detailed chronicle of life inside a Mumbai slum. What I took away from that book was a realization that poor people in slums such as Amina's are not necessarily jostling to become India's next billionaire. They just want to fare better than their neighbors, move up a notch, however small, in the money ladder -- not unlike any of us who strive for a better house, a shinier car, a good education for our kids.

But Amina never moved up and that is perhaps her great sadness; that she was widowed by a man who she believes had neither the verve nor the physical strength to improve his lot in life.

I spot Amina's granddaughter, Manisha, and she takes me to her. Amina's room is cave-like, with no windows. A wooden cot sits up on bricks to keep it dry when the monsoons intrude. A television set, circa 1990, perches precariously on a shelf. Scratched aluminum pots adorn a wall facing the bed as though they were priceless works of art.

For this, Amina pays $2 a month, about what she used to earn at my parents' house. Rent controls in the slum are the only reason her son-in-law, who lives nearby, can afford to keep her here. She shares the space with her grandchildren and, sometimes, a daughter who lives in Kashmir.

People like Amina inspire economists such as Devinder Sharma to push India to take an alternate path to development. He is a bit of a firebrand, on a crusade to highlight the plight of India's poor. He argues that India's tax structure and other government incentives benefit its wealthiest industrialists -- such as billionaire Sanjiv Goenka, the builder of Quest Mall.

In business circles, Sharma is called anti-development. Indian entrepreneurs have their own ideas on why there is enormous inequality. They point to government corruption and inefficiency: India still ranks high on Transparency International's corruption perception index , at 79 out of 176 countries, with 1 (Denmark) being the least corrupt. (The United States ranks 18.)

Near the upscale Quest Mall in Kolkata, the poor struggle to survive on the streets.

Other factors feed the wealth gap, adds Raj Desai, an expert on economic development at Georgetown University. It matters whether you are a man or a woman, whether you belong to the untouchable caste. It matters where you live -- in a remote village or in an urban center. Someone like Amina, Desai says, is better off than the rural poor.

I take off my shoes and walk into Amina's room. She is on the floor and cannot stand up by herself to give me her usual warm hug. She gained weight after arthritis took hold of her body and limited her mobility. She's in her 80s now and has managed to live beyond the average age of death in India: 68.

I sit down on the cement floor to meet her eyes. I had told her ahead of time that I would be taking her on an outing.

"It's so good to see you," she says. "Where are we going today?"

"To another world," I say.

'Where have we come? It's so clean'

Amina hobbles to another room to get dressed and returns wearing a new orange and white printed cotton sari, the kind I know will run for at least the first dozen washings. She is barefoot, the cracks on her feet blackened by dirt.

We walk to the road and get into the car I have borrowed. She tells me she has ridden in a car or a taxi a few times in her life, mostly when her employers arranged for the ride.

The car meanders down the road that Amina traversed by foot every day. Finally, we arrive at Quest, where the juxtaposition of old and new is jarring.

Outside the mall, I watch Tapan Datta crack an egg at his roadside food stall, as he has for the past 15 years. He recently raised the price of his omelet to 10 rupees, or 14 cents. Inside the mall, a veggie quesadilla at the American chain Chili's costs 25 times more.

Quest hasn't really hurt his business that much, Datta laughs, because his customers can't afford anything in there. It's beyond the realm of most Kolkatans, including Amina.

When we try to step out at the main entrance, a security guard rushes toward us.

The mall was another world to Amina. She'd never been inside before.

"No entrance for her," he says in Hindi. "No one can go in without shoes."

I see the sign on the glistening glass doors: "Rights to admission reserved."

I tell him Amina requires a wheelchair, an embellished truth that allows us to foray into the mall without Amina's feet touching the sparkling Italian marble tiles. Amina's eyes grow big. Her head swivels from side to side, as though she were watching a tennis match.

"Where have we come? It's so clean," she asks. She has seen Kolkata's newest mall from the outside but never dared go near it.

It's midafternoon on a weekday, and there isn't the normal crowd at the mall. I see mostly women and teenage girls bopping in and out of stores like Vero Moda and Michael Kors.

I wheel Amina into the Gucci store. The salesclerks look at us in wonder: Why is a middle-class woman catering to a poor one?

"How can I help you?" asks a woman behind the counter.

I tell her to ask Amina. For a moment, the woman (she did not want to give me her name) does not know how to react but then asks politely: "May I show you a bag?"

Amina points to a silvery, buttery leather concoction.

We ask the price. "It's 1.25 lakhs," the clerk tells us. That's 125,000 rupees or $1,865.

I wait for Amina's reaction, but there is none. She cannot even fathom the amount. It's as abstract as "gazillion."

In America, few people can afford to drop almost $2,000 on a handbag. But poor people there can at least walk into a mall and grasp what it would take to pay that amount. They could even possibly save enough to buy it one day.

It would have taken Amina at least 25 years to earn that amount.

In a way, I am relieved she cannot comprehend the price. I worry she might have felt humiliated otherwise, and that is far from my intention.

'I have come from hell to heaven'

How to solve this massive inequality is the million-dollar question being argued all over India. Does national growth need more time to deliver its magic, or is India's economic formula flawed?

The country's growth in the last 15 years or so has largely been jobless growth, which some analysts say exacerbates the problem.

French economist Thomas Piketty, who authored the seminal work " Capital in the 21st Century ," caused a stir by suggesting higher taxes for the rich. One Indian media outlet labeled him "Modern Marx."

Among the biggest problems, of course, is a lack of decent education and public health. I'm not sure anyone has all the answers at this point, but I'd like to see enough progress so that people such as Amina, who worked hard all her life, don't have to die in poverty.

Desai, the Georgetown economist, talks about establishing a pension system in the vein of Social Security to provide an immediate lift for millions. To that end, Prime Minister Narendra Modi's government has launched a government pension plan, though it is not without criticism.

It's too late anyway for Amina. As part of India's unregulated domestic work force, she never had any protection. Only now are some Indian states passing laws to shield such workers from exploitation.

I take Amina to the mall's food court on the top level, and she orders a heaping plate of chow mein. She's never seen chopsticks before; nor has she used a fork. I tell her it's OK to eat with her hands. She doesn't care for green peppers, fishes them out of the noodles and pushes them aside.

Again, I feel the burn of many eyes upon us.

"What do you think of this place?" I ask her.

"I have come from hell to heaven."

After a few minutes of silence, she says, "I suppose now you will have to take me back."

In the car, Amina places her hand on mine.

She tells me her parents died when she was a child, and an aunt brought her from her native Allahabad to Kolkata. She started working at an early age and toiled her whole life until her body gave in. Now she lives day to day at the mercy of her daughters and sons-in-law.

"Aami garibmanush aachi, didi."

I am a poor person, she says in broken Bengali.

"And I will always be a poor person," she says. "There is no way out for people like me."

Her words make me terribly sad.

Beyond the data and the academic discussions of what it means to be poor in India, I know this: There is no version of the American dream in Amina's world. She would not let herself dare to hope.

We make our way back through congested lanes teeming with street life. Here you can buy almost anything you need, from syrupy fried sweets called jilebis to the blood pressure pills you'll need if you eat too many. I look at a stall selling leather handbags.

They hang from hooks on a wooden pole, their black leather dulled by sun and dust.

These are cheaper than Gucci, only $3 each. I ask Amina if she would like one.

"I can afford these," I say.

"What will I do with a bag?" she asks.

After a lifetime, she has nothing.

I drop her off at the entrance to the slum.

"Are there poor people in America?" she asks before getting out of the car.

I tell her there are people everywhere who are in need.

"Do they go shopping at malls?" she asks.

"Sometimes," I respond. "See you next time, Aminaji."

"Maybe," she says. "If I am still here."

I took Amina to Quest Mall at the end of 2015 and last saw her 10 months ago. I inquired about her shortly before the publication of this story and learned that her slum has been bulldozed to make way for a high-rise residential building. Flats in that part of Kolkata can sell for $150,000 or more. I also learned that the landowners relocated Amina and her family to another slum. I am still trying to find her.

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Poverty in India: Real-Life Consequences & Sustainable Solutions

Over the last several decades, India has become one of the fastest growing economies in the world. But even with this impressive progress, poverty in India continues to be an enormous problem. A small percentage of people in India have benefitted from this growth, while the vast majority still struggle to meet their basic daily needs. This inequity is exacerbated by a long-standing social caste system in India that disproportionately affects women and children.

In this blog post, we’ll explain the complex causes of poverty in India, the consequences it has on so many of its people, and the work Outreach International is doing to help people lift themselves out of poverty, and into a life of prosperity and hope.

Understanding the Causes of Poverty in India

Poverty in India is a result of various overlapping factors , spanning a long history of social and economic issues. The social issues include a caste system that causes inequity among the citizens of India. People who are born into certain socioeconomic groups or ethnicities can find it more difficult than others to access education, healthcare, and employment opportunities. Economic issues include a history of financial pressure from foreign countries which makes the economy of India sensitive to external markets which are beyond its control.

Outreach Project: Sumita accessed an Usha School Program sewing machine from Outreach’s Program Partner, Outreach India, in Feb, 2023.

Statistics and Facts

• The September 2023 Global Poverty Update by the World Bank revealed that at the $3.65 poverty line, India accounts for 40% of the global poverty rate of 24.1%. ( The World Bank )
• Over a third of all people living in poverty in the world live in South Asia, which amounts to roughly 389 million people. ( The World Bank )
• In South Asia, the rate of extreme poverty, measured by the international poverty line of $2.15, increased by 1.9 percentage points to 10.5%. India accounts for almost 70% of this global change in extreme poverty. ( The World Bank )
• Between 2012 and 2021, 40% of the wealth created in India has been captured by just the wealthiest 1% of the population. ( BBC )

Factors Contributing to Poverty in India

The complex causes of poverty in India lead to equally complex factors that perpetuate the problem. These include:

Limited Access to Education

Despite making strides in improving literacy rates in general, access to adequate education remains out of reach for many groups in India, especially for those who live in remote areas.

Unemployment and Underemployment

The uneven distribution of economic growth creates limited job opportunities in many geographic areas, especially among young people who are actively seeking employment.

Inadequate Healthcare Infrastructure

The healthcare that the government provides for people who live in poverty in India is inadequate in many geographic areas. Serious health issues, often related to childbirth, can go undertreated, leading to overwhelming debt and feelings of hopelessness.

Social Inequality

Discrimination based on social caste, gender, and ethnicity make it harder for marginalized groups to experience basic socio-economic advancement. This creates a cycle of poverty that passes these issues on to the next generation.

Outreach Project: A new 4G cell tower benefits Sumita and everyone in Khambesu Village.

Historical, Economic, and Social Factors of Poverty in India

India has dealt with a long history of colonization that led to the export of wealth and resources for generations. Although this issue is a part of India’s past, the legacy of uneven trade continues to put financial pressure on India’s poorest citizens. Also, like many economies of the world, social disparity makes it almost impossible for people who live in poverty to climb out of it alone.

The Cost of Poverty in India

The consequences of poverty in India are profound and far-reaching. These include:

Unequal Distribution of Wealth and Resources

The concentration of wealth among a small percentage of the population of India limits access to essential resources and opportunities for the majority of its citizens. According to the Harvard Business Review , the wealthiest 10% of people in India hold 77% of the nation’s wealth. It also states that as of 2023, there were 119 billionaires in India, whose wealth continues to grow at disproportionate rates.

Barriers to Receiving Healthcare

The social healthcare system in India ranks very low among other countries. Expert care and the most advanced treatments remain expensive, and so only those who can afford it have access to it. Those who live in poverty sometimes have to make the choice between health or debt. This can be especially difficult when it comes to the health of their children. This lack of access to quality healthcare is evident in the relatively high infant mortality rates .

Outreach International’s Impact in India: Community-Led Solutions to Change this Reality

It can be nearly impossible for people who live in poverty to solve their issues alone. Outreach International works tirelessly to empower people to help themselves. Our partners at Outreach India bring community groups together to learn to identify their unique poverty-related issues, and then mobilize to solve them.

Many people who live in remote areas in India must deal with a lack of adequate infrastructure. This means that there may be no central power grid, or regional sewage and water treatment system. People who live under these conditions must spend much time and effort fulfilling their basic daily needs. But with the help of Outreach facilitators, solutions can be found.

Solar Water Systems

Until 2010, the citizens of Nandibadi had to walk a kilometer each day to collect water from a river. That year, they had a single spout well installed, which was considered a significant improvement at the time. Even then, however, people had to wait in line and take turns using the hand pump from what was their only water source. With the help of Outreach facilitators, they had a solar-powered water well and storage system installed. This improvement not only made life easier, but it freed up large amounts of time for people to spend making progress in other areas of their lives. ( Read about the Nandibadi Solar Water System )

Solar Street Lights

In Lelibadi, people stayed home after dark because of fear of predatory animals and the possibility of crime. There were no streetlights or electric grid to power them. The community-based organization mobilized to have streetlights installed, each powered by an individual solar panel. Now, the nights are brighter, and the community can gather together, socialize, and travel safely. ( Read about the Lelibadi Solar Street Lights )

Safe Sanitation

Safe sanitation is a crucial factor in the health and wellbeing of a community. Illness from contaminated drinking water and unpleasant surroundings due to a lack of a sanitation system in a community would make life difficult for anyone. Community leaders in Kurumpeta successfully managed a latrine construction project that solved their sanitation issues. ( Read about Solving the Sanitation Crisis )

Disability Inclusion

In Kunjibadi Village, Naika lost his leg in a road accident in 2016. This left him and his wife dependent on her income alone, which placed them well below the poverty line. With help from Outreach India, Naika learned that he was eligible for disability benefits. He prepared his documentation, visited the government offices, and now receives benefits that cover basic daily needs for the family. Naika and his wife feel empowered, and able to look to the future with hope. ( Read about Disability Inclusion in Community-Led Development )

Help Outreach Break the Cycle of Poverty in india

Usha will finish school soon and hopes to work for the government so she can help people.

How to Help

Poverty in India is a multifaceted and pervasive issue that affects millions of people. By understanding its root causes, addressing its consequences, and supporting initiatives that promote socio-economic empowerment, we can all help India find truly equitable prosperity.

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• Poverty in India Essay for Students in English

Essay on Poverty In India

People living in poverty do not have enough money for basic necessities such as food and shelter. An example of poverty is the state a person is in when he is homeless and does not have enough money. The rate of poverty in India is increasing because of the population in the urban areas. Most importantly, crores of peoples are below the poverty line and most of the people are on the borderline of poverty. Poverty in India is seen mainly in the rural areas because of the uneducated and unemployed and increased population. Many people do not afford to get proper foods for their daily life and even they don’t have their own homes, they sleep on the footpath or road, more populations need more food, money, and for staying houses but due to lack of this poverty grows very quickly, thus in addition rich are growing richer and the poor becoming more poorer which becomes difficult to fill the gap. Poverty has many effects like it reduces poor housing, illiteracy, increase the rate of child labour and unemployment, poor hygiene hence these poor people can not afford a balanced diet, nice clothes, well education etc. reason only because they don’t have much money to afford this. Poverty can be controlled by giving them proper education and also providing the proper facilities to the farmers so that those farmers get more profitable and do not migrate to cities in search of employment. Also, the illiterate people should get proper education to make their life better. Family planning is also essential for coming out of poverty. Poverty in our country is from ancient times. Even earlier times the poor people were not given the place that rich people used to get even if they were not allowed to enter religious places. Main causes of poverty are like unemployment, lack of education, poor utilization of resources, corruption and poor government policy.

How You Can Improve or Solve Poverty in India?

Poverty can be solved by improving food security by providing three meals a day and making them healthy and providing houses for those people at low cost and giving them proper education and facilities so that they can earn well and take care of their family and live a peaceful life. Awareness on population so that once the population is under control, the economy of the country will improve and move towards development and decrease in the poverty line. Poverty is becoming a complex problem for the people and for the government. How to overcome this, in India the poverty is high compared to other countries because the growth rate of per capita income per person is very low.

With lack of job opportunities many people move as a rickshaw puller, construction workers, domestic servants etc, with irregular small incomes hence they live in slum areas. Also, lack of land resources has been one of the major causes of poverty in India, even the small farmers of our country lead to poverty because they cultivate but do not get proper money in terms of profit and leads to poverty.

Population of India

The population has been increasing in India at a rapid speed, India’s population in 1991 was around 84.3 crores where was poverty at a high rate but now the current population of our country is around 130 crores whereas the population is almost doubled in last three decades but still not enough done for controlling the poverty in our country. Due to an increase in population, there is more unemployment, hence poverty is just the reflection of unemployment. More capital is required for making industry, giving proper transport facilities and other projects, hence the deficiency of its country is still underdeveloped and causes more poverty. Lack of skilled labor also leads to poverty because less-skilled labor have insufficient industrial education and training. Lack of infrastructure means that transport and communication have not been properly developed so that the farmers are not getting fertilizers for cultivation on time and industries do not get power supply and raw materials on time and thus end products are not marketed properly and not reachable on time. Because of poverty sometimes we don’t get those things for what we actually are. Hence to come out of poverty our government has to be more serious and also the citizens should take equal responsibilities. Remove the poverty from country governments has started many steps, in last 2-3 years we have seen that they become more serious by bringing GST in the action, demonetization so because of GST all the businessman can pay full tax and which will help to develop the country and the poverty ratio can be reduced. Steps of demonetization were taken so that black money can be utilized for the poor people and poverty can be reduced. We can overcome poverty by following all the guidelines of the government and can be free from poverty.

India's Poverty Factors

One of the biggest problems of poverty in India is the country's rapid population growth. As a result, there is a high rate of illiteracy, poor health-care facilities, and a lack of financial resources. Furthermore, the high population growth rate has an impact on individual income, making individual income much lower. By 2026, India's population is predicted to surpass 1.5 billion, making it the world's largest country. However, Economic growth is not rising at the same rate as the rest of the world. This indicates a labor shortage. About 20 million new jobs will be required to accommodate this big population. If such a vast number of people are poor, the number of poor will keep rising.

How Much Research is Important for Students to Write Good Essays?

The students must realize that brainstorming and a mind map of the essay will take them in the direction of their research. With the advent of the internet, the days are numbered for students who rely on a well-tipped encyclopedia from the school library as their only authoritative source for their story. If there is any real problem for our readers today is reducing their resources to a manageable number. At this stage, it is important to:

Make sure the research material is directly related to the essay work

Record detailed sources of information that they will use in their story

Communicate in person by asking questions and challenging their own bias

Identify the main points that will be highlighted in the story

Gather ideas, arguments, and opinions together

Identify the major issue they will discuss in their case.

Once these stages have been completed by the student, the student will be ready to make his points in a logical order and prepare an essay.

Therefore, the topic discussed on this page is poverty and poverty is not a human problem but a national one. Also, it should be addressed immediately with the implementation of effective measures. In addition, the eradication of poverty has been a prerequisite for sustainable and inclusive growth for individuals, communities, the country and the economy.

Paragraph Tips on Essay Writing

Each paragraph should focus on one main idea

The Paragraphs should follow a logical sequence, students should collect similar ideas together to avoid collisions

Paragraphs should be stated consistently, learners should be able to choose which line to reverse or skip.

Transition words and similar phrases, as a result, should instead be used to provide flow and provide a bridge between Paragraphs.

General Structure of an Essay

Introduction: Give the reader the essence of the essay. It sets out the broader argument that the story will make and informs the reader of the author's general opinion and method of questioning.

Body Paragraphs: These are the ‘flesh’ of the essay and outline the point made in the introduction by a point with supporting evidence.

Conclusion: Usually the conclusion will repeat the middle argument while providing a summary of the main reasons supporting the story even before linking everything back to the first question.

FAQs on Poverty in India Essay for Students in English

1. What are the Causes of Poverty in India?

The cause of poverty is very obvious in a country like India. The people in India are very careless about the population growth and due to which there is a lot of hassle and unnecessary elevation in population growth rate. This is automatically leading to poverty as there are fewer resources and more people to be served in each state in India. Various causes affect poverty:

Unemployment.

The intensity of population.

The high rate of inflation.

Lack of skilled labor

2. What are the Types of Poverty?

Although there are only two main types of poverty existing in India we will be learning all of them as mentioned in the following lines. The two main classifications of poverty are relative poverty and absolute poverty and both of them emphasize income and consumption. Sometimes, poverty cannot be blamed or associated with economic problems but also it must be associated with society and politics.

There are six types of poverty which are listed below:

Situational poverty.

Generation poverty.

Absolute poverty.

Relative poverty.

Urban poverty.

Rural poverty.

3. How to Reduce the Poverty Line in India?

India is a country that has been under the radar of poverty for centuries. The people of India are making efforts to take themselves out of the poverty line but there are a lot of hindrances. The lack of resources and limited alternatives have thrown the rural and urban residents below the poverty line making life unhealthy and miserable for them. 

Here are some measures listed below

Provide food, shelter and clothes facilities to poor people.

Encourage them for education either male or female. 

Give employment.

4. Why choose Vedantu for referring to the Poverty in India essay for students in English?

Students should refer to Vedantu for downloading as these solutions will be filling you with the basic knowledge of writing essays. There are loads of vocabulary words and phrases which will enable the students to write high-class essays. The Vedantu website provides 100% authentic content which will lead to additional accuracy of the student’s essay. Basic concepts of writing an essay are available free of cost on the Vedantu website. Avoid problems and enjoy hassle-free preparation with the help of Vedantu.

5. Why refer to Vedantu for studying the Poverty in India Essay for Students in English?

Vedantu not only provides comprehensive and detailed knowledge to the students but also imparts the ability to study on their own without any hassle to the students. The concept of Poverty in India Essay for Students in English is so beautifully explained in the Vedantu website that anyone who is reading the content and the rules will understand in one instance whatever that person is searching for. The students must know how to write good essays from a very young age and hence the experts at Vedantu are fulfilling that request of the students.

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1. economic exploitation, 2. imbalance in trade, 3. impact on indigenous industries, 4. financial exploitation, 5. financial integration, 6. legacy of inequality, poverty in india after independence, 1. historical legacy, 2. unequal distribution of resources, 3. corruption and governance issues, 4. weak institutions, 5. dependency on primary commodities, 6. social inequalities, 7. population growth, 8. global economic factors, frequently asked questions (faqs).

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Understanding Poverty in India: Causes, Estimation, and Challenges

Table of Contents

(Relevant for Economics Section of General   Studies Paper Prelims/Mains)

Poverty signifies a state or circumstance wherein an individual or a community lacks the necessary financial means and fundamental requisites to achieve a basic standard of living. It indicates that the earnings derived from employment fall to such a minimal extent that fundamental human necessities remain unattainable.

As per the World Bank’s perspective, poverty denotes significant deprivation in overall well-being and encompasses multifaceted dimensions. This encompasses inadequate income levels and the incapability to secure essential commodities and services vital for survival with dignity. Moreover, poverty encompasses limited access to proper healthcare and education, deficient availability of clean water and sanitation facilities, insufficient physical safety, absence of empowerment, and limited potential and opportunities to enhance one’s quality of life.

Within India, as of 2011, around 21.9% of the population resides below the national poverty threshold.

In 2018, nearly 8% of the global workforce and their families were constrained to subsist on an income of less than US$1.90 per individual per day, in line with the international poverty benchmark.

Poverty estimation in india

• Poverty assessment in India is conducted by NITI Aayog’s task force, employing data gathered by the National Sample Survey Office under the Ministry of Statistics and Programme Implementation (MOSPI). The poverty line in India is determined by calculating the poverty threshold, which relies on consumption expenditure rather than income levels.
• In India, the evaluation of poverty is based on consumer expenditure surveys carried out by the National Sample Survey Organisation. A household is classified as poor if its expenditure falls below a specified poverty line. The extent of poverty is gauged through the poverty ratio, denoting the proportion of the impoverished population to the total population, presented as a percentage and commonly referred to as the head-count ratio.
• The Alagh Committee (1979) established the poverty line considering a daily minimum caloric intake of 2400 and 2100 calories for adults in rural and urban areas, respectively. Subsequent committees, such as the Lakdawala Committee (1993), Tendulkar Committee (2009), and Rangarajan Committee (2012), have contributed to refining poverty estimation methodologies.
• According to the Rangarajan committee’s findings (2014), the poverty line is set at a Monthly Per Capita Expenditure of Rs. 1407 in urban regions and Rs. 972 in rural areas.
• Population Explosion: India’s population has consistently surged over the years. In the past 45 years, it has grown at an annual rate of 2.2%, signifying an average addition of approximately 17 million individuals to the country’s populace each year. This surge further escalates the demand for consumer goods substantially.
• Diminished Agricultural Productivity: A pivotal factor contributing to poverty is the low productivity within the agricultural sector. This situation is multifaceted. Primarily, it stems from fragmented and divided land holdings, lack of access to capital, ignorance regarding modern farming technologies, reliance on conventional cultivation techniques, and losses during storage.
• Inefficient Resource Utilization: The prevalence of underemployment and concealed unemployment, particularly in the agricultural domain, has resulted in diminished agricultural output and a corresponding decline in living standards.
• Limited Economic Growth Rate: Economic advancement has been sluggish in India, particularly during the initial 40 years following independence, prior to the economic liberalization reforms in 1991.
• Escalating Prices: Persistent inflation in the country has augmented the hardships endured by the impoverished. While a small portion of the population has benefited, those from lower income strata have borne the brunt, struggling to meet even their most basic needs.
• Unemployment: Unemployment stands as another notable contributor to poverty in India. The surging population has led to a concurrent surge in job seekers, but the growth of job opportunities has not kept pace with the escalating demand.
• Shortage of Capital and Entrepreneurial Ventures: The insufficiency of capital and entrepreneurial activities has resulted in low investment levels and insufficient job creation within the economy.
• Social Factors: Beyond economic factors, various social barriers obstruct the eradication of poverty in India. Some of these hindrances include inheritance laws, the caste system, and certain entrenched traditions.
• Colonial Exploitation: The two-century-long British colonization and dominion over India had a detrimental impact, causing the decline of traditional handicraft and textile industries. The colonial policies converted India into a mere supplier of raw materials for European industries.
• Climatic Influences: The majority of India’s impoverished population resides in states like Bihar, Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Odisha, Jharkhand, among others. Natural calamities such as frequent floods, disasters, earthquakes, and cyclones heavily impact agriculture in these regions.

The Global Multidimensional Poverty Index-2018, issued by the UN, highlighted that around 271 million individuals transitioned out of destitution between 2005-06 and 2015-16 within India. The poverty rate within the nation has nearly halved, plummeting from 55% to 28% over the course of a decade. Nevertheless, a substantial segment of India’s population still resides below the Poverty Line.The swift expansion of the economy and the integration of technology into social sector initiatives have played a pivotal role in significantly reducing extreme poverty within the country.Despite the rapid strides made in terms of growth and advancement, an unacceptably large portion of our populace continues to grapple with extensive and varied forms of deprivation. Consequently, addressing poverty in India necessitates a more comprehensive and all-encompassing strategy.

To master these intricacies and fare well in the Sociology Optional Syllabus , aspiring sociologists might benefit from guidance by the Best Sociology Optional Teacher and participation in the Best Sociology Optional Coaching . These avenues provide comprehensive assistance, ensuring a solid understanding of sociology’s diverse methodologies and techniques.

poverty in India, poverty estimation, poverty causes, poverty line, NITI Aayog, National Sample Survey Office, MOSPI, Alagh Committee, Lakdawala Committee, Tendulkar Committee, Rangarajan Committee, population explosion, agricultural productivity, resource utilization, economic growth rate, inflation, unemployment, capital shortage, social factors, colonial exploitation, climatic influences, Global Multidimensional Poverty Index, poverty reduction, technology integration, social sector initiatives, Best Sociology Optional Coaching, Sociology Optional Syllabus.

Choose T he Best Sociology Optional Teacher for IAS Preparation?

At the beginning of the journey for Civil Services Examination preparation, many students face a pivotal decision – selecting their optional subject. Questions such as “ which optional subject is the best? ” and “ which optional subject is the most scoring? ” frequently come to mind. Choosing the right optional subject, like choosing the best sociology optional teacher , is a subjective yet vital step that requires a thoughtful decision based on facts. A misstep in this crucial decision can indeed prove disastrous.

Ever since the exam pattern was revamped in 2013, the UPSC has eliminated the need for a second optional subject. Now, candidates have to choose only one optional subject for the UPSC Mains , which has two papers of 250 marks each. One of the compelling choices for many has been the sociology optional. However, it’s strongly advised to decide on your optional subject for mains well ahead of time to get sufficient time to complete the syllabus. After all, most students score similarly in General Studies Papers; it’s the score in the optional subject & essay that contributes significantly to the final selection.

“ A sound strategy does not rely solely on the popular Opinion of toppers or famous YouTubers cum teachers. ”

It requires understanding one’s ability, interest, and the relevance of the subject, not just for the exam but also for life in general. Hence, when selecting the best sociology teacher, one must consider the usefulness of sociology optional coaching in General Studies, Essay, and Personality Test.

The choice of the optional subject should be based on objective criteria, such as the nature, scope, and size of the syllabus, uniformity and stability in the question pattern, relevance of the syllabic content in daily life in society, and the availability of study material and guidance. For example, choosing the best sociology optional coaching can ensure access to top-quality study materials and experienced teachers. Always remember, the approach of the UPSC optional subject differs from your academic studies of subjects. Therefore, before settling for sociology optional , you need to analyze the syllabus, previous years’ pattern, subject requirements (be it ideal, visionary, numerical, conceptual theoretical), and your comfort level with the subject.

This decision marks a critical point in your UPSC – CSE journey , potentially determining your success in a career in IAS/Civil Services. Therefore, it’s crucial to choose wisely, whether it’s the optional subject or the best sociology optional teacher . Always base your decision on accurate facts, and never let your emotional biases guide your choices. After all, the search for the best sociology optional coaching is about finding the perfect fit for your unique academic needs and aspirations.

To master these intricacies and fare well in the Sociology Optional Syllabus , aspiring sociologists might benefit from guidance by the Best Sociology Optional Teacher and participation in the Best Sociology Optional Coaching . These avenues provide comprehensive assistance, ensuring a solid understanding of sociology’s diverse methodologies and techniques. Sociology, Social theory, Best Sociology Optional Teacher, Best Sociology Optional Coaching, Sociology Optional Syllabus. Best Sociology Optional Teacher, Sociology Syllabus, Sociology Optional, Sociology Optional Coaching, Best Sociology Optional Coaching, Best Sociology Teacher, Sociology Course, Sociology Teacher, Sociology Foundation, Sociology Foundation Course, Sociology Optional UPSC, Sociology for IAS,

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Essay on Poverty in India

In this essay we will discuss about Poverty in India. After reading this essay you will learn about: 1. The Concept of Poverty 2. Absolute and Relative Poverty 3. Incidence 4. Recent Poverty Debate in India 5. Poverty Differential among Different States in India 6. Poverty Alleviation Programmes 7. Economic Reforms and Poverty Eradication Programme 8. World Bank’s New Perception.

• Essay on the World Bank’s New Perception of Poverty

Essay # 1. The Concept of Poverty :

Poverty is a peculiar problem from which various countries of the world, particularly the Third World, have been suffering. There cannot be a common definition of poverty which can be broadly accepted everywhere. Thus there are large differences between the definitions of poverty accepted in various countries of the world.

Leaving aside all these differences it can be broadly said that poverty is a situation where a section of the society, having no fault of their own, is denied of even basic necessities of life. In a country, where a chunk of the population is deprived of even minimum amenities of life since long period, the country is suffering from a vicious circle of poverty.

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Poverty is considered as the greatest challenge faced by the societies in the third world countries. Poverty is also concerned with the comparison with respect to a fixed line—known as poverty line. However, the poverty line is fixed extraneously and, therefore, remains fixed for a certain period.

Poverty Line:

Normally poverty is defined with poverty line. Now the question which is relevant at this point is What is the poverty line and how is it fixed? The answer to the question is that the poverty line is a cut-off point on the line of distribution, which usually divides the population of the country as poor and non-poor.

Accordingly, people having income below the poverty line are called poor and people with income above poverty line are called non-poor. Accordingly, this measure, i.e., the percentage of people living below the poverty line is known as head count ratio.

Moreover, while fixing a poverty line we must take adequate care so that the poverty line is neither too high nor too low rather it should be reasonable one. While fixing the poverty line, consumption of food is considered as the most important criteria but along with it some non­food items such as clothing, and shelter are also included.

However, in India we determine our poverty line on the basis of private consumption expenditure for buying both food and non-food items. Thus it is observed that in India, poverty line is the level of private consumption expenditure which normally ensures a food basket that would ensure the required amount of calories.

Accordingly, the average caloric requirements for rural and urban person are fixed at 2,400 and 2,100 calories respectively. Thus, the required amount of calories would normally coincide with one of the class- interval or will fall between two intervals.

Using inverse interpretation method, one can find amount of consumption expenditure at which the minimum calorie requirement is met. This amount of consumption expenditure to meet the minimum calorie requirement for person is called the poverty line.

In India, broadly accepted definition of poverty emphasises more on minimum level of living rather than on reasonable level of living. Accordingly, it is broadly agreed that poverty can be termed as a situation where a section of the population fails to reach a certain minimum consumption standard. Differences arise with the fixing of this minimum consumption standard.

After a thorough examination, the study group set up by the Planning Commission in July 1962 recommended a standard of private consumption expenditure of Rs 20 (at 1960-61 prices) per capita per month as the bare minimum amount common to both rural and urban areas.

At the initial stage, the Planning Commission accepted the study Group’s poverty criterion. Various researchers like B.S. Minhas and A. Vaidyanathan also made their study on the basis of this definition. But other researchers like Dandekar and Rath, PK. Bardhan and Ahluwalia made their study on the basis of their own definition of poverty.

Later on, the “Task Force on Projections of Minimum Needs and Effective Consumption Demand” offered an alternative definition of poverty which has been adopted by the Planning Commission in recent years.

The Task Force defined the poverty line as the mid-point of the monthly per capita expenditure class which have a daily calorie intake of 2,400 per person in the rural areas and 2,100 in urban areas of the country. Accordingly, the minimum desirable standard was worked out at Rs 76 for the rural areas and Rs 88 for urban areas at 1979-80 prices.

Prof Galbraith once argued “Poverty is the greatest polluter”. There is definitely some logic in this argument. The entire world economy now considers poverty as their great enemy. In India, the problem of poverty is still quite acute. For the last forty-five years, Indian politicians have been holding the expectation and promise of poverty removal believing in the theory of the “trickle down”.

Most of them were of the opinion that the benefits of a high and sustained growth of the economy will eventually take care of bulk of the poor population of the country. But by the end of 1960s, it became quite clear that the benefits of growth could hardly trickle down and institutional reforms adopted in the country were strangled by vested class interests.

Considering this situation, a plethora of poverty alleviation measures were gradually adopted by the beginning of 1970s.

Again in 1987-88, the Planning Commission revised the standard of private consumption expenditure of 15.43 for rural areas and Rs 165.58 for urban areas per capita per month as a bare minimum amount for determining the poverty line. Again in 1999-2000, the same consumption expenditure per capita per month determined on the basis of NSSO data revised to Rs 211.30 for rural areas and Rs 454.11 for urban areas.

The Expert Group under the Chairmanship of Prof. S.D. Tendulkar revised the national poverty line at 2004-05 prices and accordingly the monthly per capita consumption expenditure of Rs 446.68 in rural areas and Rs 578.80 in urban areas in 2004-05.

Again in October, 2011 in response to the quarry of the Supreme Court, the Planning Commission made an attempt to revise the poverty line with the monthly per capita expenditure of Rs 965 for urban areas (Rs 32 per day) and Rs 781 in rural areas 26 per day).

But facing a severe criticism on the above prescription of below poverty line cap from several quarters, the UPA government at the Centre has now decided to revise the expenditure criteria by factoring in the 2009-10 NSSOs report on household expenditure.

The Planning Commission on October 3, 2011 was compelled to announce that a new methodology will be worked out to redefine the poverty line in consistent with the Food Security Bill passed recently by a new Expert Committee.

Planning Commission made another estimate of the poverty line in March 2012 and that was announced in the Parliament on 6th March, 2013. As per the latest available information, the poverty line at all India level for 2009-10 is estimated at monthly per capita consumption expenditure (MPCE) of Rs 673 (Rs 22.40 per day) for rural areas and Rs 860 (Rs 28.65 per day) for urban areas.

After 2004-05, this survey has been conducted in 2009-10.

The Planning Commission has updated this new poverty lines and poverty ratios for the year 2009-10 as per the recommendations of the Tendulkar Committee using NSS 66th Round (2009-10) data from the Household Consumer Expenditure Survey. Thus it has been estimated that the poverty lines at all India level as an MPCE of Rs 673 for rural areas and Rs 860 for urban areas in 2009-10.

Planning Commission made another estimate of poverty line in July 2013 by following the Tendulkar methodology, As per this latest estimate, the poverty line at all India level for 2011-12 is estimated at monthly per capita consumption expenditure (MPCE) of Rs 816 (Rs 27.20 per day) for rural areas and Rs 1,000 (Rs 33.33 per day) for urban areas.

The Planning Commission has updated this new poverty lines and poverty ratios for the year 2011-12. Thus, it has been estimated that poverty lines at all India level as an MPCE of Rs 816 for rural areas and Rs 1000 for urban areas.

Essay # 2. Absolute and Relative Poverty:

Most of the time, the concept of poverty and its discussion is usually confined to absolute poverty. Accordingly, absolute poverty is measured by a pre-determined level of living which families or households should be able to afford. Thus in absolute sense, the concept of poverty is not related to the income and the distribution of consumption expenditure, which is usually done in the measure of relative poverty.

Thus in the measure of absolute poverty, the absolute minimum consumption basket includes consumption of food grains, vegetables, milk products and other important items which are necessary for attaining healthy living along with access to other important non-food items. While doing so, these standards are converted into monetary units to define it as ‘Poverty Line’ .

People whose consumption expenditures are found below this threshold limit are usually considered as poor. For example, the one-dollar consumption expenditure per capita in PPP dollars is the absolute poverty line accepted internationally. This concept of absolute poverty is very much relevant to poor and less developed countries where large scale absolute poverty prevails.

Relative poverty, on the other hand, considers over all distribution of income and the relative position of a household within that distribution pattern. Here in this concept of relative poverty, the relative position of one section of people is compared with another group. This concept of relative poverty can also be extended to other countries to get a comparative estimate of poverty in a relative manner.

In 1871, Dadabhai Naoroji wrote a book entitled “Poverty and Un-British Rule in India” which shows that India was comparatively a very poor country. In 2003, the per capita income of USA was US $ 35,060 and that of United Kingdom was US $ 25,250 and thus UK can be considered as poor as compared to US.

Thus relative poverty is very much associated with the issues of inequality. Here the extent of income or consumption of the last quintile population (poorest) could be compared with the richest quintile showing a wide gap between the two.

In terms of relative poverty the last quintile population would be termed as poor whereas in terms of absolute poverty criterion the same last quintile group may not be termed as poor as they are maintaining the income and consumption bucket above the minimum level that represents poverty line.

If half of the population of the country is maintaining its average income below the per capita income of the country then they can be termed as poor on the relative criterion although they maintain the minimum basket of goods and services to remain above the poverty line. Thus relative poverty looks at the angle of inequality. Thus, the concept of relative poverty is completely different from Absolute poverty.

Essay # 3. Incidence of Poverty in India:

In order to determine the strategy of development of the country, it is quite essential to make an appropriate estimate of incidence of poverty in India. But appropriate and reliable data for the estimation of the extent of poverty is not available in India.

However, on the basis of NSS data on consumption expenditure, various estimates of the extent of poverty have been made by Minhas, Dandekar and Rath, P.K. Bardhan and Ahluwalia. But due to the differences in their concept of poverty, their results vary widely.

Let us now discuss the findings of these estimates:

Estimates of B.S. Minhas:

The study of the extent of poverty made by Minhas covered the period 1956- 57 to 1967-68. Taking the annual per capita minimum expenditure of? 240 as the minimum standard (on the basis on NSS data), he found that the proportion of people below the poverty line declined from 64 per cent in 1956-57 to 50.6 per cent in 1967-68.

Estimates of Dandekar and Rath:

Dandekar and Rath estimated their own standard of poverty line taking 2,250 calories as the desired minimum level of nutrition. They observed “that level of consumer expenditure is desirable which secures a diet adequate at least in terms of calories. In 1960-61, this was Rs 170 per capita per annum for rural households and Rs 271 per capita per annum for urban household”.

Their estimates revealed that in 1968-69 nearly 40 per cent of the rural population (i.e., about 166 million) and over 50 per cent of the urban population (i.e., nearly 49 million) were living below the poverty line.

Total number of persons living below the poverty line also increased from 117 million in 1960-61 to 216 million in 1968- 69, although the proportion of population below the poverty line remained the same at 41 per cent.

Estimates of P.K. Bardhan:

Bardhan advocated a lower standard for estimating the poverty line and thus considered Rs 15 per capita per month at 1960-61 prices for the rural poverty line and Rs 18 for the urban line. On the basis of the NSSO data on consumption expenditure, Bardhan’s study revealed that in 1968-69 about 55 per cent of rural population and 41 per cent of the urban population of the country were lying below the poverty line.

Moreover, Bardhan concluded that the percentage of population below the poverty line rose from 38 per cent in 1960-61 to 55 per cent in 1968-69.

Estimates of M.S. Ahluwalia:

Ahluwalia studied the incidence of poverty in India for the period 1956- 57 to 1973-74. Taking the same concept of poverty line of Rs 15 per month at 1960-61 prices for rural areas and Rs 20 per head per month for urban areas he estimated that 54.1 per cent of the rural population in 1956- 57 was lying below the poverty line.

This extent of poverty declined to 38.9 per cent in 1960-61 and then again rose to 56.5 per cent in 1966-67. He further estimated that in 1973-74, about 46.1 per cent of the rural population was below the poverty line. This revealed that the incidence of poverty in India fluctuated over the years.

Planning Commission’s Estimates of Poverty in India:

In recent years, the Planning Commission has also estimated the incidence of poverty in India taking Rs 77 per capita per month (at 1979-80 prices) as the bare minimum consumption for drawing the poverty line for the rural population.

Later on the Planning Commission revised per capita monthly expenditure for drawing poverty line at Rs 115.43 for rural areas and Rs 165.58 for urban areas in 1987-88. Table 12.1 shows these estimates of incidence of poverty.

These estimates revealed that the proportion of rural population lying below the poverty line declined from 54.1 per cent in 1972-73 to 51.2 per cent in 1977-78 and then it again declined to 40.1 per cent in 1983-84 and 28.37 per cent in 1987-88.

Again the proportion of urban population lying below the poverty line declined from 41.2 per cent in 1972-73 to 38.2 per cent in 1977-78 and then again declined to 28.1 per cent in 1983-84 and then to 16.82 per cent in 1987-88.

Accordingly, these estimates revealed that the percentage of total population below the poverty line declined from 51.5 per cent in 1972-73 to 37.4 per cent in 1983- 84 and then to 25.49 per cent in 1987-88.

Planning Commission Revised estimates of Poverty (1993-94) :

The Planning Commission estimates the incidence of poverty in rural and urban areas of the country using the quinquennial survey data on household consumption expenditure released by the National Sample Survey Organisation (NSSO), coupled with the poverty lines as set out in the Report of the Task Force on Projection of Minimum needs and Effective Consumption Demand, constituted by the Planning Commission in 1979. In view of the recent revisions in the aggregate private consumption expenditure made by CSO and the population data derived from census results, the poverty estimates for 1987-88 have been revised.

Expert Group Estimates, July 1993 :

In view of the methodological issues raised in respect of the estimates on poverty and also poverty alleviation being an objective of economic and social development, the Planning Commission constituted an Expert Group on September 1989 for considering methodology and computational aspects of estimation of proportion and number of poor persons in the country.

While retaining the concept of poverty line as recommended by the Task Force, the Expert Group suggested certain basic changes in the price deflator to update the poverty line for its application in later years. This group suggested use of state specific price indices which can reflect the changes in cost of consumption basket of the people around the poverty line.

It also relied exclusively on the National Sample Survey (NSS) data on consumption expenditure to assess the incidence of poverty without adjusting the NSS Consumption that is obtained from macro-aggregates of the national accounts.

The Expert Group has estimated the percentage of population living below the poverty line under the new estimating pattern, as given in Table 12.2:

The report of the Expert Group which was submitted in July 1993, was subsequently released by the Planning Commission and its recommendations are under consideration. The new estimate has also confirmed a steady decline in proportion of population below the poverty line.

Together with the overall economic growth, the anti-poverty and employment generation programmes have helped in reducing the incidence of poverty over the long run.

Accordingly, the poverty ratio in rural areas declined from 56.4 per cent in 1973- 74 to 45.7 per cent in 1983 and then to 37.3 per cent in 1993-94. Again the poverty ratio in urban areas also declined from 49.0 per cent in 1973-74 to 40.8 per cent in 1983 and then to 32.4 per cent in 1993-94.

Moreover, the poverty ratio of the country as a whole has also declined from 54.9 per cent in 1973-74 to 44.5 per cent in 1983, 38.9 per cent in 1987-88 and then to 36.0 per cent in 1993-94 and finally to 26.1 per cent in 1999-2000 and 24.4 per cent in 2000-01.

In numerical terms, the number of persons living below the poverty line in India increased from 321 million in 1973-74 to 329 million in 1977-78 and then gradually declined to 307 million in 1987-88 and then again increased to 320 million in 1993-94 and then to 260 million in 1999-2000.

Planning Commission estimates on the basis of NSSO Data, 1999-2000 :

Recent estimate of poverty was made by the Planning Commission on the basis of NSSO 55th round data for the year 1999-2000. Some of the key results of the 55th Round of the Household Consumer Expenditure Survey of the National Sample Survey Organisation (NSSO) covering the period July 1999 to June 2000, have now become available showing a very significant decline in poverty.

Accordingly, the rural poverty has declined to 27.1 per cent based on 30-day recall and 24.0 per cent on a 7-day recall methodology. Again the poverty ratio in urban areas has also declined to 23.6 per cent based on 30-day recall and 21.6 per cent on 7-day recall methodology.

Moreover, the poverty ratio of the country as a whole has declined to 26.1 per cent based on 30-day and 23.3 per cent on 7-day recall methodology. These two sets of estimates may not be strictly comparable to the earlier estimates of poverty. Nonetheless, they provide clear evidence indicating a substantial decline in the overall poverty ratio in the country during the 1990s.

As per the recent estimate based on NSSO data, it is observed that in 1999-2000 the country has 260 million population living below the poverty line (BPL); out of which 193 million live in rural areas and 67 million live in urban areas.

Thus the Planning Commission estimate of poverty on the basis of the NSSO 1999-2000 data is the latest official estimates of poverty and non official estimates on poverty are available beyond this data. Economic Surveys for 2003-04 and 2004-05, on the basis of the result of 55th round of NSSO, had indicated that there has been an impressive decline in the incidence of poverty in the 1990s.

However, the extent of the actual decline in the proportion below the poverty line (BPL) between 1993-99 and 1999-2000 has been a subject of an intense debate by academicians because of the change in methodology for collection of basic data in 1999-2000 and possible non-comparability with earlier rounds of the consumer expenditure surveys.

Planning Commission’s Estimates on the basis of NSSO Data, 2004-05 :

Next official estimates of poverty incidence is based on the NSSO 61st round of large-scale sample survey in 2004-05. On the basis of the quinquennial large sample surveys on household consumer expenditure conducted by the National Sample Survey Organisation (NSSO), incidence of poverty is estimated by the Planning Commission for the year 2004-05.

Table 12.2(a) reveals this poverty estimate.

Table 12.2(a) reveals that the Uniform Recall Period (URP) consumption distribution data of NSS 61st Round yields a poverty ratio of 28.3 per cent in rural areas, 25.7 per cent in urban areas and 27.5 per cent for the country as a whole in 2004-05.

The corresponding poverty ratios calculated from the Mixed Recall Period (MRP) consumption distribution data are 21.8 per cent for rural areas, 21.7 per cent for urban areas and 21.8 for the country as a whole.

While the former consumption data (URP) uses 30-day recall/reference period for all items of consumption, the latter (MRP) uses 365-day recall/reference period for five infrequently purchased non-food items, namely, clothing, footwear, durable goods, education and institutional medical expenses and 30-day recall/reference period for remaining items.

The percentage of poor in 2004-05 estimated from URP consumption distribution of NSS 61st Round of consumer expenditure data (27.5 per cent) are comparable with the poverty estimates of 1993-94 (50th Round) which was 36 per cent for the country as a Whole, The percentage of poor in 2004-95 estimated from MRP consumption expenditure of NSS 61st Round of consumer expenditure data (21.8 per cent) are roughly comparable with the poverty estimates of 1999- 2000 (55th Round) which was 26.1 per cent for the country as a whole.

Average per capita consumption expenditure for rural and urban population as per 61st Round (2004- 05) is Rs 558.78 and Rs 1,052.36 respectively. NSSO Data also reveals that rural population on an average spends about 55 per cent of its consumption on food and remaining 45 per cent on non-food items.

Estimates of Poverty Ratio by Tendulkar Committee, 2004-05 :

The above estimate of poverty ratio was prepared by an Expert Group under the Chairmanship of Professor Suresh D. Tendulkar Constituted by the Planning Commission in December 2005, which submitted its report in December 2009. The recomputed poverty estimates for the years 1993-94 and 2004-05 as recommended by the Tendulkar Committee have been accepted by the Planning Commission.

As per the Tendulkar Committee Report, the national poverty line at 2004-05 prices was a monthly per capita consumption expenditure of Rs 446.68 for rural and Rs 578.80 for urban areas in 2004-05. The above estimates of poverty line which refer to the national average, vary from state to state because of price differentials.

It its report, the Tendulkar Committee mentioned that the proposed poverty lines have been validated by checking the adequacy of actual private expenditure per capita near the poverty lines on food, education and health by comparing them with normative expenditures consistent with nutritional, educational and health outcomes.

In order to have a two point comparison of changes in head count ratio, the Expert Group has again re-estimated poverty ratio for 1993-94. The head count poverty ratio for 1993-94 and 2004-05 as released earlier by the Planning Commission on the basis of Lakdawala Methodology and also by using by the Tendulkar Methodology are shown in Table 12.2.(b).

It is observed that as per Lakdawala methodology, the poverty ratio in general in India declined from 36.0 per cent in 1993-94 to 27.5 per cent in 2004-05 showing poverty reduction to the extent of 8.5 per cent.

But as per Tendulkar methodology, the same poverty ratio declined from 45.3 per cent in 1993-94 to 37.2 per cent in 2004-05 showing poverty reduction of 8.1 per cent. However, in respect of both these two methodologies, the extent of poverty reduction is not much different.

Table 12.2(c) shows comparative estimate of the poverty incidence and growth rates in India and some other selected Asian countries.

Table 12.2(c) reveals that although the reduction of the overall poverty ratio in India from 54.9 per cent to 36 per cent during a period of three decades (1973-93) is quite significant, but the performance of poverty alleviation or reduction has been weak as compared to that of some East Asian countries.

While the poverty ratio in India has declined from 54.9 per cent in 1975 to -36.0 per cent in 1995, the same ratio has declined from 59.5 per cent to 22.2 per cent in China, 64.3 per cent to 11.4 per cent in Indonesia, 23.0 per cent to 5.0 per cent in Korea, 17.4 per cent to 4.3 per cent in Malaysia and 8.1 per cent to 0.9 per cent in Thailand during the same period.

It may be observed that the success of some East Asian countries (like China and Indonesia) lies in faster average (GDP) economic growth being 11.1 per cent in China, 6.6 per cent in Indonesia and 8.7 per cent in Korea during 1980-95 period as compared to that of only 5.6 per cent in India.

Moreover, the annual reduction in poverty ratio during the period 1975-95 was 0.9 percentage point in India as compared to that of 1.9 percentage point in China, 2.6 percentage point in Indonesia and 0.7 percentage point in Malaysia.

Planning Commission’s Estimates on the basis of NSSO Data, 2009-10 :

The Planning Commission has updated the poverty lines and poverty ratios for the year 2009-10 as per the recommendations of the Tendulkar Committee using NSS 66th Round (2009-10) data from Household Consumer Expenditure Survey. It has estimated the poverty lines at all India level as an monthly per capita consumption expenditure (MPCE) of Rs 673 for rural areas and Rs 860 for urban areas in 2009-10.

Based on these cut-offs, the percentage of people living below the poverty line in the country has declined from 37.2 per cent in 2004-05 to 29.8 per cent in 2009-10. Even in absolute terms, the number of poor people has fallen by 52.4 million during this period.

Of this 48.1 million are rural poor and 4.3 million are urban poor. Accordingly, the total number of poor in the country has been estimated at 34.47 crore in 2009-10 as against 40.72 crore in 2004-05.

The all India head count ratio (HCR) has declined by 7.3 percentage points from 37.2 per cent in 2004- 05 to 29.8 per cent in 2009-10, with rural poverty declining by 8 percentage points from 41.8 per cent to 33.8 per cent and urban poverty declining by 4.8 percentage point from 25.7 per cent to 20.9 per cent.

The sharp decline in poverty of over 10 percentage points was witnessed in Himachal Pradesh, Madhya Pradesh, Maharashtra, Orissa, Sikkim, Tamil Nadu, Karnataka and Uttarakhand. It is also revealed from the report that the poverty has increased in North-Eastern States of Assam, Meghalaya, Manipur, Mizoram, and Nagaland.

Some of the bigger states such as Bihar, Chhattisgarh and Uttar Pradesh have shown only marginal decline in poverty ratio, particularly in rural areas. These estimates of poverty made by the Planning Commission are based on methodology recommended by the Tendulkar Committee, which includes spending on health and education, besides calorie intake.

It is also observed that poverty has declined on an average by 1,5 percentage points per year between 2004-05 to 2009-10. The annual averages rate of decline during the period 2004-05 to 2009-10 is twice the rate of decline during the period 1993-94 to 2004-05.

Planning Commission’s revised Estimates of Poverty Ratio on the basis of NSSO data, 2011-12:

The Planning Commission’s revised estimates of poverty ratio based on NSSO data, 2011-12 can be seen from the following Table 12.2(d).

The Planning Commission has revised the estimates of poverty lines and poverty ratios for the year 2011-12 following the Tendulkar methodology using the NSS 68th Round (2011-12) data from Household consumer expenditure Survey.

Accordingly, the poverty line at all India level for 2011-12 is estimated at monthly per capita consumption expenditure (MPCE) of 7 816 (Rs 27 per day) for rural areas and Rs 1000 (Rs 33 per day) for urban areas. Based on these cut-offs the proportion of people living below the poverty line in the country has declined from 37.2 per cent in 2004-05 to 21.9 per cent in 2011-12.

In absolute terms there were 26.93 crore people below the poverty line in 2011-12 as compared to 40.72 crore in 2004-05.

However, this current estimate of poverty has triggered controversy among different people. Some groups argue that the poverty ratio of 2011-12 is too low and far from reality. However, the impact of economic growth, agricultural and industrial development and effect of rural uplift and rural employment schemes cannot be totally denied.

Thus it is observed that over a span of seven years the incidence of poverty declined from 37.2 per cent to 21.9 per cent in 2011-12 for the country as a whole, with a sharper decline in the number of rural poor. Table 12.2 (e) shows alternative estimates of poverty in India made by different experts and important bodies and also the criteria for determining such poverty line in the country.

Essay # 4. Recent Poverty Debate in India:

In India, recently, a serious poverty debate is going on which is related to the concept and the measurement of poverty. The current debate centres on the estimation of price deflators, reference period for survey and also for determining the basis of poverty line.

Growth of per capita income over 3 per cent per annual during 1990’s and the increasing divergence in the per capita expenditure reflected in NSSO schedules and the national accounts systems have been cited to point out that the NSSO consumer expenditure surveys has under estimated consumption expenditure.

Accordingly, the incidence of poverty is considered to be overestimated. But, on the other hand, serious debate continued on the incidence of poverty after the release of official estimates of poverty by the Planning Commission for 1999-2000. In this report it is found that between 1993- 94 and 1999-2000, overall poverty in India declined by 10 per cent and in rural areas by more than 10 per cent.

On this matter many scholars have questioned about the comparability of the 1993-94 and 1999-2000 estimates due to the changes in the method of data collection. They observed that the incidence of poverty has been under estimated through over-reporting of expenditure by the surveyed households due to changes in the survey design.

Two subsequent studies made by Sundaram and Tendulkar (2003) and Sen and Himangshu (2003) argued that such decline in the incidence of poverty between 1993-94 and 1999-2000 would be in the range 7 per cent to 4.5 per cent respectively as compared to that to 10 per cent estimated officially earlier.

Essay # 5. Poverty Differential among Different States in India :

A high degree of poverty differentials among the various states of India has been continuing from the very beginning. Although various measures were undertaken since the inception of planning for the eradication of poverty throughout the country and some degree of success has also been attained in reducing the poverty ratio in general among all the states but the high degree of poverty differentials still persist among different states of the country.

State-wise poverty ratios have witnessed a secular decline from 1973-74 to 2004-05. The poverty is estimated from the state-specific poverty lines and the distribution of persons by expenditure groups obtained from the NSS data on consumption expenditure.

It is observed that though poverty has declined at the macro level, rural-urban and inter-state disparities at the poverty ratio are clearly visible. The state specific poverty ratios at the national and state levels and the poverty differentials among different states from 1973-74 to 2004-05 can be seen from Table 12.3.

Table 12.3 reveals the poverty ratio of different states. It is observed that the poverty ratio both at the rural and urban level in different states has declined considerably but still a high degree of poverty differentials still exist between backward and relatively developed states of the country leading to mounting regional disparities.

The rural poverty ratio of relatively backward states in 1973-74 which were 67.28 per cent in Orissa, 62.99 per cent in Bihar, 62.66 per cent in Madhya Pradesh and 52.67 per cent in Assam, gradually declined to 60.80 per cent in Orissa, 55.70 per cent in Bihar, 53.60 per cent in Madhya Pradesh and 36.40 per cent in Assam in 2004-05.

But the present poverty ratios of backward states are still very high as compared to that of relatively developed states like Punjab (22.1 per cent), Gujarat (39.10 per cent) and Kerala (20.2 per cent).

Thus, the rural poverty ratio is still relatively high in Orissa, Bihar and North Eastern states. In Orissa, Madhya Pradesh, Bihar and Uttar Pradesh, the urban poverty ratios were in the range of 35.1 to 43.7 per cent in 2004-2005.

But the combined poverty ratio of the backward states during the period 1973-74 to 2004-05 gradually declined from 66.18 per cent to 57.2 per cent in Orissa, 61.91 per cent to 54.4 per cent in Bihar, 61.78 per cent to 48.6 per cent in Madhya Pradesh and 51.21 per cent to 34.4 per cent in Assam. But the performance of few other states in this regard has been found quite satisfactory.

The combined poverty ratio of states like Kerala, West Bengal, Tamil Nadu and Uttar Pradesh which were 59.79, 63.43, 54.94 and 57.07 in 1973-74 respectively, gradually declined substantially to 19.70, 34.3, 28.9 and 40.9 respectively.

Thus, there has been a significant reduction in poverty ratio during the period in Kerala, Jammu and Kashmir, Goa, Lakshadweep, Delhi, Andhra Pradesh, Gujarat, Tamil Nadu, Karnataka, West Bengal and Andaman and Nicobar Islands.

Thus, while some states such as Punjab and Haryana have succeeded in reducing poverty by following the path of modernisation of agriculture and high agricultural growth, others have focused on particular areas of development, e.g., Kerala has focused on human resource development, West Bengal on vigorous implementation of land reform measures and empowerment of Panchayats and Andhra Pradesh on direct public intervention in the form of public distribution of food grains.

The Approach Paper of the Tenth Plan also recorded the projections of poverty level at the end of Tenth Plan prepared by the plan panel. As per this projection, it is found that if macro-economic and sectoral projections for the Tenth Plan (2002-07) are achieved, the poverty ratio in India should fall to 19.2 per cent by the end of plan period.

While the urban poverty ratio is expected to drop to 14.6 per cent, rural poverty ratio is also projected to fall to 21.0 per cent. The poverty projections further show that 90 per cent of the poor will be concentrated in eight states, such as Bihar, Madhya Pradesh, Orissa, Uttar Pradesh, West Bengal, Assam, Maharashtra and Rajasthan.

All India GDP growth targets of more than 8.0 per cent accompanied by high agricultural growth in Haryana, Himachal Pradesh, Goa, Gujarat, Punjab and Delhi should make the poverty levels negligible in these states. Keeping in mind the migration factor from relatively poorer states to the prosperous ones, it has projected a poverty level of 2.0 per cent in these states by 2007.

Poverty Differentials of Different States as per Planning Commission Estimate on the Basis of NSSO Data, 1999-2000 and 2004-05 :

As per the estimate made by the Planning Commission on the basis of NSSO data, 1999-2000, the poverty differentials among the different states of the country still persist at a wide level.

Orissa has the dubious distinction of having the maximum percentage of BPL population (47.15 per cent) while the Jammu and Kashmir has the least number of such population, i.e., 3.48 per cent. Besides Orissa, the only Other State with over 40 per cent BPL population is Bihar, in which 42.6 per cent of the total population is living below the poverty line (BPL).

The states with more than 30 per cent BPL population are Uttar Pradesh (31.15 per cent), Arunachal Pradesh (33.47 per cent), Assam (36.09 per cent), Madhya Pradesh (37.43 per cent), Nagaland (32.67 per cent), Sikkim (36.65 per cent) and Tripura (34.44 per cent).

Other states with below 10 per cent BPL population are Goa (4.4 per cent), Jammu and Kashmir (3.48 per cent), Himachal Pradesh (7.63 per cent), Haryana (8.74 per cent), Punjab (6.16 per cent), Chandigarh (5.75 per cent), Daman and Diu (4.44 per cent) and Delhi (8.23 per cent).

However in absolute terms, Uttar Pradesh has the highest number of those living below the poverty line at 52.98 million while Daman and Diu has just 6,000 BPL population.

Among those states with more than 10 million BPL population include—Andhra Pradesh (11.9 million or 15.77 per cent), Karnataka (10.44 per cent); Maharashtra (22.79 million or 25.02 per cent), Orissa (16.9 million or 47.15 per cent), Tamil Nadu (13.04 million or 21.12 per cent) and West Bengal (21.34 million or 27.02 per cent).

Thus wide inter-state disparities are visible in the poverty ratios between rural and urban areas as also in the rates of decline of poverty. Among major states like Orissa, Bihar, West Bengal and Tamil Nadu, more than 50 per cent of their population lived below the poverty line in 1983.

By 1999-2000, while Tamil Nadu and West Bengal had reduced their poverty ratio by nearly half, Orissa and Bihar continued to be the two poorest states with poverty ratios of 47 and 43 per cent respectively. In 1999-2000, 20 states and Union Territories had poverty ratios which were less than the national average.

Among other states, Jammu and Kashmir, Haryana, Gujarat, Punjab, Andhra Pradesh, Maharashtra and Karnataka also succeeded significantly in reducing the incidence of poverty.

Poverty Differentials of Different States as per Planning Commission Estimate on the Basis of NSSO Data, 2004-05:

As per the recent estimate made by the Planning Commission on the basis of NSSO data 2004-05, the poverty differentials among different states of the country still persists at a wide leve.

Among the states, orissa has again the dubious distinction of having maximum percentage of BPL population (52.2 per cent), followed by Bihar (54.4 per cent), which Kerela has the lowest poverty ratio of 19.7 per cent in 2004-05.

The states with more than 30 per cent BPL population as 2004-05 estimates are Madhya Pradesh (48.6 per cent), Uttar Pradesh (40.9 per cent), Maharashtra (38.1 per cent), Assam and Rajasthan (34.4 per cent), West Bengal (34.3 per cent), Karnataka (33.4 per cent) and Gujarat (31.8 per cent).

The states with below 30 per cent BPL population includes-Tamil Nadu (28.9 per cent) , Himachal Pradesh (24.1 per cent), Haryana (22.9 per cent), Andhra Pradesh (29.9 per cent), Punjab (20.9 per cent), and Kerela 19.7 per cent.

Thus there remains wide poverty differentials among the different states of India as per 2004-05 estimates.

This situation underscores the need for rapid growth of output and employment coupled with strengthening of the special programmes of poverty alleviation and employment generation. Thus this problem of poverty has to be dealt in the framework of the strategy of development laying emphasis on those sectors whose growth makes a significant impact on the income level of the underemployed.

Thus the findings of the study made by Minhas, Dandekar and Rath, Bardhan and others revealed that most of the people living below the poverty line belonging to landless agricultural labour households with small holdings, land-less non-agricultural rural labour households and small land operators with les than 1 hectare of land holdings.

Accordingly, Danekar and Rath observed tha, “The urban poor are only an overflow of the rural p[oor into the urban area. Fundamentally, they belong to the same class as the rural poor. However, as they live long enough in urban poverty, they acquire characteristics of their own. Little is known of their and labour in the growing cities.”

Thus the problem of poverty in India is quite chronic. Inspite of 4 decardes of planning, the problem of poverty is still persisting in the country.

Thus Amartya Sen rightly observed, “The poor is not an economic class, nor convenient category to use for analysing social and economic movements. Poverty is the common outcome of variety of desperate economic circumstances and a policy to tackle poverty must, of necessity, go beyond the concept of poverty. The need of discrimination is essential.”……. “ It is not sufficient to know how many poor people there are, but how exactly poor they are.”

Essay # 6. Poverty Alleviation Programmes:

Although the problem of poverty has been persisting in India since the inception of planning but the serious programmes for the alleviation of poverty were introduced only in recent years. Poverty alleviation was accepted as one of the major objectives of planning since the Fifth Plan.

It is only during the 1970s the programmes like Small Farmer’s Development Agency (SFDA), Marginal Farmers and Agricultural Labourers Development Agency (MFAL), Drought Prone Areas Programme (DPAP), Crash Scheme for Rural Employment (CSRE) and Food for Work Programme (FWP) were introduced for benefitting the rural poor. Later on, the Integrated Rural Development Programme (IRDP) was introduced in 1978-79.

In order to provide wage employment to the rural poor, the National Rural Employment Programme (NREP) and the Rural Landless Employment Guarantee Programme (RLEGP) were introduced during the Sixth Plan. Later on, on April 1, 1989, NREP and RLEGP were merged into a single wage employment programme under Jawahar Rozgar Yojana (JRY).

IRDP is also being implemented by the Government since 1980 as a major instrument of its strategy to alleviate rural poverty. The objective of the programme is to assist poor families in developing skills and inputs to overcome their poverty. So far 41.3 million families have been assisted with a total investment of Rs 19,318 crore. The level of investment per family at the end of March 1993 was Rs 7,141.

Concurrent evaluation of IRDP carried out by the Ministry of Rural Areas and Employment reveals that as many as 16 per cent of families assisted under IRDP were able to cross the poverty line of Rs 6,400 during 1989. Again as per preliminary results of concurrent evaluation of IRDP carried out during September 1992 to February 1993, about 50 per cent of assisted families could cross the poverty line of Rs 6,400

During the Eighth Plan 18 million families were assisted under IRDP with plan provision of Rs 3,350 crore. At the end of March 1993, about 21 lakh families living below the poverty / line were given income generating assets with a mixture of credit and subsidy.

Moreover, providing skills to rural youth belonging to families below poverty line and also to enable them to take up self or wage employment, the Training of Rural Youth for self Employment (TRYSEM) was introduced in August 1979.

A total of 26.6 lakh youths and 11.3 lakh women so far have been trained under this scheme, out of which 15.6 lakh youths have been fully employed. In 1992-93 and 1993-94 about 2.8 lakh and 3.04 lakh youths respectively were trained under TRYSEM and under JRY, about 7,821 lakh and 10,237 lakh man-days of employment respectively were generated.

During the first four years of the Eighth Plan (1992-93 to 1995-96), total number of youths trained was 11.47 lakh as against its target of 13.18 lakh and total number of man-days of employment generated under JRY was 365.54 crore as against its target of 362.86 crore. Again during the first four years of the Eighth Plan, total number of IRDP families assisted was 89.13 lakh as against its target of 65.6 lakh.

Family Credit Plan (FCP) is also a useful device to ensure higher investment for a beneficiary family under IRDP to enable the family to cross the poverty line. Under IRDP, all families in rural areas below the poverty line are eligible for assistance.

In 1993-94, two new programmes, namely the Employment Assurance Schemes (EAS) and the Prime Minister’s Rozgar Yojana (PMRY) were introduced. The EAS is now implemented in 3,175 backward blocks in the country. It aims at providing 100 days of unskilled manual work up to two members of a family in the age group of 18 to 60 years normally residing in villages within the blocks covered under EAS.

It is a need based programme hence no target of employment generation has been fixed. Under EAS/SGRY, total man- days of employment generated in 1993-94 was 494.94 lakh, 4,165.3 lakh in 1998-99, 8,223 lakh in 2004- 2005. Under PMRY, total employment generated in 1993-94 was 0.45 lakh and in 1994-95 was 2.83 lakh, in 2003-2004 was 1.8 lakh as against the target of 3.00 lakh.

The Economic Survey, 2002-03 in this connection observed, “The success of anti-poverty strategy is reflected in the decline in the combined poverty ratio from 54.9 per cent in 1973-74 to 36.0 per cent in 1993- 94. The poverty ratio declined by nearly 10 percentage points in the 5 year period between 1993-94 to reach 26.1 per cent in 1999-2000. While tile proportion of poor in the rural areas declined from 56.4 per cent in 1973-74 to 27.1 per cent in 1999-00, the decline in urban areas has been from 49 per cent to 23.6 per cent during this period. In absolute terms, the number of poor declined to 260 million in 1999-00 with about 75 per cent of these being in the rural areas.”

National Social Assistance Programme (NSAP) :

The National Social Assistance Programme (NSAP) was announced on 15th August 1995 for providing succor to the aged and families below the poverty line. The NSAP for the poor encompasses old age pension, family benefit in case of the death of the bread-winner and maternity benefits.

The NSAP is a centrally sponsored programme with 100 per cent central funding and it is intended to ensure that social protection to the beneficiaries throughout the country is uniformly available without interruption.

The NSAP consists of the following three components:

(a) National Old Age Pension Scheme (NOAPS):

Providing a pension of Rs 75 per month to destitute and to person above 65 years of age living below the poverty line. This was expected to benefit 54 lakh people. In 2006-07, Rs 2,800 crore was allocated for the scheme.

(b) National Family Benefit Scheme (NFBS):

This scheme makes provision for lump-sum survivor benefit on the death of the primary bread winner in poor households of Rs 10,000 in the case of accidental death and Rs 5,000 in the case of death from unnatural causes. This scheme was expected to benefit 4.5 lakh families a year.

(c) National Maternity Benefit Scheme (NMBS):

This scheme provides maternity benefit of Rs 300 for expectant mothers per pregnancy up to the first two live births. This scheme was expected to benefit 46 lakh women each year. This programme involves an expenditure of Rs 867 crore in full year. An outlay of Rs 515 crore was provided during 1995-96 and a sum of Rs 725 crore was provided for the above three components of NSAP in 1999-2000 budget.

Targets of Tenth Plan :

Apart from an indicative target of an 8 per cent average GDP growth rate, specific monitor able targets of key indicators have been finalised for the Tenth Plan (2002-07) and beyond. One of these pertains to the reduction in poverty ratio by five percentage points by 2007 by 15 percentage points by 2012.

The poverty reduction target set by the Planning Commission for the Tenth Five Year Plan aimed at achieving a poverty ratio of 19.3 per cent for the country as a whole by 2007, 21.1 per cent for the rural and 15.1 per cent for the urban areas.

Critical Evaluation of Poverty Alleviation Programmes :

But all- these poverty alleviation programmes did not yield the desired result due to some of its shortcomings. These were:

(a) Allocation of funds and determination of targets were made without considering the size of the population and incidence of poverty leading to wrong identification of families;

(b) The selection of schemes was also not done in a rational manner;

(c) Poverty alleviation programmes failed to recognise importance of increased flow of social inputs through nutrition, family welfare, social security;

(d) This programme neglected the disabled, sick and socially handicapped persons;

(e) The present approach was almost blind about the existence of secondary poverty;

(f) The present poverty line crossing criterion for evaluation the income changes occurring below poverty line;

(g) The poverty alleviation programmes ignored the consequences of the earning activities of the poor people in terms of occupational health hazards and adverse ecological factors.

The Government is seriously reviewing its rural anti-poverty programmes in the light of lapses noticed and in the context of formulating the current five year plan. The Planning Commission has constituted a steering Group and six other groups to look into “poverty alleviation and area development programmes in rural India.”

So far, scrutiny of the working of the two major programmes—Integrated Rural Development programme (IRDP) and Jawahar Rozgar Yojana (JRY) has thrown up some major areas of concern. While on the positive side, under the IRDP scheme, beneficiaries were selectively chosen for assistance so as not to leave out the really needy.

On the flip side, it has been observed that a second dose of assistance given to beneficiaries was very low. Only 2.38 per cent of the total old beneficiaries were given a second dose, while new beneficiaries received less than 2.16 per cent assistance, implying enough attention has not been paid to providing subsequent doses of assistance to eligible families.

Moreover, the poverty alleviation schemes being administered by the banks must be evaluated and reviewed to ensure that benefits reach the intended target group. There is an urgent need to restructure the existing poverty alleviation schemes for focused and effective implementation as a large number of schemes were being implemented which resulted in “loss of focus”.

There is the need to compress the total number of schemes into two categories, i.e., those which generate employment and those which create assets for the benefit of the community.

Although the poverty alleviation programmes have four major objectives, i.e., generation of employment, creation of assets for community benefit, improvement of productivity and raising the general living standards of the people below the poverty line, but the thrust of all these schemes should be to create assets which directly benefit a large number of people.

Measures to be Adopted :

Success of poverty alleviation programmes not only depends on launching of wage employment and self-employment programmes but it also depends on the improvement of land relations in favour of the cultivators and redistribution of income in favour of the rural poor.

Thus the Approach paper of the Fifth Plan rightly observed that “Employment is the surest way to enable the vast numbers, living below the poverty level, to rise above it. Conventional fiscal measures for redistribution of income cannot by themselves make a significant impact on the problem.”

Thus in order to remove poverty steps must also be taken in the following directions:

(i) To impose ceiling on land and redistribution of ceiling—surplus land among the landless, small and marginal farmers.

(ii) To make provision for proper security of tenure for the tenant cultivators and share-croppers.

(iii) To provide employment to huge number of landless unemployed workers by developing agro-based small scale industries in the wage goods sector.

(iv) To take necessary steps for the reclamation of land and to arrange irrigation facilities for dry lands.

(v) To provide minimum amenities of life in rural areas and also in urban slum areas through Minimum Needs Programme.

(vi) To develop growth centres in order to run various projects like animal husbandry, dairy, fishing, poultry farming, farm forestry etc.

(vii) To ensure that rural development programmes like IRDP, JRY are redressed properly so that they can generate sufficient wage employment and self-employment opportunities to the rural poor. But the present contract system followed for the implementation of these programmes should be stopped and proper institutional framework should be provided so that rural workers can engage themselves with much vigour and responsibility.

Professor Sukhamoy Chakraborty rightly observed that “The solution to the problem of rural poverty will require that small farmers must also be given access to land-augmenting innovation along with a programme of well-conceived public works………………….. many of the specific tasks will need to be done on a decentralised basis.”

In order to implement these measures effectively, it will require a strong political will on the part of the government and active participation of the people with growing consciousness about their rights and responsibilities.

It can be observed further that India must sustain eight (8) per cent growth rate and aim for attaining nine (9) per cent growth rate as otherwise it would not be able to eradicate poverty.

The World Bank report entitled, “India : Achievements and Challenges in Reducing Poverty”, recently observed that the poverty level in India could go down from the current level of about 35 per cent to just 6.3 per cent by the year 2005 if the economy maintains its growth and income distribution levels.

The report further observed, “this would be a tremendous achievement for a country which is home to the largest concentration of poor in the world.”

The Bank noted that Indian economy has grown on an average by six per cent to seven per cent over the past few years. A senior World Bank economist Mr. Zoubida Allaoua, the principal author of the report said, “India has made substantial gains against widespread deprivation over the past 50 years.”

The Bank opined that the Indian Government should push for more growth so as to eradicate poverty within the least possible time.

Prime Minister’s Economic Advisory Council Chairman Mr. C. Rangarajan, while delivering a foundation day lecture at centre for Economic and Social Studies on 22nd February, 2014 observed that pro-poor policies by the government must be aimed at growth in the long run and also ensure flow of investments in the sectors working for poor.

Mr. Rangarajan also advocated public-private partnership model for delivery of social services such as health and education. He further observed that the design of policies has, therefore, to perform delicate balancing act. The pro-poor policies are necessary as they are to widen the opportunities and capabilities of the poor, must be so fashioned as to promote growth in the long run.

Pro-Poor policies should include not only income transfers which by their nature have to be limited, but also flow of investment to sectors and areas where poor work and live. Rural development including agriculture growth thus assumes major importance.

On the delivery of social services, he further argued that the delivery channel need not necessarily be through government administrative mechanism.

“Public-private partnerships in the delivery of these services need to be explored. Which taking advantage of superior administrative efficiency of private institutions, the larger public goals should not be sacrificed. Public-private partnership mode of delivery can thus supplement the direct delivery of services through government institutions.”

Such a model has proved to be a success in India in the case of AIDS programme where non-governmental organisations have played an extremely important role. Thus, one should try to realise seriously that social development and economic growth are not necessarily the same and thus different approaches need to be adopted for such programmes.

Essay # 7. Economic Reforms and Poverty Eradication Programme:

Alleviation of poverty has been considered as an important element in the economic policy of the country since its inception.

To meet the objective of poverty alleviation of a part of our adjustment process under economic reforms, the Government has allocated a higher amount of outlays on elementary education, rural drinking water supply assistance to small and marginal farmers, programmes for the welfare of scheduled castes and scheduled tribes and other weaker sections of the society, programme for women and children and also on infrastructure and employment generation projects.

Effective implementation of grass-root level development programmes requires designing of alternative strategies to empower people to help themselves. The, then Finance Minister, Dr. Manmohan Singh was of the view that mere increasing of expenditure on social sectors and rural development, as has been done in the Eighth Plan, was not sufficient to eradicate poverty.

Designing of alternative strategies was necessary since economic reforms and the government efforts to remove poverty are primarily based on self-help.

In recent times, some experts as well as voluntary agencies have expressed concern that Government’s pre-occupation with economic growth may hamper social welfare, including the health sector. But there is need for better appreciation of this alternative approach on this issue.

Dr. Singh during his address to various forums, internationally and within the country, had himself stated that there were several areas of concern about effective implementation of grassroots development programmes. These involved active participation of the people in the design and implementation of rural development schemes.

Dr. Singh observed recently, “People at all times have to beat the centre of our concern and when we talk about people, our priority has to be the poorest among them. When we talk of encouraging private investment, we are under no illusion that the private entrepreneurs would go to the remote, far-flung or the poorest areas of our country to build schools, hospitals, roads or build drinking water facilities. What we are doing is to throw open certain sectors to private entrepreneurship so that the sources of the State that are released may be diverted to meeting the more basic human needs of the people.”

‘The emphasis is to use market forces where they can be productive enough to yield better results. At the same time, strengthening of the role of the State is sought in those areas where market forces cannot be relied upon to achieve social and economic objectives.

In the medium term, a high growth rate of six to seven per cent is needed to create enough job opportunities for all the new entrants to the labour force. Resources required for meeting the needs of the poorest and improving outlays on poverty alleviation can be mobilised only when the required growth momentum has been built up.

But the Government cannot depend on growth itself to trickle down speedily to the poor. Hence, there is need for more direct attack on the problem of mass poverty.

First and foremost, it is sought to make the whole growth process more labour-intensive. Expansion of exports which are labour-intensive, relies on the country’s endowment of skills and natural resources, will open up new employment opportunities.

Leading French economist, Mr. Guy Sorman, while delivering a lecture on “Development and civilization: is economic liberalization the right solution for India?” observed recently (February, 1995) that liberalization must be accompanied by policies to remove poverty for it to be successful in India.

He said, “Liberalization is fine but is not enough” …………… “Liberalization process would take years to percolate down to the grass roots and people would have not have patience to wait that long.”

He further said that unless the Government spent its surplus on redistribution of resources, including public distribution, drinking water, basic education and health care, the whole process could go away. Of late, there has been wide ranging controversy about the impact of economic reforms on the poor.

One set of experts are alleging that the reforms have accentuated destitution and widened disparities and others are maintaining that such negative situations, if any, are purely coincidental and having little correlation with the new policy measures.

This sort of controversy was sparked off when a recent study of economic reforms and their impact on the poor people revealed that rural poverty in India rose sharply in recent years. The study conducted by Prof. S.P. Gupta revealed that the population living below the poverty line steadily rose from 39.0 per cent in 1988- 89 to 40.69 per cent during July-December 1992.

Findings of Prof. Gupta’s study came as a great deal of embarrassment to the Government, Economic Survey (1995-96) continued to record the official figure of poverty ratio from 25.49 per cent in 1987-88 to 18.96 per cent in 1993-94. But the Planning Commission did not prepare the estimates of poverty on the basis of 47th and 48th rounds of N.S.S.

Findings of Prof. Gupta were also corroborated by two eminent economists, Prof. S.D. Tendulkar and Prof. L.R. Jain. Tendulkar and lain, in their study reported that rural poverty increased from per cm in July 1990-June 1991 to 42.06 per cent in July-December 1991 and then to 48.07 per cent during January- December 1992.

Moreover, the UNDP estimates of poverty also revealed that the percentage of population lying below the poverty line was 40 per cent in 1992. The above evidence on trends in rural poverty have added a new dimension to the debate on economic reform process in India.

While the critics argued that economic reforms have accentuated the marginalization of the poorer people in the rural areas, the proponents of economic reforms and new economic policy changes argued alternatively to defend the reforms.

For example, the critics pointed out that average monthly per capita consumption of cereals declined from 14.4 kgs in 1987-88 to 13.5 kg in 1992. Data available from Sample Registration System (SRS) were also cited to show that the crude death rate of population has started to go up in the early 1990s both in urban as well as in rural areas.

But the defenders of the new economic policy have utilised the NSS data on consumption of square meals. The percentage of rural households having two square meals a day increased from 88.3 per cent in 1990-91 to 92.3 per cent in 1992.

Accordingly, they argued that people were being fed better and this did not get reflected in the consumption of cereals as more and more people were switching over to the consumption of non-cereal food items to meet their caloric requirements.

Whatever may be argument in favour or against the impact of economic reforms on poverty, there is one point which is quite striking. During the 1980s, there was a consistent decline in the proportion of people living below the poverty line.

The official estimates showed that there was a considerable fall in the poverty ratio from 48.3 per cent in 1977-78 to 37.4 per cent in 1983-84 and 25.5 per cent in 1987-88. Again the expert Group’s corresponding figures depicted the poverty ratio at 51.8 per cent, 44.8 per cent and 39.3 per cent respectively during the same years.

Main point that arises here is that whether this regressive trend has any correlation with the ongoing economic reforms. In this connection, Tendulkar and Jain argued that the new economic policy changes have not directly contributed any increase in rural poverty, though they have admitted that there has been fiscal compression induced squeeze in anti-poverty spending which was directly related to reforms.

“In fact if one considers outlays under the IRDP, this decline from Rs 809.49 crore in 1990-91 to Rs 773.09 crore in 1991-92 and Rs 662.22 crore in 1992-93, as a result there was a sharp decline in the number of beneficiary families from 28.98 lakh to 25.37 lakh and 20.69 lakh over the same period.”

Considering this criticism, the outlay on IRDP was nearly doubled in 1993-94 to Rs 1,093 crore and thereby 25.39 lakh families were assisted by this programme. But in 1994-95 this programme could assist only 21.82 lakh families and during the first eight months of 1995-96, the number of assisted families under the IRDP was only 9.01 lakh families.

Another important point raised by Tendulkar and Jain is that there has been the possible erosion of purchasing power of the poor due to rising trend in the prices of food observed during 1990s.

Although the economic reform measures cannot be said to be solely responsible for such event but there are sufficient reasons to believe that strong linkages exist between the availability of food grains, PDS off take, food grains prices and poverty ratio. In spite of consistent rise in food grains production, most of this increased production has been channelized to fill up the buffer stock of the Government.

The stocks of food grains have not been offloaded from the PDS outlets as the issue prices have more or less similar to the open market prices. This like issue prices is mostly related to the government’s policy of raising the procurement prices frequently for compensating the farmers against cuts in fertilizer subsidy.

Although in the pre-reform period, the Government tried to bridge the widening gap between procurement price and issue price through allotment of food subsidies, but the present policy of adopting fiscal austerity also forces the government to reduce the gap through the like of issue prices.

Thus the fiscal compression- induced cuts in outlay for the social sector have indicated that economic reforms have started to exert adverse impact on poverty.

The Government has revamped programme for raising the incomes of the people living below the poverty line, particularly in rural areas and the public distribution system has been extended to the most backward block for supply of essential articles of mass consumption to provide a measure of protection to the poor against inflation.

The liberalisation programme has helped agriculture. Besides, as excessively high protection to industry comes down, the relative profitability of agriculture improved. Impediments to trade in farm products were removed. New incentives have given boost to farm exports, The rising trend in agro, horticulture, aquaculture and other exports has generated new employment opportunities in the rural sector.

Moreover, an adequate flow of institutional rural credit to agriculture is vital for the development of the rural sector and this flow at present is very low in relation to need. Thus considering the situation, several new schemes for social uplift and poverty alleviation were launched by the Government during the recent years of economic reforms.

These included:

(a) Employment Assurance Scheme for providing 100 days of unskilled manual labour to the rural poor, in the 2,475 backward blocks including those that are flood prone in the country;

(b) Prime Minister’s Rozgar Yojana aimed at providing employment to unemployed youth through the creation of micro-enterprises;

(c) National Social Assistance Programme which encompasses old age pension, family benefits in case of death of the bread earner and maternity benefits;

(d) Rural Group Life Insurance Scheme, with a subsidized premium;

(e) National Programme of Nutritional support to Primary education (also known as Mid-Day Meal scheme) aimed at providing a nutritious meal to children in primary school;

(f) Mahila Smridhi Yojana aimed to promote the saving habit among rural women; and

(g) Indira Mahila Yojana aimed at more effective empowerment of women.

Moreover, the nation-wide Public Distribution system for food grains and other essential commodities has since been strengthened, with the revamped PDS now operating in 1,775 backward blocks and expected to be extended to all 2446 blocks under the Employment Assurance Scheme.

The World Bank in its publication titled “IDA in action 1993-1996” observed in this connection that though there are still too many poor people in India, but the country has achieved “significant progress” in poverty eradication, “India’s performance in reducing poverty has been modest compared to some countries in east Asia, for example Indonesia and Thailand.”

Thus, to achieve success in the poverty eradication programmes along with the economic reforms introduced in the country, alternative strategies for empowering the people to help themselves are to be designed.

A mere increase in the amount of expenditure on social sectors and rural development will not be sufficient to eradicate poverty rather a change in strategy in the direction along with sincere and active participation of the people in the design and implementation of rural development schemes etc. are needed the most.

Essay # 8. World Bank’s New Perception of Poverty:

The World Development Report (WDR), 2000-2001 released by the World Bank on 14th September, 2000 in Washington provided a new perception to poverty with an agenda sensitive to the needs of attacking poverty by promoting opportunities, facilitating empowerment and furthering security.

The report also mentioned about two new initiatives—a highly enhanced poor countries debt relief initiative and a comprehensive development framework.

The report sought to expand the understanding of poverty and its causes, while building on the Bank’s past strategy, drew heavily from the South-Asian experiences and Dr. Amartya Sen’s ideas of empowering the poor. The report admits that poverty remained a persisting dilemma and belied the improvement in human conditions with global wealth, global connections and technological capabilities.

The report observed that of the World’s 6 billion people, 2.8 billion lived on less than $ 2 a day and 1, 2 billion live on less than $ 1 a day with 44 per cent of the deprived ones living in South Asia alone.

Exacerbating the crisis of poverty is an overwhelming concentration of conflicts in poor countries, widening gaps between the rich and the poor countries leading to increasing worldwide income disparity and failure of reform programmes to deliver according to the expectations.

The scope of the report has substantially broadened perception of poverty, having drawn from the first- ever “Voices of the Poor” study based on experiences narrated by more than 60,000 poor women and men in 60 countries.

The experiences so gained dictated the World Development Report’s shift of emphasis in its approach to tackle poverty from the over-reaching emphasis of the 1950s on large investments in physical capital and infrastructure to the 1970s on health and education, the 1980s on economic management and the 1990s’ stress on governance and institutions.

The report proposed opening of opportunities by improving access to financial markets for the poor, raising resources and making public spending pro-poor by reducing military spending. Empowerment moved away from its perception of a solely economic process to an outcome of interaction of economic, social and political forces, and had to be achieved by making state institutions more responsive to the needs of people.

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• Poverty Essay

Poverty in India Essay

500+ words poverty in india essay.

Poverty is defined as a condition in which a person or family lacks the financial resources to afford a basic, minimum standard of living. Poor people don’t have adequate income; they can’t afford housing, health facilities and education which are essential for basic survival. So, poverty can be understood simply as a lack of money, or more broadly, barriers to everyday human life. With the help of this poverty essay, students will understand the meaning of poverty, the major causes of poverty and the efforts taken to eliminate poverty in India. So, students must go through this poverty in India essay in depth to get ideas on how to write effective essays and score high marks in exams.

What Causes Poverty?

There are various factors that are responsible for poverty. The major causes are unemployment, illiteracy, increasing population, and lack of proper education and training. As people are not able to find work for themselves, they are not able to earn their livelihood. Due to this, they lack access to basic education, health care, drinking water and sanitation. They are unable to feed their families and children. The other causes of poverty include war, natural disasters, political instability, etc. For example, World War II impacted many countries and they had to suffer from poverty for a long time. It took a lot of effort for such countries to recover their normal state. Similarly, natural disasters affect some areas so badly that poverty and hunger arise.

How is Poverty Measured in India?

The minimum expenditure (or income) required to purchase a basket of goods and services necessary to satisfy basic human needs is called the Poverty Line. Poverty can be measured in terms of the number of people living below this line. It is measured by the State Governments and information is provided by Below Poverty Line (BPL) censuses. Different countries use different measures for measuring poverty but the basic concept remains the same. The definition of the poverty line remains the same, i.e, consumption required for maintaining the minimum standard of living in a country.

Efforts to Eliminate Poverty

Earning income is the first step towards poverty eradication. Poverty can be eliminated by empowering people, and by giving them a good education that will prepare them to have a better career and future. With the help of education, people can get good jobs which allow them to earn a good living. In this way, they will be able to provide their children with a better life. People should be given easy access to transportation, information, communication, technologies, and other public facilities and services to help remove poverty.

The government has also taken several steps to eradicate poverty in India. It has launched various programmes and schemes such as the Five Years Programme, Prime Minister’s Rozgar Yojana, Mahatma Gandhi National Rural Employment Guarantee Act, Swarna Jayanti Shahari Rozgar Yojana, Pradhan Mantri Jan-Dhan Yojana, Deen Dayal Antyodaya Yojana etc. These programmes help to generate wage employment for the poor, unskilled people living in rural areas. The government also has social security programmes to help a few specific groups such as poor women, elder people, and widows. Apart from these government initiatives, citizens of India have to take an active part in eliminating poverty because it can’t be achieved by just a few people. It needs the support of everyone.

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Frequently asked Questions on Poverty in India Essay

How can poverty in india be abolished completely.

Abolishing poverty in India completely can be challenging. Steps should be taken to ensure equality in education so that everyone gets equal opportunities to find better livelihoods. Proper sanitation and water facility 3. Economic security and development

When was the first plan implemented for Poverty abolition?

The fifth five-year plan was first implemented in the year 1974-79 and since then the government has taken several steps and made many reservations to take this plan forward.

What is the relation between Poverty abolition and economic development?

Poverty abolition and economic development go hand in hand with each other and they are interlinked to each other. Eradication of poverty automatically improves the overall economic situation of a country.

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Poverty in India Essay for School Students in English [Easy Words]

January 13, 2021 by Sandeep

Essay on Poverty in India: People who are unable to satisfy basic necessities of life like food, water, shelter and education are considered unprivileged and face poverty. They may not be able to afford even a single square meal for their families. They are deprived of healthy and nutritious food. Population increase, migration to cities and rampant unemployment are some of the reasons for growing poverty in India. Increasing literacy and providing sustainable living conditions for the poor can curtail poverty.

Essay on Poverty in India 500 Words in English

We have provided Poverty in India Essay in English, suitable for class 6, 7, 8, 9 & 10. This essay is useful for UPSC aspirants too!

India is the world’s largest democracy and fastest-growing economy. It is one of the chief developing nations with an international level of influence. Yet, it is still viewed as a poor man’s country. This is because a large population of our country is still living below the poverty line. Even after almost seventy-two years of independence, poverty has plagued our nation. Our Union, as well as State governments, have collaborated with many private and public sector institutions. Together they have been able to roll out successful schemes to keep their citizens satisfied.

They are trying their best to provide us with our daily requirements. Yet this task has not helped remove poverty at all. The situation of poverty in India cannot be solved by judging it by its face value. It is essential to understand the nature of polity in India through a historical context. That way, we would be able to find reforms that can be implemented to curb this social evil.

Origin of Poverty in India

From the earliest kingdoms to the Mughal era, India has always had a rich history. Historians had given the Indian sub-continent the title ‘Golden Bird’. The vast reserves of gold and resources were the major indicators of a prospering economy during that era. Over time, invaders plundered these resources, and the economical health of this golden bird rapidly deteriorated. The most significant damage was done by the colonials. They entered our land as traders but slowly established their monopoly over various regions and services, and the entire sub-continent was then in their control.

Around the 19th and the 20th century, poverty bloomed under the British Raj. Industrial expansion and agricultural exports were increasing day by day. Farming was forced upon every labourer in India even when they were not farmers by profession. Though employment existed in the form of farming, farmers were being underpaid. While Nawabs and Maharajas enjoyed wealth and privileges, most of these workers could not even buy one proper meal a day. By 1943, poverty had reached a point where millions of people died of starvation, disease, and destitution (during the Bengal famine). Sir Antony MacDonnell, a civil servant of British India, quoted in the 1900’s “people died like flies”.

Poverty in Free India

Post-independence, India was divided into two different countries. This caused an inflow of refugees along the western border. This further aggravated the condition of poverty prevailing in the nation, according to B.S. Minhas, an economist, about 65% of the Indian population was living in poverty during the 1950’s. In the 1960’s, a new poverty line was set for the country to be at ₹ 20 a month. The estimated percentage of the population below this line was found to be 44%. The following decades noticed the common man’s frustration about the nation’s poor economic condition.

Slogans like ‘Garibi Hatao’ were being raised, and people were desperate to improve society’s condition. Over the years, many committees redefined the poverty line as per the changing dynamics of the Indian economy. At present, as per the World Bank estimates, 5.4% of our population is still suffering from extreme poverty. The figures have improved since the last century. Poverty can only be abolished if the developmental schemes keep evolving according to the country’s needs.

Causes of Poverty in India

Many factors directly contribute to the continual rise of poverty in India. To address and solve them, we need first to identify these factors. Here we have listed down some of these causes:

• Demography of a country plays a vital role in its state of poverty. Rural areas have larger families who owe to a lower per capita income. Ultimately, this results in a low standard of living.
• The increasing urban population has raised the rate of poverty in our country. The migration of rural people to urban areas has diluted out the wages. People eventually get closer to the poverty line.
• One of the major economic causes includes the surge in unemployment. The survey reports of 2015 say that 77% of Indian families lack a regular source of income.
• India is marked for its unequal distribution of assets. These assets and shares are disproportionately distributed among masses having different economic levels. 20 % of our population is reaping the seeds of 80 % of the total wealth.
• Maximum economic value cannot be attained when we have an abundance of the unskilled labour force in our country. Moreover, the caste system has caused marginalization and discrimination of specific portions of our society. Some places still exist where lower caste people are treated as untouchables.
• Besides, corruption is one of the leading causes of poverty. The poor are being neglected, whereas the wealthy can bribe their way to get their jobs done.

Effects of Poverty in India

The effects of poverty are far-fetched. One of its most disturbing effects includes the overall health conditions. Poor people are often malnourished. Children are devoid of a balanced and nutritious diet. Their poor immune system makes them prone to several ailments. Poverty makes them susceptible to anaemia, impaired vision, cardiac issues, etc. This is why 38 out of every 1000 infants die before turning 1.

India’s economy is correlated to its poverty rate. Poverty determines the possibility of rendering adequate amenities to our society’s underprivileged people. A poverty-ridden society is vulnerable to violence and crimes. Poor people indulge in criminal activities to feed themselves. Apart from that, homelessness is a typical outcome of poverty. This risks the safety of women and promotes child labour. It also increases terrorism.

Solutions for Eradicating Poverty in India

The following measures will help us fight against poverty in India:

• Increasing employment opportunities in India is a beneficial option.
• Farmers must be provided with proper agricultural resources. It will help them make a profit and will control their migration to urban regions (in search of jobs).
• Growing population must be checked. Schemes promoting birth control must be implemented.
• The Government must invest in the poverty-stricken states of India.
• Free education and healthcare units must be set up.
• Public Distribution System must be effective in its duty. People below the poverty line must be able to access free food and fresh water.
• Illiterate labourers must be provided with skill-based training so that they can make a better living out of it.

English that goes straight to the heart

Essay on Poverty in India

Poverty is the inability to secure the minimum human needs of food, clothing, housing, education, and health. When a person is unable to fulfil these basic needs, it leads to pain and distress.

Even after 74 years of Independence, India is still struggling with the problem of poverty. After going through this ‘ Essay on Poverty in India’ you will learn about the Features of Poverty in India, the Causes of Poverty in India, and Anti-poverty measures taken by the government of India to reduce the poverty in India.

Features of Poverty in India

Variations:  In the mid-seventies, the poverty ratio (which was more than 50%) got reduced to 22% by the end.

Trend:  There has been a secular decline in the poverty ratio. Because of the increase in population, the number of poor people remained stable for a long period of time.

Interstate variations:  More than 90% of India’s poor are living in Bihar, Odisha, Maharashtra, Tamil Nadu, Madhya Pradesh, Andhra Pradesh, West Bengal, and Uttar Pradesh. Gujarat, Kerala, Haryana, Goa, and Punjab have a low poverty ratio.

Vulnerable groups:  Among the economic groups, the most vulnerable groups are the rural agricultural labour households and the urban casual labour households. On the other hand, among the social groups, the most vulnerable groups are scheduled castes and scheduled tribes.

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Inequality of income within a family:  Women, female infants, and elder people suffer more than other members of the family. They are the poorest of the poor.

Rural and urban poverty:  Nearly 75% of poor people live in rural areas. Many poor people from rural areas migrate to urban areas in search of jobs. However, the industrial and service sectors cannot provide sufficient jobs to these poor people.

Causes of Poverty in India

Inequality in the distribution of income and wealth:  During the plan periods, the national income of India has been increasing, but it has not been distributed properly among the different sections of people. The majority of the income of the economy has been enjoyed by the rich. These inequalities in the distribution of wealth and income have worsened the problem of poverty in India.

Underdevelopment of an economy:  Physical and natural resources are underutilized because of a lack of technology, capital, and entrepreneurial ability. Therefore, the productive capacity and gross domestic product of the economy are low. Primitive technology of production occurs in the agricultural sector. They lack irrigation facilities, fertilizers, and a high-yielding variety of seeds. This backwardness in agriculture has given rise to rural poverty.

Price inflation:  Upward trends in the consumer price index during the plan periods led to a fall in the real income of fixed and low-income earners. It decreases purchasing power and hence a lower standard of living and a higher incidence of poverty.

High rate of population growth:  Because of the increase in population, the dependency burden has increased. Hence, the provision for their minimum needs becomes a crucial problem. This high growth rate of the population also signifies lesser availability of health facilities and other amenities and therefore a lower standard of living.

Illiteracy:  Because of a lack of literacy, Indian farmers fail to learn new methods of cultivation, and adopt new tools and implements. Also, the village moneylenders succeed in cheating them more easily. On the other hand, urban people are employed as unskilled workers and receive very low wages in return. They mostly live in slums and they lead miserable lives.

Social causes:  Many social factors such as the caste system, religious faith and beliefs, and joint family system have hindered the process of economic growth.

Political causes:  The policies of the colonial government have ruined traditional handicrafts and discouraged the development of textile industries. Even after Independence , the government failed to protect the interest of the poor.

Anti-Poverty Measures in India

The anti-poverty strategy of the government is based on the promotion of economic growth and targeted anti-poverty programs.

National Rural Employment Guarantee Act (NREGA), September 2005

• 100 days assured employment every year to every household in 200 districts; will be extended to 600 districts later.
• One-third of jobs are reserved for women.
• The Central Government will establish National Employment Guarantee Funds.

National Food for Work Programme (NFWP), 2004

• Launched in 150 most backward districts.
• Open to all rural poor who are in need of wage employment and manual skilled labour.
• 100% centrally sponsored scheme and food grains free of cost. Pradhan Mantri Gramodaya Yojana (PMGY), 2000
• Additional central assistance to states for basic services.

Swarnajayanti Gram Swarozgar Yojana (SGSY), 1999

• To assist poor families above the poverty line by organizing them into self-help groups through a mix of bank credit and government subsidy.

Rural Employment Generation Programme (REGP), 1995

• To create self-employment opportunities in rural areas and small towns.
• To create 25 lakh jobs for the program under the Tenth Five-Year Plan.

Prime Minister Rozgar Yojana (PMRY), 1993

• To create self-employment opportunities for educated unemployed youth in rural areas and small towns.
• To help set up small businesses and industries

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Social Justice

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• 30 Jan 2020
• 13 min read
• GS Paper - 2
• Poverty and Developmental Issues
• Issues Relating to Poverty & Hunger
• Inclusive Growth
• Government Policies & Interventions

Introduction

• Poverty is a state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living. Poverty means that the income level from employment is so low that basic human needs can't be met.
• According to World Bank, Poverty is pronounced deprivation in well-being, and comprises many dimensions. It includes low incomes and the inability to acquire the basic goods and services necessary for survival with dignity. Poverty also encompasses low levels of health and education, poor access to clean water and sanitation, inadequate physical security, lack of voice, and insufficient capacity and opportunity to better one's life.
• In India, 21.9% of the population lives below the national poverty line in 2011.
• In 2018, almost 8% of the world’s workers and their families lived on less than US$1.90 per person per day (international poverty line).

Types of Poverty: There are two main classifications of poverty:

• It was first introduced in 1990, the “dollar a day” poverty line measured absolute poverty by the standards of the world's poorest countries. In October 2015, the World Bank reset it to $1.90 a day.
• Usually, relative poverty is measured as the percentage of the population with income less than some fixed proportion of median income.

Poverty Estimation in India

• Poverty estimation in India is carried out by NITI Aayog’s task force through the calculation of poverty line based on the data captured by the National Sample Survey Office under the Ministry of Statistics and Programme Implementation (MOSPI).
• Poverty line estimation in India is based on the consumption expenditure and not on the income levels.
• Poverty is measured based on consumer expenditure surveys of the National Sample Survey Organisation. A poor household is defined as one with an expenditure level below a specific poverty line.
• The incidence of poverty is measured by the poverty ratio, which is the ratio of the number of poor to the total population expressed as a percentage. It is also known as head-count ratio.
• Alagh Committee (1979) determined a poverty line based on a minimum daily requirement of 2400 and 2100 calories for an adult in Rural and Urban area respectively.
• Subsequently different committees; Lakdawala Committee (1993), Tendulkar Committee (2009), Rangarajan committee (2012) did the poverty estimation.
• As per the Rangarajan committee report (2014), the poverty line is estimated as Monthly Per Capita Expenditure of Rs. 1407 in urban areas and Rs. 972 in rural areas.

Causes of Poverty in India

• Population Explosion: India’s population has steadily increased through the years. During the past 45 years, it has risen at a rate of 2.2% per year, which means, on average, about 17 million people are added to the country’s population each year. This also increases the demand for consumption goods tremendously.
• Low Agricultural Productivity: A major reason for poverty in the low productivity in the agriculture sector. The reason for low productivity is manifold. Chiefly, it is because of fragmented and subdivided land holdings, lack of capital, illiteracy about new technologies in farming, the use of traditional methods of cultivation, wastage during storage, etc.
• Inefficient Resource utilisation: There is underemployment and disguised unemployment in the country, particularly in the farming sector. This has resulted in low agricultural output and also led to a dip in the standard of living.
• Low Rate of Economic Development: Economic development has been low in India especially in the first 40 years of independence before the LPG reforms in 1991.
• Price Rise: Price rise has been steady in the country and this has added to the burden the poor carry. Although a few people have benefited from this, the lower income groups have suffered because of it, and are not even able to satisfy their basic minimum wants.
• Unemployment: Unemployment is another factor causing poverty in India. The ever-increasing population has led to a higher number of job-seekers. However, there is not enough expansion in opportunities to match this demand for jobs.
• Lack of Capital and Entrepreneurship: The shortage of capital and entrepreneurship results in low level of investment and job creation in the economy.
• Social Factors: Apart from economic factors, there are also social factors hindering the eradication of poverty in India. Some of the hindrances in this regard are the laws of inheritance, caste system, certain traditions, etc.
• Colonial Exploitation: The British colonisation and rule over India for about two centuries de-industrialised india by ruining its traditional handicrafts and textile industries. Colonial Policies transformed india to a mere raw-material producer for european industries.
• Climatic Factors: Most of india’s poor belong to the states of Bihar, UP, MP, Chhattisgarh, odisha, Jharkhand, etc. Natural calamities such as frequent floods, disasters, earthquake and cyclone cause heavy damage to agriculture in these states.
• Poverty Trap:

Poverty Alleviation Programs in India

• Integrated Rural Development Programme (IRDP): It was introduced in 1978-79 and universalized from 2 nd October, 1980, aimed at providing assistance to the rural poor in the form of subsidy and bank credit for productive employment opportunities through successive plan periods.
• Jawahar Rozgar Yojana/Jawahar Gram Samridhi Yojana: The JRY was meant to generate meaningful employment opportunities for the unemployed and underemployed in rural areas through the creation of economic infrastructure and community and social assets.
• Rural Housing – Indira Awaas Yojana: The Indira Awaas Yojana (LAY) programme aims at providing free housing to Below Poverty Line (BPL) families in rural areas and main targets would be the households of SC/STs.
• Food for Work Programme: It aims at enhancing food security through wage employment. Food grains are supplied to states free of cost, however, the supply of food grains from the Food Corporation of India (FCI) godowns has been slow.
• National Old Age Pension Scheme (NOAPS): This pension is given by the central government. The job of implementation of this scheme in states and union territories is given to panchayats and municipalities. The states contribution may vary depending on the state. The amount of old age pension is ₹200 per month for applicants aged 60–79. For applicants aged above 80 years, the amount has been revised to ₹500 a month according to the 2011–2012 Budget. It is a successful venture.
• Annapurna Scheme: This scheme was started by the government in 1999–2000 to provide food to senior citizens who cannot take care of themselves and are not under the National Old Age Pension Scheme (NOAPS), and who have no one to take care of them in their village. This scheme would provide 10 kg of free food grains a month for the eligible senior citizens. They mostly target groups of ‘poorest of the poor’ and ‘indigent senior citizens’.
• Sampoorna Gramin Rozgar Yojana (SGRY): The main objective of the scheme continues to be the generation of wage employment, creation of durable economic infrastructure in rural areas and provision of food and nutrition security for the poor.
• Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) 2005: The Act provides 100 days assured employment every year to every rural household. One-third of the proposed jobs would be reserved for women. The central government will also establish National Employment Guarantee Funds. Similarly, state governments will establish State Employment Guarantee Funds for implementation of the scheme. Under the programme, if an applicant is not provided employment within 15 days s/he will be entitled to a daily unemployment allowance.
• National Rural Livelihood Mission: Aajeevika (2011): It evolves out the need to diversify the needs of the rural poor and provide them jobs with regular income on a monthly basis. Self Help groups are formed at the village level to help the needy.
• National Urban Livelihood Mission: The NULM focuses on organizing urban poor in Self Help Groups, creating opportunities for skill development leading to market-based employment and helping them to set up self-employment ventures by ensuring easy access to credit.
• Pradhan Mantri Kaushal Vikas Yojana: It will focus on fresh entrant to the labour market, especially labour market and class X and XII dropouts.
• Pradhan Mantri Jan Dhan Yojana: It aimed at direct benefit transfer of subsidy, pension, insurance etc. and attained the target of opening 1.5 crore bank accounts. The scheme particularly targets the unbanked poor.
• The Global Multidimensional Poverty Index-2018 released by the UN noted that 271 million people moved out of poverty between 2005-06 and 2015-16 in India. The poverty rate in the country has nearly halved, falling from 55% to 28% over the ten-year period. Still a big part of the population in india is living Below the Poverty Line.
• Rapid economic growth and the use of technology for social sector programs have helped make a significant dent in extreme poverty in the country.
• Despite rapid growth and development, an unacceptably high proportion of our population continues to suffer from severe and multidimensional deprivation. Thus, a more comprehensive and inclusive approach is required to eradicate poverty in India.

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Essay on Poverty | Poverty Essay for Students and Children in English

February 14, 2024 by Prasanna

Essay on Poverty: As commented by Mahatma Gandhi decades back, ‘Poverty is the worst form of violence’. During recent years, Poverty is the biggest hurdle in an entire way towards India’s development. Poverty is a worse condition in which the person entirely fails to fulfil his/her physiological needs and the need for food and luxurious life. Poverty-stricken people can also have the best facility for fighting against the diseases and get balanced nutrition and proper medical assistance whenever required.

Even since the immemorial times, poverty has been a more comprehensive concerning issue, and it intensified more in India under the British rule, reaching a peak in the 1920s. The essay on poverty contains various facts and details that are important for understanding the students about the concerned agenda.

You can also find more  Essay Writing  articles on events, persons, sports, technology and many more.

Long and Short Essays on Poverty for Students and Kids in English

We provide children and students with essay samples on a long essay of 500 words and a short essay of 150 words on the topic “Poverty” for reference.

Short Essay on Poverty 150 Words in English

Short Essay on Poverty is usually given to classes 1, 2, 3, 4, 5, and 6.

Poverty is the lack of food, clothing, proper shelter, medicine, education, and other essential elements for better survival in the World. It is also the assurance of having equal human rights. Poverty is a worse situation that forces people to starve without proper shelter, clothing, ethical rights, and educational assistance.

Several reasons lead to poverty in any country. Even though there are several solutions to avoid the poverty attack, the lack of proper unity among a country’s residents for following the answers leads to the issues. This is another primary reason why the poverty rate is rapidly rising with each passing day.

The spread of the epidemic diseases also leads to the rising rate of poverty in any country. This is because most poor people cannot maintain their health status and get appropriate medical aid in such situations. Poverty is the adverse situation that makes the people unable to go to the service assurers for their needs, and go even more towards the diseases and illness due to unclean and unhygienic food and water and living in unhealthy situations.

It is the effect that makes people powerless and risks their freedom. This is because a poverty-stricken person might enter the vicious circle of slavery. But, this is an inescapable issue, and thus the person who is stuck in it has to live with it. Poverty is an adverse human situation that brings grief, pain, and despair in individuals’ lives. It is the lack of money and necessities for living luxuriously and adequately with access to all the essential elements. This is an adverse situation that might also make a child unable to enter the school and study during childhood, and this is also the reason behind worse social issues like child labour and slavery.

Poverty means the shortage of money for arranging even the perfect two times meal and have a healthy nutritious diet. Such people do not have enough money to afford the essentials for living a perfect and healthy human life. Thus, there are several ways available that one can use for defining poverty.

Poverty is the most common social issue in the underdeveloped or developing nations, like India and Africa. These nations have a higher poverty rate than the developed countries across the World. This is because a significant segment of people in these countries do not have access to better-earning opportunities and income and cannot meet the basic needs of life. A more substantial segment of these nations’ population is illiterate, stays hungry, and lives without a home and proper clothes.

Poverty is also the primary reason that hinders the country’s economic, social, and political growth. Poor people do not have enough money to satisfy all their needs and lives the entire life without access to many facilities, including even a two-day meal and clean drinking water. Poor people are thus forced to enter into wrong paths and do crimes for earning their living. There are several reasons for poverty in a nation, and for India, it was mainly the British rule, slavery conditions, and rising epidemic illness rates. Children from low-income families do not even get access to education and facility to have proper schooling and medical aids. Many of them are not even aware of the modern advancements that the comparatively more prosperous people have access to.

Long Essay on Poverty 500 Words in English

Long Essay on Poverty is usually given to classes 7, 8, 9, and 10.

Poverty is a worse situation that represents poor quality of life, rising illiteracy and malnutrition, lack of basic and essential elements of living, lower development of the human resource, and others. This is a more significant challenge, significantly hindering the growth of the developing nations, like India. Poverty is the phenomenon in which a segment of society does not have access to meeting the basic needs of life and have a healthier life. The experts also observe that poverty level is still declining since India’s last five years (reaching 26.1% in 1999-2000 to 35.97% in 1993-1994)

Poverty in India has also declined at the state level rapidly. In Madhya Pradesh, the poverty rate fell from 43.42% to 37.43%. Not only this, but in other states like UP, and Orissa too, the poverty rate has gone downwards. However, even though there is a downfall in the country’s poverty rate, to eradicate it from the routes, we must make use of some effective programs with combined efforts of Government. It is necessary for the Government of the country to formulate effective strategies for developing a socially poor sector of the society using the critical components like population control measures, and primary education made compulsory, employment generation, and others.

Several issues arise due to a higher poverty rate. Illiteracy increases with poverty as people cannot access proper education and get learning resources due to lack of money. Poverty also leads to rising malnutrition as poor people are unable to afford a proper two-time meal and get a nutritious diet to stay healthy. In turn, this leads to increasing illness and diseases that also remains uncured because of lack of medical aid. Due to poverty, families have lower income that is unable to meet their needs, and thus the children are also forced into child labour to meet the demands.

Unemployment is a significant cause of poverty as it leads to a shortage of money and affects the daily lives of the people. It also forces people to work against their will in harmful conditions. Poverty leads to social stress due to inequality in income between the rich and the poor. This also creates a worse issue for people as they have to stay out of their homes on roadways, sidewalks, open spaces, and without any shelter. Poverty is a worse issue that affects people from all the demographics and age group in adverse ways, causing severe losses and stress for them. This is a concerning factor, and only the Government of a nation can come up with practical ways to reduce the poverty rate.

Poverty is an adverse condition in which the people are left without shelter in a depriving state for basic necessities like food, water, clothes, etc. India has a higher poverty rate. A more significant segment of the entire population cannot afford even the two-time meals properly, have to sleep on the roadsides, wear dirty clothes, drink unclean water, and live in unhealthy and unhygienic conditions. Poor people lack access to proper and healthy nutrition, medical aid, educational assistance, and other essential services to better their lives and the lives of their children.

In urban India, poverty is rapidly rising due to the rise in urban population as people from many rural areas are shifting towards the urban ones. As people move in search of employment and a better lifestyle, but lack of employment opportunities forces them into a financially unstable situation where sometimes they are even forced to work under harmful and unpleasing conditions. In India, more than eight crore people’s income is still lower than the poverty line, and 4.5 crore urban people stand at the verge of the poverty level. A more significant number of urban people stays in the slums, and most of them are illiterates.

Despite many initiatives of Government and NGOs, there is still no satisfying effect regarding the lowering of the poverty level. Several reasons lead to poverty like one of India’s significant cause for poverty is the rising population, poor agriculture, lack of employment opportunities, corruption, a wider gap between poor and rich, epidemic diseases, and many more. A more significant per cent of the Indian population depends on the agriculture sector, which is getting poor rapidly. People also face a shortage of food due to poor agriculture and unemployment.

Furthermore, as there is no limitation on having children after marriage, the rising population also leads to poverty. There are more stomachs to feed, and the income cannot satisfy the same for many families. Furthermore, as the basic facilities are not available adequately, many people get poverty-stricken. With this, the poor become extra poor and richer ones get extra rich, widening the gap between both the segments.

Poverty leads to severe impacts ion the entire society and adversely affects the lives of the people. Poverty leads to illiteracy, lack of proper diet and nutrition, child labour, poor lifestyle and lousy sanitization, and other adverse effects. People are often unable even to get a proper two-time meal and clean drinking water, and due to lack of a healthy diet, the children are mostly malnutrition. Children are unable to study and get appropriate education, and thus the cycle of poverty continues in the families for generations. This eventually hinders the overall development of the nation.

For controlling poverty, there are specific measures that we can take to solve the issue for ensuring a better lifestyle for all the people staying on the planet. There are specific effective measures like farmers must receive proper and necessary access to facilities for better agriculture. The illiterate people must get adequate access to education and training to understand several aspects of a better life. People must be given training for family planning and sex education for population control. Every child must go to school, and there must also be new employment opportunities for all type of people.

Poverty Essay Conclusion

Poverty is not an individual-level problem, but it is a broader issue for the entire nation and the planet. This is a significant threat to human resource development and must be taken care of on a priority basis. People must consider essential and effective measures to control the poverty rate. We must combined work to eradicate all the loopholes in the government systems and encourage the organizations which work to handle the poverty crisis.

The article contains an essay on poverty to satisfy various students’ educational and academic requirements from different classes. This is a concerning factor. The students must understand the issue sufficiently to eradicate the problem and ensure a better and developed lifestyle for all the people Worldwide.

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Poverty Essay for Students and Children

500+ words essay on poverty essay.

“Poverty is the worst form of violence”. – Mahatma Gandhi.

How Poverty is Measured?

For measuring poverty United nations have devised two measures of poverty – Absolute & relative poverty.  Absolute poverty is used to measure poverty in developing countries like India. Relative poverty is used to measure poverty in developed countries like the USA. In absolute poverty, a line based on the minimum level of income has been created & is called a poverty line.  If per day income of a family is below this level, then it is poor or below the poverty line. If per day income of a family is above this level, then it is non-poor or above the poverty line. In India, the new poverty line is  Rs 32 in rural areas and Rs 47 in urban areas.

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Causes of Poverty

According to the Noble prize winner South African leader, Nelson Mandela – “Poverty is not natural, it is manmade”. The above statement is true as the causes of poverty are generally man-made. There are various causes of poverty but the most important is population. Rising population is putting the burden on the resources & budget of countries. Governments are finding difficult to provide food, shelter & employment to the rising population.

The other causes are- lack of education, war, natural disaster, lack of employment, lack of infrastructure, political instability, etc. For instance- lack of employment opportunities makes a person jobless & he is not able to earn enough to fulfill the basic necessities of his family & becomes poor. Lack of education compels a person for less paying jobs & it makes him poorer. Lack of infrastructure means there are no industries, banks, etc. in a country resulting in lack of employment opportunities. Natural disasters like flood, earthquake also contribute to poverty.

In some countries, especially African countries like Somalia, a long period of civil war has made poverty widespread. This is because all the resources & money is being spent in war instead of public welfare. Countries like India, Pakistan, Bangladesh, etc. are prone to natural disasters like cyclone, etc. These disasters occur every year causing poverty to rise.

Ill Effects of Poverty

Poverty affects the life of a poor family. A poor person is not able to take proper food & nutrition &his capacity to work reduces. Reduced capacity to work further reduces his income, making him poorer. Children from poor family never get proper schooling & proper nutrition. They have to work to support their family & this destroys their childhood. Some of them may also involve in crimes like theft, murder, robbery, etc. A poor person remains uneducated & is forced to live under unhygienic conditions in slums. There are no proper sanitation & drinking water facility in slums & he falls ill often &  his health deteriorates. A poor person generally dies an early death. So, all social evils are related to poverty.

Government Schemes to Remove Poverty

The government of India also took several measures to eradicate poverty from India. Some of them are – creating employment opportunities , controlling population, etc. In India, about 60% of the population is still dependent on agriculture for its livelihood. Government has taken certain measures to promote agriculture in India. The government constructed certain dams & canals in our country to provide easy availability of water for irrigation. Government has also taken steps for the cheap availability of seeds & farming equipment to promote agriculture. Government is also promoting farming of cash crops like cotton, instead of food crops. In cities, the government is promoting industrialization to create more jobs. Government has also opened  ‘Ration shops’. Other measures include providing free & compulsory education for children up to 14 years of age, scholarship to deserving students from a poor background, providing subsidized houses to poor people, etc.

Poverty is a social evil, we can also contribute to control it. For example- we can simply donate old clothes to poor people, we can also sponsor the education of a poor child or we can utilize our free time by teaching poor students. Remember before wasting food, somebody is still sleeping hungry.

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'lifted 250 million indians out of poverty, demonstrated sustainable development': modi's message to the global south.

At the UN's Summit of the Future, Prime Minister Narendra Modi announced that India has lifted 250 million people out of poverty. He emphasized India's sustainable development achievements and expressed willingness to share its success story with the Global South, representing one-sixth of humanity in his address.

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