essay about india poor

Poverty in India Essay for Students and Children

500+ words essay on poverty in india.

Poverty refers to a situation in which a person remain underprivileged from the basic necessities of life. In addition, the person does not have an inadequate supply of food, shelter, and clothes. In India, most of the people who are suffering from poverty cannot afford to pay for a single meal a day. Also, they sleep on the roadside; wear dirty old clothes. In addition, they do not get proper healthy and nutritious food, neither medicine nor any other necessary thing.

Causes of Poverty

The rate of poverty in India is increasing because of the increase in the urban population. The rural people are migrating to cities to find better employment. Most of these people find an underpaid job or an activity that pays only for their food. Most importantly, around crores of urban people are below the poverty line and many of the people are on the borderline of poverty.

Besides, a huge number of people live in low-lying areas or slums. These people are mostly illiterate and in spite of efforts their condition remains the same and there is no satisfactory result.

Furthermore, there are many reasons that we can say are the major cause of poverty in India. These causes include corruption, growing population, poor agriculture , the wide gap of rich and poor, old customs, illiteracy, unemployment and few more. A large section of people are engaged in an agricultural activity but the activity pays very less in comparison to the work done by employees.

Also, more population needs more food, houses and money and in the lack of these facilities the poverty grows very quickly. In addition, being extra poor and extra rich also widens the gap between the rich and poor.

Moreover, the rich are growing richer and the poor are getting poorer creating an economic gap that is difficult to fill up.

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Effects of Poverty

It affects people living in a lot of ways. Also, it has various effects that include illiteracy, reduced nutrition and diet, poor housing, child labor, unemployment , poor hygiene and lifestyle, and feminization of poverty, etc. Besides, this poor people cannot afford a healthy and balanced diet, nice clothes, proper education , a stable and clean house, etc. because all these facilities require money and they don’t even have money to feed two meals a day then how can they afford to pay for these facilities.

The Solutions for Ending Poverty

For solving the problem of poverty it is necessary for us to act quickly and correctly. Some of the ways of solving these problems are to provide proper facilities to farmers . So, that they can make agriculture profitable and do not migrate to cities in search of employment.

Also, illiterate people should be given the required training so that they can live a better life. To check the rising population, family planning should be followed. Besides, measures should be taken to end corruption, so that we can deal with the gap between rich and poor.

In conclusion, poverty is not the problem of a person but of the whole nation. Also, it should be deal with on an urgent basis by the implementation of effective measures. In addition, eradication of poverty has become necessary for the sustainable and inclusive growth of people, society, country, and economy .

FAQs about Poverty in India Essay

Q.1 List some ways to end poverty in India. A.1 Some ways to end poverty in India are:

Develop a national poverty reduction plan
Equal access to healthcare and education
Sanitation facility
Food, water, shelter, and clothing facility
Enhance economic growth with targeted action

Q.2 Which is the poorest state in India? A.2 Chhattisgarh is the poorest state of the country.

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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 Essay

Poverty is a situation in which people do not have enough money for basic necessities or survival, such as food and shelter. Due to the poor income of the people, they cannot even meet their basic needs. Here are a few sample essays on the topic of ‘poverty’.

100 Word Essay On Poverty In India

Poverty is the financial state of the individual or family in which they are unable to meet their basic needs in life. A poor person does not earn enough to buy basic necessities such as a 2-time meal, water, shelter, cloth, the right education, and many more. In India, overpopulation and underdevelopment is the main cause of poverty. India's poverty can be decreased with a few effective programs, in which the government should focus on developing the rural areas by providing primary education, implementing population control policies, creating jobs, and providing basic necessities at subsidized rates. Poverty is a very serious problem in the whole world and many efforts are being made to eradicate poverty.

200 Word Essay On Poverty In India

500 word essay on poverty in india, causes of poverty, poverty situation in india, how to solve poverty in india.

Poverty is defined as a situation wherein a person or family lacks the money to fulfil basic needs. Poor people don’t have good enough money to make a decent living; they don't have the funds for housing, nutrition, and schooling which are vital for survival. So, poverty can be understood absolutely as a lack of money, or extra extensive, obstacles to everyday human life.

Mahatma Gandhi once said that poverty is the worst form of violence. Poverty has been proven as the biggest hurdle in the development of India. Since 1970, the Indian government has made eradicating poverty a priority in its 5-year plans. Policies are made to ensure food security, housing, and employment through more access to increasing salary employment and enhancing access to simple social services. The Indian authorities and non-governmental corporations have initiated numerous new programs to relieve poverty, like easy entry to loans, enhancing agricultural techniques and price supports, and providing vocational skill training to people so they can get jobs. These measures have helped eliminate famines, reduce absolute poverty ranges, and decreased illiteracy and malnutrition.

The occurrence of rural poverty has declined in the past years because of rural-to-city migration. A severe limit on population growth is necessary to address the issue of poverty.

Poverty is a condition in which a person lacks basic necessities of life. This consists of food, water, clothes, and shelter. Moreover, people living on or below the poverty line don’t have enough money to buy even a single meal a day. They somehow survive with whatever they could discover on the street – salvaging food from the trash, sleeping on park benches or the roadside and depending on the charity of those with more resources.

There are many factors that are responsible for poverty. The principal causes are unemployment, illiteracy, increasing population, and lack of proper schooling and training. Humans are no longer able to earn a livelihood since they are unable to find and obtain employment. They're not able to feed their family. The other causes of poverty include war, natural disasters, political instability, and many others.

India is undoubtedly one of the most populous democracies, and its economic structure is rapidly increasing. India is still considered a developing country as opposed to a developed one. Poverty is one such issue, which creates hurdles in the development of India. A good sized portion of the population in India lives in poverty. Even 75 years after gaining our freedom, we still have problems, and poverty has troubled our country. India has a very excessive rate of poverty, which affects its progress.

Many business and public region organizations have effectively labored with the federal and state governments to cope with this difficulty. Their principal aim is to abolish poverty in India completely. Together, they have been able to put into effect some effective policies to partly eliminate this intense issue and maintain the happiness of their people.

If you want to make an actual change and a difference in society, then some measures should be taken that assist the population living beneath the poverty line. The main two reasons for poverty in India are illiteracy and unemployment. Only with appropriate education and monetary aid can this hassle be solved. In India, education and population control is the strongest weapon against poverty. The best way to eradicate poverty is through educating the masses.

Moreover, actions taken by the government can help in eradicating the situation of poverty in India to a greater extent. Some of the options available are—

Increasing the variety of jobs available in India

The employees who lack literacy should receive advanced schooling.

The public distribution system needs to carry out its responsibilities adequately.

The underprivileged should receive free food and water.

Controlling population growth is necessary and also introducing birth control promotion plans is important.

Farmers should have access to appropriate agricultural resources. They can also improve their profit with this technique. They won't migrate to metropolitan regions looking for food as a result.

Poverty is a major problem of the country and it must be addressed on an urgent basis through the implementation of powerful measures. In addition, the eradication of poverty has turned out to be important for the sustainable and inclusive boom of people, society and the economy.

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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.

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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.

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India eliminates extreme poverty

Subscribe to the sustainable development bulletin, surjit s. bhalla and surjit s. bhalla former executive director for india, bangladesh, sri lanka and bhutan - international monetary fund @surjitbhalla karan bhasin karan bhasin graduate assistant - university at albany, suny @karanbhasin95.

March 1, 2024

Data now confirms that India has eliminated extreme poverty.
India should now graduate to a higher poverty line, which would provide an opportunity to redefine existing social protection programs in order to give greater support to the genuine poor.

India has just released its official consumption expenditure data for 2022-23, providing the first official survey-based poverty estimates for India in over ten years. The previous official survey was conducted from 2011-12, and the absence of up-to-date data for India has added considerable uncertainty to global poverty headcount ratios.

Before presenting the results, a quick methodological note is in order. India has two different methods for estimating consumption expenditures: the Uniform Recall Period (URP) and the more accurate Modified Mixed Recall Period (MMRP). The URP method asks households questions on their consumption expenditures over a uniform recall period of 30 days. The MMRP asks household consumer expenditure on perishables (for example, fruits, vegetables, eggs) for the last 7 days, durable goods for the last 365 days, and expenditure on all other items for the last 30 days. India officially shifted to the MMRP, the standard in other countries, beginning with the 2022-23 survey, though it previously experimented with both methods.

Comparable poverty estimates for India are available for the period 1977-78 to 2011-12 using the URP method and from 2011-12 to 2022-23 using the MMRP method for the purchasing power parity (PPP)$ 1.9 (international extreme poverty) and PPP$ 3.2 poverty lines (recommended line by the World Bank for lower middle-income countries such as India).

What do the data show?

Growth : Real per capita consumption growth of 2.9% per annum (pa) since 2011-12; rural growth at 3.1% pa was significantly higher than urban growth of 2.6%.

Inequality : An unprecedented decline in both urban and rural inequality. The urban Gini (x100) declined from 36.7 to 31.9; the rural Gini declined from 28.7 to 27.0. In the annals of inequality analysis, this decline is unheard of, and especially in the context of high per capita growth. We offer some explanations below on why this may have happened, but more work will be required to fully explore the issue.

Poverty : High growth and large decline in inequality have combined to eliminate poverty in India for the PPP$ 1.9 poverty line. (Here we use the PPP$ 1.9 line [2011 prices] rather than the PPP$ 2.15 line at 2017 prices because the former closely corresponds to the official India Tendulkar poverty line.) The Headcount Poverty Ratio (HCR) for the 2011 PPP$ 1.9 poverty line has declined from 12.2 per cent in 2011-12 to 2 per cent in 2022-23, equivalent to 0.93 percentage points (ppt) per year. Rural poverty stood at 2.5% while urban poverty was down to 1%. For the PPP$ 3.2 line, HCR declined from 53.6% to 20.8% (almost 3 ppt per year). Note that these estimates do not take into account the free food (wheat and rice) supplied by the government to approximately two-thirds of the population, nor utilization of public health and education.

The data show a strikingly lower number of poor people in India, at both thresholds, than those estimated by the World Bank. That institution relied on the Consumer Pyramids Household Survey, a privately provided data source, to derive poverty numbers of 10% (at $1.90) and 45% (at $3.20) in 2020, despite well-known problems with that data explained by Bhalla, Bhasin and Virmani (2022) .

Time for a higher poverty line

In the chart below, we show India’s HCR for both the 1.9$PPP and the 3.2$PPP from 1977-78. The change in slope of the HCR for the higher 3.2$ poverty line reveals the extent of inclusive growth experienced in India over the last decade.

Poverty HCR (2011 PPP 1.9$)

Poverty hcr (2011 ppp 3.2$).

Given the near elimination of extreme poverty, we outlined the need for India to transition to a higher poverty line in an earlier article . The decline in HCR for both the poverty lines illustrates this point, as we can see not much decline can occur at the lower poverty line. Incidentally, the decline in HCR at the higher poverty line is remarkable given that in the past it took 30 years for India to witness a similar decline in poverty levels as now witnessed over 11 years.

How and why the results

The relatively higher consumption growth in rural areas should not come as a surprise given the strong policy thrust on redistribution through a wide variety of publicly funded programs. These include a national mission for construction of toilets and attempts to ensure universal access to electricity, modern cooking fuel, and more recently, piped water. As an example, rural access to piped water in India as of 15 th August 2019 was 16.8% and at present it is 74.7%. The reduced sickness from accessing safe water may have helped families earn more income. Similarly, under the Aspirational District Program , 112 districts of the country were identified as having the lowest development indicators. These districts were targeted by government policies with an explicit focus on improving their performance in development.

Key takeaways

Official data now confirms that India has eliminated extreme poverty, as commonly defined in international comparisons. This is an encouraging development with positive implications for global poverty headcount rates. This also means that time has come for India to graduate to a higher poverty line much like other countries. The transition to a higher poverty line provides an opportunity to redefine existing social protection programs particularly with the objective of better identification of intended beneficiaries and providing greater support to the genuine poor.

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Essay on Poverty in india 100, 200, 300, 500 words

Essay on poverty in india.

Essay on Poverty in India : Poverty is one of the major challenges that India has been grappling with for many decades. Despite the significant economic growth that India has seen in recent years, a large proportion of its population continues to live in abject poverty. Poverty is not just an economic issue but a social and cultural issue which affects the lives of people in many ways. In this essay, we will examine the causes and consequences of poverty in India and some of the measures taken to remove it.

1. lack of access to basic resources

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Poverty in India is a complex issue for many reasons. One of the primary causes of poverty is lack of access to basic resources such as food, clean water, health care, and education. India is a country with a high population density, and a large proportion of its population lives in rural areas where access to these basic resources is limited. Additionally, India has a high rate of illiteracy and unemployment, which further adds to the problem of poverty.

Another important reason for poverty in India is the unequal distribution of wealth. A small fraction of the population has access to wealth and resources, while a vast majority live in poverty. This inequality is mainly due to historical and social factors that have led to the concentration of wealth and power in the hands of a few.

The consequences of poverty in India are serious and far-reaching. Poverty leads to malnutrition, disease and premature death, especially among children. It also results in lack of access to education, which perpetuates the cycle of poverty. Poverty also leads to social exclusion and discrimination, which further marginalises vulnerable communities.

To overcome the issue of poverty in India, the government has implemented several measures. One of the most important measures is the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), which guarantees 100 days of employment to rural households. The government has also implemented various poverty alleviation programs such as the National Rural Livelihoods Mission (NRLM), Pradhan Mantri Gram Sadak Yojana (PMGSY) and Pradhan Mantri Jan Dhan Yojana (PMJDY).

However, despite these measures, poverty remains a significant challenge in India. More investment is needed in basic resources such as education, health care and infrastructure. The government needs to address the issue of income inequality by implementing policies that promote equitable distribution of resources. Additionally, greater awareness and social action is needed to address the cultural and social factors that perpetuate poverty.

Conclusion : poverty in India is a complex and multidimensional issue that requires concerted efforts from all stakeholders. While the government has taken several measures to address poverty, more investment is needed in basic resources and policies that promote equitable distribution of wealth. Additionally, greater awareness and social action is needed to address the cultural and social factors that perpetuate poverty. Only through a concerted effort can India tackle the issue of poverty and achieve a more equitable and just society.

Definitely! Poverty in India is a vast and multidimensional problem affecting various aspects of people’s lives. Here are some additional facts and information on poverty in India:

1.Poverty rate: According to the World Bank, more than 134 million people in India live below the poverty line, which is defined as living on less than $1.90 per day. The poverty rate in India has decreased over the years, but it remains a significant challenge, especially in rural areas.

2. Rural-urban divide: Poverty in India is concentrated in rural areas, where access to basic resources is limited. According to a report by the National Sample Survey Office, rural poverty in India is twice that of urban poverty.

3. Education and Poverty: Education is an important factor in reducing poverty, as it helps individuals acquire the necessary skills and knowledge to secure better jobs and improve their standard of living. However, India has a high rate of illiteracy, which perpetuates the cycle of poverty.

4. Health and poverty: Poverty in India is associated with poor health outcomes, especially among children. Malnutrition is a widespread problem, with 34% of children under the age of five being underweight. Lack of access to clean water and sanitation also leads to the spread of diseases such as diarrhoea, cholera and typhoid.

5. Women and poverty: Women are more likely to live in poverty than men in India, mainly due to cultural and social factors that limit their access to education, health care and employment opportunities.

6. Social Safety Net: The Government of India has implemented various social safety net programs to address poverty, such as the Public Distribution System (PDS), which provides subsidized food grains to low-income households.

However, these programs have been criticized for their inefficiency and corruption.

7. Sustainable Development Goals: India is committed to achieving the United Nations’ Sustainable Development Goals (SDGs), which aim to eradicate poverty, reduce inequality and promote sustainable development. To achieve these goals, the government has implemented various initiatives such as the Swachh Bharat Abhiyan, which aims to provide access to clean water and sanitation.

In short, poverty in India is a vast and complex issue that requires a multi-pronged approach to address it. While progress has been made, more needs to be done to achieve a more equitable and just society

Alleviating poverty in India requires a concerted effort by various stakeholders including the government, civil society organisations, the private sector and individuals. Here are some measures that can help reduce poverty in India:

1.Investment in basic resources: Investment in basic resources such as education, health care, water and sanitation is necessary to reduce poverty. Ensuring that all citizens have access to these resources will help break the cycle of poverty.

2. Promotion of employment opportunities: Creating employment opportunities especially in rural areas will help in reducing poverty. The government can implement policies that promote the growth of small and medium-sized enterprises, which are the primary sources of employment in India.

3. Promoting Entrepreneurship: Encouraging entrepreneurship can help reduce poverty by creating more employment opportunities and promoting economic growth. The government can provide support to entrepreneurs through funding, training and other resources.

4. Promoting gender equality: Promoting gender equality will help reduce poverty, as women are more likely to live in poverty than men. The government can implement policies that promote women’s education, employment and participation in decision making.

5. Strengthening social safety net: The government may strengthen social safety net programs such as the National Rural Employment Guarantee Act (NREGA) and the Public Distribution System (PDS) to ensure that benefits reach the intended beneficiaries.

6. Strengthening Governance: Corruption and inefficiency in governance are major barriers to poverty reduction. Government can strengthen governance by implementing policies that promote transparency, accountability and the rule of law.

7. Promote sustainable development: Promoting sustainable development can help reduce poverty in the long run. The government can implement policies that promote sustainable agriculture, renewable energy and environmental protection.

In conclusion, reducing poverty in India requires a multi-pronged approach involving various stakeholders. Ensuring access to basic resources, promoting employment and entrepreneurship, promoting gender equality, strengthening social safety nets, strengthening governance and promoting sustainable development are some of the measures that can do help reduce poverty in India.

Poverty in India is a widespread issue that affects a significant portion of the population. Despite economic growth in recent years, a large proportion of the population still lives in poverty, with inadequate access to basic necessities such as food, shelter and health care. Poverty in India is a complex problem caused by various factors such as caste discrimination, lack of education, unemployment and inadequate infrastructure.

Caste discrimination is one of the major causes of poverty in India. The caste system has existed in India for centuries and is deeply rooted in the social fabric of the country. People from lower castes are often discriminated against and denied access to basic resources and opportunities. This often leads to a cycle of poverty that is difficult to break.

Lack of education is another factor that contributes to poverty in India. Without access to education, people are unable to acquire the skills necessary to secure well-paying jobs. This keeps them stuck in low paying jobs with little hope of upward mobility. Apart from this, lack of education also leads to lack of awareness about basic health and hygiene practices, which leads to more diseases.

Unemployment is also an important contributor to poverty in India. Despite the government’s efforts to create jobs, the unemployment rate remains high, especially among the youth. This leads to a reduction in income, making it difficult for people to afford basic needs such as food, shelter and health care.

Inadequate infrastructure is another factor that increases poverty in India. Poor road network, inadequate health facilities and lack of access to safe drinking water and sanitation facilities are some of the basic infrastructure problems that affect people living in poverty. These problems make it difficult for people to access basic necessities and increase their vulnerability to diseases and other health problems.

Poverty in India is a complex problem that requires a multidimensional solution. Addressing issues such as caste discrimination, lack of education, unemployment and inadequate infrastructure can go a long way in reducing poverty in India. Additionally, the government needs to focus on creating more jobs and providing a better social safety net for those living in poverty. Only by adopting a comprehensive approach to reducing poverty can India hope to lift its citizens out of poverty and move towards a better future and their vulnerability to diseases and other health problems.

In conclusion, poverty in India is a complex problem that requires a multi-pronged solution. Addressing issues such as caste discrimination, lack of education, unemployment and inadequate infrastructure can go a long way in reducing poverty in India. The government needs to focus on creating more jobs and providing a better social safety net for those living in poverty. Only by adopting a comprehensive approach to poverty reduction can India hope to lift its citizens out of poverty and move towards a better future.

Essay on Poverty in India 300 words

Introduction:

Poverty is a multifaceted issue that has plagued India for centuries. Despite remarkable economic growth and development in recent decades, a significant portion of India’s population continues to grapple with poverty. This essay aims to shed light on the persistent problem of poverty in India, its causes, consequences, and potential solutions.

Income Inequality: Income inequality is a major driver of poverty in India. The rich-poor divide is stark, with a small elite accumulating enormous wealth while a large section of the population struggles to make ends meet.
Unemployment: High levels of unemployment, particularly in rural areas, contribute to poverty. Lack of access to quality education and skills training perpetuates this problem.
Agricultural Dependence: A significant portion of the Indian population relies on agriculture for their livelihoods. Fluctuating crop yields, inadequate infrastructure, and lack of modern farming techniques make agriculture a precarious source of income.
Social Factors: Caste-based discrimination and social exclusion continue to marginalize certain groups, making it difficult for them to escape the cycle of poverty.
Healthcare: Poverty leads to inadequate access to healthcare, resulting in higher mortality rates and increased susceptibility to diseases.
Education: Impoverished families often cannot afford education for their children, perpetuating a cycle of illiteracy and limited opportunities.
Malnutrition: Poverty contributes to malnutrition, affecting physical and cognitive development, particularly in children.
Crime and Social Unrest: High levels of poverty can foster crime and social unrest, as individuals may resort to illegal means for survival.
Education and Skill Development: Investing in quality education and skill development programs can empower individuals to break free from the cycle of poverty.
Rural Development: Improving infrastructure, agricultural techniques, and providing alternative livelihood options in rural areas can alleviate poverty.
Social Welfare Programs: Expanding and improving social welfare programs, such as food subsidies, healthcare access, and direct cash transfers, can provide immediate relief to those in need.
Reducing Income Inequality: Implementing progressive taxation and wealth redistribution policies can help bridge the income gap.
Addressing Social Discrimination: Stricter enforcement of anti-discrimination laws and promoting social inclusion can reduce the impact of caste-based discrimination.

Conclusion:

Poverty remains a formidable challenge in India, affecting millions of people across the country. To eradicate poverty, it is essential to address its root causes, including income inequality, lack of education, and unemployment. A multi-pronged approach that combines economic development with social welfare programs and efforts to reduce discrimination is crucial to uplift the impoverished sections of society. Only through sustained efforts can India hope to overcome the scourge of poverty and provide a better future for all its citizens.

India, a country known for its rich cultural heritage and economic potential, also grapples with a severe and persistent issue – poverty. With a population of over 1.3 billion, India is home to one-third of the world’s poor. Poverty in India is a complex problem that has deep-rooted causes and far-reaching consequences.

One of the primary causes of poverty in India is the vast income inequality. While India has witnessed significant economic growth over the past few decades, this growth has not been inclusive. A small section of the population has reaped the benefits of economic progress, leaving a large majority of people behind. This inequality is exacerbated by factors such as lack of access to education, healthcare and job opportunities, especially in rural areas.

Furthermore, India’s high population density and limited resources make poverty a persistent challenge. The lack of basic infrastructure, inadequate sanitation facilities and unreliable access to clean drinking water further perpetuate poverty cycles.

Poverty in India has multifaceted consequences, affecting not only the economic well-being of individuals but also their health, education and overall quality of life. It also hinders the country’s overall development and social progress.

Addressing poverty in India requires a comprehensive approach that includes equitable economic policies, improved access to education and healthcare, rural development initiatives and social safety nets. Empowering marginalized communities, investing in skill development and promoting job creation can help break the cycle of poverty.

In conclusion, poverty remains a pressing issue in India, impacting millions of lives. It is essential for the government, civil society and international organizations to work collaboratively to address the root causes of poverty and uplift the disadvantaged populations, ensuring a brighter and more equitable future for all Indians.

Poverty in India remains a pressing issue with multifaceted challenges. Despite economic growth, a significant portion of the population still lives below the poverty line. Factors contributing to this include unequal distribution of wealth, limited access to quality education and healthcare, and a lack of employment opportunities, especially in rural areas. Additionally, social disparities, such as caste and gender discrimination, exacerbate the problem. Addressing poverty requires comprehensive strategies encompassing economic reforms, social programs, and inclusive development initiatives. By tackling these root causes, India can strive towards a more equitable society, improving the lives of millions and fostering sustainable growth.

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Poverty rate in India: Trend over the years and causes

How has the poverty rate in india shifted over the years what are the causes of poverty in india let's find it all out.

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Inflation Rate in India 2023: A closer look at economic trends

GDP of India: Current and historical growth rate, India's rank in the world

GDP of Indian states and union territories

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Essay on Causes of Poverty in India

Students are often asked to write an essay on Causes of 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 Causes of Poverty in India

Introduction.

Poverty in India is a significant issue affecting millions. It’s a complex problem with multiple causes.

Population Growth

Rapid population growth is a major cause of poverty. More people means more resources are needed, leading to scarcity.

Lack of Education

Insufficient education prevents people from securing good jobs, keeping them in poverty.

Unemployment

High unemployment rates also contribute to poverty. Without jobs, people can’t earn money to support themselves.

Social Inequality

Inequality in India, based on caste or gender, limits opportunities for certain groups, perpetuating poverty.

Poverty in India is caused by various factors. Addressing these issues is crucial for poverty reduction.

250 Words Essay on Causes of Poverty in India

India, despite its economic growth and development, is still grappling with the issue of poverty. It is a complex problem with a myriad of causes, deeply rooted in the country’s historical, social, and economic fabric.

Historical Factors

India’s history of colonization significantly contributed to its poverty. The British Empire exploited India’s resources, leading to economic stagnation and widespread poverty. The repercussions of this exploitation continue to affect the country’s economic scenario.

Social Factors

India’s rigid caste system also exacerbates poverty. Lower caste individuals often face discrimination and are denied access to resources and opportunities. This social stratification hinders upward mobility, perpetuating cycles of poverty.

Economic Factors

Economic inequality is another major cause. Despite India’s rapid economic growth, the benefits have not been evenly distributed. The wealth disparity between the rich and the poor continues to widen, leading to persistent poverty among the lower-income groups.

Rapid population growth also contributes to poverty in India. The pressure on limited resources, coupled with inadequate public infrastructure, leads to lower living standards and increased poverty.

Addressing poverty in India requires a multi-faceted approach. Economic policies should aim to reduce inequality and promote inclusive growth. Social reforms are needed to dismantle discriminatory practices and ensure equal access to opportunities. By tackling these issues, India can make significant strides towards eradicating poverty.

500 Words Essay on Causes of Poverty in India

India, despite being one of the fastest-growing economies in the world, grapples with the persistent issue of poverty. A significant portion of the population still lives under dire conditions. The causes of poverty in India are complex and multi-faceted, spanning from historical, social, economic, and political factors.

The roots of poverty in India can be traced back to the colonial era. British imperialism resulted in the exploitation and depletion of India’s resources, leaving a legacy of economic stagnation and underdevelopment. The colonial administration’s focus on cash crops over subsistence farming led to a decline in agricultural productivity, exacerbating poverty.

Caste-based discrimination is another significant factor contributing to poverty. The caste system, a deeply entrenched social hierarchy, often limits access to resources and opportunities for lower-caste individuals, perpetuating their state of poverty. Additionally, gender inequality, marked by a preference for male children and discrimination against women in access to education, health, and employment, further fuels poverty.

India’s economic structure is characterized by a large unorganized sector, which includes informal labor and small-scale industries. These sectors, marked by low wages, job insecurity, and lack of social security, are breeding grounds for poverty. Additionally, the unequal distribution of land and resources, with a small elite owning a large portion of the wealth, exacerbates economic disparities.

Political Factors

Political factors, such as corruption and poor governance, also contribute to poverty. Corruption diverts resources intended for development and welfare schemes, while poor governance leads to ineffective implementation of poverty alleviation programs. Moreover, the lack of political will to enact comprehensive land reforms perpetuates the economic disparities rooted in the feudal landholding system.

Rapid population growth is another significant factor contributing to poverty in India. High fertility rates, especially among the poor, lead to larger families with more mouths to feed, straining the limited resources and perpetuating the cycle of poverty. Moreover, it places immense pressure on the already strained public services, such as education and healthcare.

In conclusion, the causes of poverty in India are deeply intertwined, with historical, social, economic, and political factors acting in concert. Addressing poverty in India thus requires a comprehensive approach that acknowledges and tackles these interrelated factors. It necessitates not only economic reforms but also social and political changes, including the eradication of caste and gender-based discrimination, the improvement of governance, and the promotion of sustainable population growth.

That’s it! I hope the essay helped you.

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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.

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.

Suggestions for Removal of Poverty from India
Income Distribution in India: Pattern and Inequalities
Main Causes of Poverty in India
Problem of Poverty in India and Remedies to Eradicate It

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Patrons of the Poor: Caste Politics and Policymaking in India

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Introduction: Analysing Poverty in India

Published: April 2011
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Poverty in India has proven to be inflexible ever since the country gained its independence more than fifty years ago, prompting the question of what the role of the state or public policy is in reducing poverty in India. This introductory chapter examines the central role of politics in helping to reduce poverty levels in India, as well as the theoretical background of an analysis on poverty. This includes the regime type, which is considered as the ultimate unit of analysis. The chapter discusses class politics, public policy, and caste dominance, and provides a working definition of ‘poverty’. In the latter portion of the chapter, there is a discussion on the state politics and empirical evidence of the poverty levels in two Indian states, Karnataka and Tamil Nadu. The chapter ends with a discussion of the research questions, theoretical implications, and original contribution of the book.

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Poverty in India Essay for Students and Childern

Poverty in India Essay: Poverty is when you lack basic necessities like food, shelter, and clothing. Check Poverty in India Essay in 800, 500 and 250 words

October 10, 2023

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Poverty in India Essay: Poverty means not having enough money to afford basic things like a home, healthcare, and education. It’s a tough situation where people struggle to meet their basic needs because they lack money. This essay explains what poverty is, why it happens, and what is being done to fight it in India. It’s helpful for students who want to write good essays and do well in exams.

Poverty in India Essay 800 Words

Below we are covering Poverty in India Essay in 800 Words.

Poverty is the condition where a person lacks enough money to meet their basic needs, such as food and shelter. In India, poverty is becoming more widespread, particularly in urban areas due to the increasing population. Many people live on the brink of poverty, especially in rural regions, where there are numerous uneducated and unemployed individuals.

People in poverty struggle to afford proper food and often have no homes, forcing them to sleep on streets or sidewalks. This situation leads to a growing demand for food, money, and shelter, but unfortunately, poverty continues to increase due to the scarcity of these resources. This wealth gap between the rich and the poor widens, making it challenging to reduce poverty. The consequences of poverty are numerous and include inadequate housing, illiteracy, a rise in child labor and unemployment, and poor hygiene.

Because of these challenges, impoverished individuals cannot afford nutritious meals, decent clothing, or a quality education simply because they lack the necessary funds.

Understanding Poverty in India

Poverty in India is a complex issue with various dimensions. It is not merely about inadequate income but encompasses a lack of access to basic necessities such as food, clean water, education, healthcare, and sanitation. The Multidimensional Poverty Index (MPI) developed by the United Nations Development Programme (UNDP) highlights the multi-dimensional nature of poverty in India.

Causes of Poverty

India’s population growth, while considered a demographic dividend in certain aspects, has placed substantial pressure on the country’s resources and infrastructure, creating formidable challenges in ensuring adequate provisions for all its citizens. Economic inequality exacerbates the issue, with a considerable portion of the population enjoying substantial economic prosperity while a significant majority grapples with financial instability.

Moreover, the prevalence of unemployment and underemployment, particularly in the informal sector, exacerbates poverty levels by limiting income-earning opportunities for a substantial portion of the population. Additionally, the scarcity of accessible quality education further perpetuates the cycle of poverty, as it constrains individuals’ capacity to secure well-paying jobs and break free from the clutches of economic hardship.

Inadequate healthcare infrastructure and a lack of affordable healthcare services compound these issues, contributing to the persistence of poverty, as health-related problems often result in both reduced income and heightened expenses. Furthermore, the pronounced disparities between rural and urban areas, encompassing disparities in infrastructure, educational access, and employment prospects, significantly contribute to the prevalence of poverty in rural regions, deepening the rural-urban divide and amplifying socioeconomic disparities across the nation.

The Problems Poverty Creates

Malnutrition is a pressing concern intricately linked with poverty in India. This dire situation often results in inadequate nutrition, thereby precipitating issues like stunted growth and developmental impediments, with children being especially vulnerable to its detrimental effects.

Furthermore, the adverse impact of poverty is acutely felt in the realm of education, where limited access to quality learning opportunities becomes a pervasive impediment. This restriction not only hampers personal growth but also undermines the potential for professional advancement, perpetuating the cycle of poverty for many individuals.

Moreover, the challenges posed by subpar healthcare infrastructure and unsatisfactory sanitation conditions disproportionately afflict impoverished communities. This unfortunate reality translates into elevated morbidity and mortality rates, compounding the already dire circumstances of those living in poverty.

Additionally, poverty acts as a catalyst for social inequality, further accentuating the divide between the privileged and the marginalized. This growing chasm between the haves and the have-nots not only fosters disparities in wealth and access but also engenders social unrest and instability, posing a formidable challenge to societal harmony.

Furthermore, poverty in India has a regrettably enduring quality, often taking on the form of generational poverty. This means that the limited access to opportunities for improvement faced by one generation frequently extends its grip to the next, creating a cycle of impoverishment that is difficult to break, unless comprehensive measures are undertaken to address its underlying causes.

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Solutions to Remove Poverty

Investment in education and skill development initiatives holds the potential to empower individuals, equipping them with the knowledge and capabilities needed to access improved employment prospects and elevate their socioeconomic status.

Moreover, the government’s commitment to job creation, particularly in rural regions, through targeted initiatives can play a pivotal role in mitigating the pervasive challenges of unemployment and underemployment, offering hope to those seeking livelihood opportunities.

Furthermore, the expansion of social safety net programs, encompassing essential provisions such as food subsidies, healthcare access, and unemployment benefits, can serve as a critical safety cushion for marginalized and economically vulnerable populations, ameliorating their struggles and enhancing their overall well-being.

In addition, fostering rural development via dedicated efforts geared toward enhancing infrastructure, which includes the provision of clean water and sanitation facilities, can bridge the rural-urban gap by improving living conditions and boosting economic opportunities in traditionally underserved areas.

Similarly, instituting policies that prioritize progressive taxation and advocate for equitable wealth distribution is essential in addressing the issue of economic inequality, effectively reducing the wealth gap and promoting a fairer, more just society.

Lastly, the promotion of women’s empowerment, through the facilitation of educational and employment opportunities, stands as a potent strategy to combat poverty. This approach not only enhances women’s personal and financial autonomy but also contributes significantly to overall poverty reduction efforts.

Poverty in India is a big problem that has been around for a long time, and it causes many problems. To solve it, we need to use different ways and ideas. India has made progress, but we need to keep working hard, have good leadership, and make fair rules to help many people escape poverty and make society fairer. It’s not just the right thing to do; it’s also essential for India’s future growth and peace.

Poverty in India Essay 500 Words

Below we are covering Poverty in India Essay in 500 Words.

Poverty remains a daunting challenge in India, despite its remarkable economic growth. This essay explores the causes, consequences, and potential solutions to poverty in India essay in 500 words.

Causes of Poverty

Several factors contribute to the persistence of poverty in India. Population growth, often considered a demographic dividend, exerts immense pressure on resources and infrastructure. Economic inequality widens the gap between the rich and poor, while unemployment and underemployment limit income opportunities. Inadequate access to quality education restricts job prospects, especially in rural areas. Additionally, the lack of affordable healthcare services amplifies the financial burden on impoverished individuals. Rural-urban disparities in infrastructure and opportunities further deepen the problem.

Consequences of Poverty

Poverty in India manifests in various detrimental ways. Malnutrition is a pressing concern, particularly affecting children, leading to stunted growth and developmental challenges. Limited access to quality education hampers personal growth and economic mobility. Subpar healthcare infrastructure and sanitation conditions result in higher morbidity and mortality rates among impoverished communities. Social inequality widens, fostering disparities in wealth and access while fueling social unrest. The intergenerational nature of poverty perpetuates its grip, making it challenging to break free from its cycle.

Solutions to Remove Poverty

Addressing poverty in India requires a multifaceted approach. Investment in education and skill development initiatives can empower individuals, enabling them to access better job opportunities and improve their socioeconomic status. The government’s commitment to job creation, particularly in rural areas, is vital for alleviating unemployment and underemployment.

Expanding social safety net programs, including food subsidies, healthcare access, and unemployment benefits, serves as a critical safety cushion for marginalized populations. Rural development efforts, including infrastructure improvements, can bridge the rural-urban gap and enhance economic opportunities in underserved areas.

Implementing policies that promote progressive taxation and equitable wealth distribution can reduce economic inequality and foster a fairer society. Additionally, empowering women through education and employment contributes significantly to poverty reduction efforts.

Conclusion

Poverty in India remains a persistent challenge, but it is not insurmountable. Addressing poverty requires a concerted effort, including investment in education, job creation, social safety nets, rural development, and equitable policies. By tackling poverty comprehensively, India can work toward a fairer and more prosperous future for all its citizens.

Poverty in India Essay 250 Words

Below we are covering Poverty in India Essay in 250 Words.

Poverty is an enduring issue in India, coexisting alongside its economic growth. It signifies the inability to access basic necessities due to financial constraints. This Poverty in India Essay in 250 word covering poverty causes, consequences, and solutions.

Population Growth: Rapid population growth strains resources, making it hard to provide for all.

Economic Inequality: Uneven wealth distribution widens the gap between rich and poor.

Unemployment: High unemployment and underemployment rates limit income opportunities.

Education Gap: Limited access to quality education restricts job prospects, particularly in rural areas.

Healthcare Access: Lack of affordable healthcare leads to reduced income and increased expenses.

R ural-Urban Disparities: Disparities in infrastructure, education, and jobs deepen poverty.

Consequences

Malnutrition: Particularly among children, leading to stunted growth and developmental challenges.

Limited Education: Restricts personal growth and economic mobility.

Health Issues: Subpar healthcare and sanitation lead to higher morbidity and mortality.

Social Inequality: Amplifies wealth and access disparities, potentially leading to social unrest.

Education and Skills: Invest in education and vocational training to enhance employability.

Job Creation: Government-led job initiatives, especially in rural areas, can reduce unemployment.

Social Safety Nets: Expand food subsidies and healthcare access for marginalized populations.

Rural Development: Bridge the rural-urban gap through development and infrastructure investments.

Equitable Policies: Implement progressive taxation and wealth distribution policies.

Women’s Empowerment: Promote women’s education and employment for poverty reduction.

Poverty persists in India despite economic growth. Its causes include population growth, economic inequality, unemployment, limited education, healthcare access, and rural-urban disparities. Consequences range from malnutrition to social inequality. Poverty need not be a permanent feature of India’s landscape, and determined efforts can lead to a brighter and more inclusive future.

Poverty in India Essay FAQs

Poverty in India refers to a condition where individuals lack the financial means to meet basic necessities like food, shelter, education, and healthcare.

Urban poverty in India is increasing due to the rising population in cities, which strains resources and job opportunities, leading to more people living on the brink of poverty.

Consequences of poverty in India include inadequate housing, illiteracy, child labor, unemployment, poor hygiene, malnutrition, and a widening wealth gap.

The MPI, developed by the United Nations Development Programme (UNDP), measures poverty in India by considering various dimensions, including income, access to food, clean water, education, healthcare, and sanitation.

Causes of poverty in India include population growth, economic inequality, unemployment, limited access to quality education, inadequate healthcare infrastructure, and rural-urban disparities.

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Essay on Poverty in India

Essay on Poverty in India

What is Poverty? Poverty is defined as the lack of sufficient money to meet basic needs such as food and shelter. Poverty is a situation in which a person is homeless and has very little money. Due to the growing population in urban areas, India’s poverty rate is rising. The most important fact is that huge numbers of people live in poverty, with the majority living on the edge of it. Poverty in India is mostly observed in rural regions due to a large number of uneducated and unemployed people within the growing population.

Many people cannot afford proper food for their daily lives, and because they do not have their own homes, they sleep on streets or footpaths. As a result, more people require more food, money, and shelter, but poverty grows rapidly due to a lack of these resources. This is why the rich become richer and the poor become poorer, making it difficult to bridge the gap. Poverty has several consequences, including poor housing, illiteracy, increased child labor and unemployment, and poor hygiene. As a result, these poor individuals cannot afford a balanced diet, decent clothes, or a good education for the simple reason that they do not have enough money.

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Ways to Reduce Poverty :

Poverty may be reduced by providing sufficient education and facilities to farmers, allowing them to become more profitable and not feel the need to migrate to cities in search of work. Also, uneducated individuals should receive a good education to improve their lives, and family planning is also necessary for getting out of poverty. Poverty in our country dates back to ancient times, when the poor were not given the same privileges as the wealthy, and they were even denied access to religious places. Unemployment, a lack of education, poor resource utilization, corruption, and poor government policy are all major causes of poverty.

In India, poverty is high when compared to other nations due to the poor growth rate of per capita income per person. Due to a lack of career prospects, many individuals work as rickshaw pullers, construction laborers, domestic servants, and other low-wage jobs, which leads them to live in slum areas.

In addition, lack of land resources has been one of the key reasons for poverty in India; even small farmers in our nation are poor since they cultivate but do not receive fair pay in terms of profit, resulting in poverty.

The population of India as a Major Cause of Poverty :

Since the beginning of time, poverty has been an unavoidable problem. Under British colonial authority, poverty in India worsened from the late 19th century through the early 20th century, peaking in the 1920s. During this time, the colonial government de-industrialized India by restricting the production of finished garments and other goods by Indian craftsmen.

From then till recent times, the situation has been quite the same or has even worsened in many places. In 2013, the Indian government reported that 21.9% of the country’s population lived below the official poverty line. In other words, India, which accounted for 17.5% of the world population, had 20.6% of the world’s poorest people in 2013. Rural areas are home to a huge number of poor people. Poverty is more severe among members of scheduled castes and tribes in the country’s rural areas.

Population Trends in India :

India’s population has been rapidly increasing. In 1991, India’s population was around 84.3 crores, with a high rate of poverty; now, our country’s population is around 130 crores, with the population nearly doubling in the last three decades, but not enough has been done to control poverty in our country. As the population grows, so does unemployment, and poverty is just a reflection of unemployment. More capital is necessary for developing industry, providing adequate transportation, and other projects, as a result of which the country’s deficiency is underdeveloped and more people live in poverty. Lack of skilled labor also contributes to poverty since less-skilled workers lack industrial training and education and miss out on opportunities that more skilled workers can avail. Lack of infrastructure means that transportation and communication have not been properly developed, resulting in farmers receiving fertilisers for cultivation late and industries receiving power and raw materials not on time and thus, end products not being properly marketed and reaching customers on time. Hence, to escape poverty, our government must be more serious, and citizens must share equal responsibility.

Conclusion : Remarkably, as a result of rural-to-urban migration, the incidence of rural poverty has fallen steadily. First and foremost, population growth should be strictly controlled to tackle the serious problem of poverty. Other approaches to fight this problem include expanding work possibilities, educating people, eliminating black money, decentralized planning, and assisting women and youth in becoming self-sufficient. Empowering the weaker and most backward sections of society is also expected to help reduce poverty. We are not failing to achieve our goals owing to a lack of resources or technical support, but rather due to a lack of execution of our plans and programs.

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Essay on Poverty: Samples in 100, 200, 300 Words

Updated on
Oct 14, 2023

Poverty is a deep-rooted problem that continues to affect a large portion of the world’s population today. It touches on several aspects of human life including but not limited to political, economic, and social elements. Even though there are several methods to escape poverty, still issues arise due to a lack of adequate unity among the country’s citizens. Here are some essays on poverty which will give you insights about this topic.

Table of Contents

1 Essay on Poverty in 100 words
2 Essay on Poverty in 200 words
3.1 Reasons Behind Poverty
3.2 World Poverty Conditions
3.3 Role of NGOs to Eradicate Poverty
3.4 What Can be Done by Us?

Essay on Poverty in 100 words

Poverty is defined as a state of scarcity, and the lack of material possessions to such an extreme extent that people have difficulties in fulfilling their basic needs. Robert McNamara, a former World Bank President, states that extreme poverty is limited by illiteracy, malnutrition, disease, high infant mortality rate, squalid conditions of living, and low life expectancy.

In order to eradicate poverty in a country, strict measures need to be taken on all levels. The political system needs to address this issue with utmost sincerity and strategic implementation in such a way that it improves the lives of people, especially the ones living below the poverty line.

Essay on Poverty in 200 words

Poverty is like a parasite that degrades its host and eventually causes a lot of damage to the host. It is basically the scarcity of basic needs that leads to an extremely degraded life and even low life expectancy. It includes a lack of food, shelter, medication, education, and other basic necessities. Poverty is a more serious circumstance where people are forced to starve. It can be caused by a variety of factors depending upon the country.

Every country that is hit with pandemic diseases, experiences an increase in poverty rates. This is because of the fact that poor people are unable to receive adequate medical care and hence are unable to maintain their health. This renders the people powerless and even puts their liberty in jeopardy. This is because of the fact that poor people can become trapped in a vicious cycle of servitude. The condition of poverty is a distressing one that causes pain, despair, and grief in the lives of the ones it affects.

This is also a negative scenario that prevents a child from attending basic education. It’s the lack of money that prevents people from living sufficiently. Also, it is the cause of more serious social concerns such as slavery, child labour, etc. Hence action is needed on the same with utmost sincerity.

Essay on Poverty in 300 words

Poverty is a multifaceted concept that includes several aspects such as social aspects, political elements, economic aspects, etc. It is basically associated with undermining a variety of essential human attributes such as health, education, etc. Despite the growth and development of the economies of countries, poverty still exists in almost every one of them.

Reasons Behind Poverty

There are several contributing reasons behind poverty in a nation. Some of them are mentioned below:-

Lack of literacy among citizens
Lack of Capital in the country
Large families and a rapidly growing population
Limited employment opportunities

There are even urban areas where the slum population is increasing. These are deprived of many basic amenities such as sanitation, drainage systems, and low-cost water supply, etc.

World Poverty Conditions

According to UNICEF , around 22000 children lose their lives each day due to poverty. There are approximately 1.9 billion children in developing countries in the world and India is also among them. Out of these, approximately 640 million don’t have a proper shelter, 270 million are living without medical facilities, and approximately 400 million don’t have access to safe water. This worldwide situation is growing at a fast pace.

Role of NGOs to Eradicate Poverty

The approaches by NGOs basically include helping the poor by providing various public services such as medical services etc.

They also play a major role in mobilizing the services recommended by the government. They have various approaches and strategies that directly help the poor in various ways.

What Can be Done by Us?

We help in eradicating poverty by increasing employment opportunities.

Ensuring financial services and providing the same is another such measure that can be taken.

Recognizing social entrepreneurs as people of influence, conveying to them the seriousness of this situation, and then eventually making people aware of the same is another thing that can be done.

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Writing an essay on poverty in 200 words requires you to describe various aspects of this topic such as what causes poverty, how it affects individuals and society as a whole, etc. The condition of poverty is a distressing one that causes pain, despair, and grief in the lives of the ones it affects.

An essay on poverty may be started as follows:- Poverty is a deep-rooted problem that continues to affect a large portion of the world’s population today. It touches on several aspects of human life including but not limited to political, economic, and social elements. Even though there are several methods to escape poverty, still issues arise due to a lack of adequate unity among the country’s citizens.

Poverty in 100 words: Poverty is defined as a state of scarcity, and the lack of material possessions to such an extreme extent that people have difficulties in fulfilling their basic needs. Robert McNamara, a former World Bank President, states that extreme poverty is limited by illiteracy, malnutrition, disease, high infant mortality rate, squalid conditions of living, and low life expectancy. In order to eradicate poverty in a country, strict measures need to be taken on all levels. The political system needs to address this issue with utmost sincerity and strategic implementation in such a way that it improves the lives of people, especially the ones living below the poverty line.

For more information on such interesting topics, visit our essay writing page and follow Leverage Edu .

Deepansh Gautam

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Is today’s India more unequal than under British rule?

India’s top 1 percent holds more income today than it did under the British, new research shows. The middle class is the worst affected. Is a tax for the super-rich the answer?

A man distributes food to homeless people on a pavement during a nationwide lockdown to curb the spread of new coronavirus in Gauhati, India, Sunday, April 19, 2020. (AP Photo/Anupam Nath)

New Delhi, India — In 2014, Narendra Modi swept to power in India with his Bharatiya Janata Party (BJP) pitching him as an economic reformer who would root out corruption and rescue the aspirations of India’s middle class from the clutches of elites – as well as the hellscape of rising prices and unemployment.

Ten years later, as Modi contests for a rare third term , the gap between rich and poor in India – already significant in 2014 – has widened into a canyon, economic researchers warn. India’s income and wealth inequality have become among the highest in the world, worse than in Brazil, South Africa and the United States, reveals a new study by the World Inequality Lab (WIL).

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As India votes in national elections to choose its next government, the research in the recently published The Rise of the Billionaire Raj shows that income inequality in the country is, in fact, worse than it was under British colonial rule. The study was co-authored by Nitin Kumar Bharti from New York University’s Abu Dhabi campus; Lucas Chancel from Harvard Kennedy School; and Thomas Piketty as well as Anmol Somanchi of the Paris School of Economics.

The widening wealth gap in India has emerged as a political flashpoint, with the opposition Congress Party promising that if elected, it will carry out a caste census that it claims will show how traditionally disadvantaged communities have suffered under Modi’s rule.

But just how unequal is India, according to the new research? What are the reasons? And what are the potential solutions?

INTERACTIVE_US_ARRESTS_APRIL28_2024 copy-1714372874

Worse income inequality than under the British?

Through much of the 1930s, when the British ruled India – which was known as the crown in the jewel of the empire – the richest 1 percent held just more than 20 percent of the national income. That share dropped during World War II, reaching to just above 10 percent through most of the 1940s, and about 12.5 percent in 1947 when India gained independence.

It hovered there until the late 1960s. Then, as India implemented a series of broadly socialist moves under then-Prime Minister Indira Gandhi – payments made to formal princely kingdoms, as compensation to get them to accede were scrapped, and banks were nationalised, among other steps – the national income share of the top 1 percent collapsed to about 6 percent by 1982.

As India liberalised its economy in 1991, things started to change. By the turn of the century, the 1 percent held more than 15 percent of India’s income. By the time Modi came to power in 2014, that figure had crossed 20 percent.

And by 2022-2023, it touched an unprecedented 22.6 percent.

India’s fast-growing economy – its gross domestic product (GDP) is growing by more than 7 percent annually – only appears to be accelerating that gulf, researchers say.

“When the economy grows faster, then a pie growing bigger quickly also leads to increasing inequality,” Bharti, the lead author of the WIL study, told Al Jazeera. “We thought that the free market would take care of it but it has not.”

What about wealth inequality?

If India’s income inequality is vast, its wealth imbalance is starker . The top 1 percent controlled less than 15 percent of the national wealth in 1961, when the researchers began their analysis. Today, their share is at more than 40 percent.

The richest saw their relative wealth stay mostly static during the pre-liberalisation period, before it took off in 1991, crossing 20 percent before the turn of the century. It stood between 30 and 35 percent when Modi took office – and when the prime minister convinced India that he would deliver them from their economic struggles.

Yet, a decade later, as Modi campaigns for re-election, the mounting inequality suggests that many Indians are struggling as much, if not more, than they were in 2014. Whether that will affect the ongoing election though is unclear, said development economist Jayati Ghosh, a professor of economics at the University of Massachusetts Amherst.

“It is the same electorate that was addressing the major economic issues until 2014, like corruption, economic stagnation, unemployment, poor livelihood, inadequate public services,” said Ghosh.

But Modi’s campaign, in recent days, has shifted towards religious polarization and strayed far from the economic promises of 2014. For instance, Modi accused the opposition Congress Party of plotting to give Indian Muslims first rights over national resources, and apparently referred to Muslims as “infiltrators”.

“The current regime is obsessed with narratives,” said Ghosh. “The common man is far away from the dark reality.”

INTERACTIVE_INDIA_INCOME_INEQUALITY_APRIL29_2024 _2-1714372870

Shrinking middle-class income share?

If the top 1 percent hold more than one-fifth of the national income, the top 10 percent control almost 60 percent, the study reveals . In the years after independence, that figure for the top 10 percent had fallen to 30 percent in 1982, before picking up, especially after the 1991 liberalisation measures.

The top 10 percent also hold about 65 percent of the nation’s wealth.

The accumulation of income and wealth in a few hands has come at the cost of the remaining 90 percent. But the data show that it is the middle 40 percent of Indians whose share of national income has shrunk the most, faster than even the bottom 50 percent of the country’s adult population, said Bharti.

The national income share of the middle 40 percent of Indians fell from above 45 percent in the early 1980s to about 27 percent in 2022. For India’s poorest half of the population, the share of national income fell from above 23 percent to 15 percent in this period.

That prospects of relative upward mobility have slowed – not improved – for the Indian middle class is not surprising, experts say.

Rishabh Kumar, an assistant professor of economics at the University of Massachusetts Boston, whose research focuses on historical inequality, underlined that the privatisation of the Indian economy, coupled with globalisation, favoured those with a higher level of education, which allowed them to compete internationally. And in India, that kind of education access has traditionally been skewed towards the wealthy and upper-caste communities.

“The only opportunity for transformation for anyone in the middle class is to play a lottery and get into one of these very few institutions that can propel you to a white-collar job,” Kumar said.

That lottery is paying off for only a few. Consider this: The richest 10,000 Indians have an average income of 480 million rupees ($5.7m) a year – more than 2,000 times the average income of Indians.

The national average income itself, of about 200,000 rupees ($2,400) per year, is misleading, because, as Kumar points out, the new research shows that only individuals on the cusp of entering into the top 10 percent earn that much. “So 90 percent of the population is not even making the GDP per capita of India [the same as the national average income],” Kumar said.

“This paper is a reality check for a lot of Indians about the distribution of goods in the present society,” said Kumar. “And clearly, the rich are benefitted more than the others in India.”

Ivanka Trump arrives to attend a pre-wedding bash of billionaire industrialist Mukesh Ambani's son Anant Ambani, in Jamnagar, India, Friday, March 1, 2024. (AP Photo/Ajit Solanki)

Crazy-rich Indians, desperately-poor Indians

Just how good are things for the very wealthiest of Indians? The rest of the country got a three-day-long peek as many of the world’s top-1-percenters gathered in early March for the pre-wedding celebrations of Anant Ambani, the son of Asia’s richest man Mukesh Ambani , which cost a whopping $120m. The national media gave a detailed breakdown of the meals on offer, dish by dish, which a Guardian writer noted , “even Nero might have thought a little over the top”.

With a private Rihanna concert, where attendees included Bollywood A-listers, Mark Zuckerberg and Ivanka Trump among others, the extravaganza was an exhibition of the dramatically widening income gulf in India.

When India’s economy liberalised in 1991, it had one dollar billionaire. That rose to 52 in 2011, then 162 in 2022, according to the new study. Since then, that number has exploded further to 271 – third behind only China and the US – according to the Hurun Global Rich List for 2024.

Between 2014 and 2022, the net wealth of Indian billionaires grew by more than 280 percent – 10 times faster than the growth in national income over this period, by 27.8 percent, as per the annual Forbes lists of the richest individuals in the world.

On the other hand, India is home to a quarter of all undernourished people worldwide and scored 28.7 out of 100 on the 2023 Global Health Index Severity of Hunger Scale. Between 2019 and 2021, approximately 307 million Indians experienced severe food insecurity (not having enough to eat), while 224 million people were affected by chronic hunger.

The WIL report captures other indicators of India’s sharpening inequality, too: It cites other research that shows how just 1 percent of Indians take 45 percent of all flights in the country; only 2.6 percent of Indians invest in mutual funds; and 6.5 percent of Indians are responsible for 45 percent of all digital payments.

The divide extends to the dining table: 5 percent of users account for a third of all orders on Zomato, India’s largest food delivery app.

The concentration of wealth at the top is a pattern also visible within the top 10 percent, Bharti said. “We see largely similar trends for the top 0.1 percent, top 0.01 percent, and top 0.001 percent,” he said.

Looking back at the BJP’s 2014 poll promises, Bharti said that “what we are actually observing 10 years later in terms of inequality is exactly the opposite of the pitch, with the middle 40 percent losing and the top 1 percent gaining”.

“[The BJP government] has created a small set of the population who are super wealthy where a lot of wealth accumulation is happening,” he added.

Kumar, the associate professor of economics, agreed: “Most of the buyer growth is going to somebody else and much of this growth is very concentrated.” As a result, he said, “we can just see the rich getting richer at a faster pace than everyone else”.

This is leading to a scenario where even the modest dreams many poorer Indians once harboured appear to be in crisis.

“Things that used to be the aspirational purchases of the relatively poor, like a two-wheeler, have stagnated,” said Ghosh, the economist, referring to periods in recent years when sales of scooters and motorcycles have struggled – even as sales of luxury goods, by contrast, appear to have done relatively well.

“That clearly shows the inequality of income and wealth. You are selling Mercedes but not motorcycles.”

INTERACTIVE_INDIA_INCOME_INEQUALITY_SUPERRICH INDIA

Why has inequality worsened?

At least some of the factors driving this deepening income gulf are structural and linked to India’s broader journey since it liberalised its economy in 1991, experts say.

India has struggled to pull the 45 percent of its workforce involved in agriculture towards more productive and better-paying employment, in part because its education system has focused less on them and more on the “tertiary education of elites”, said Bharti.

In essence, Ghosh said, India’s economic boom over the past quarter of a century has been “based on inequality because it just benefitted the top 10 percent while the formal economy has sustained on unpaid and underpaid labour”.

But global events and Indian policies in recent years have also compounded these challenges.

“Unfortunately, three big policy shocks – demonetisation, introduction of GST (Goods and Service Tax) and the COVID-19 lockdown – really hit the informal sector disproportionately,” Ghosh said. “[The Modi government] attacked the livelihood and employment of the dominant part of the workforce with no remedies.”

Demonetisation refers to the overnight announcement by Modi, in 2016, that all high-value current notes would be discontinued. This led to a crisis that hit the small savings of millions of Indians and the liquidity of vast swaths of India’s small-scale industries.

The Modi government introduced a GST in July 2017. And in the spring of 2020, as COVID-19 started spreading, the government imposed a nationwide lockdown that it said was needed to limit the reach of the pandemic – but that cost tens of millions of migrant workers their jobs and crippled small-scale businesses.

The WIL study also observed that the Indian income tax system might be regressive when viewed from the point of view of net wealth – that is, the more wealth taxpayers own, the less taxes they pay as a share of their assets.

FILE- Adani Group Gautam Chairman Gautam Adani, left, Reliance Industries Chairman Mukesh Ambani, center, and Mahindra Group Chairman Anand Mahindra interact as they attend 'UP Investors Summit 2018' in Lucknow, India, Feb. 21, 2018. Asia’s richest man, Gautam Adani, made his vast fortune betting on coal as an energy hungry India grew swiftly after liberalizing its economy in the 1990s. He's now set his sights on becoming world's biggest renewable energy player, by 2030, adroitly aligning his investments with the government’s own priorities. (AP Photo/Rajesh Kumar Singh, File)

So what’s the solution? Eat the rich?

The authors of the WIL study have called for the implementation of a “super tax” of 2 percent on dollar billionaires and multimillionaires as “a tool to fight inequality”, in addition to restructuring the tax schedule to include both income and wealth.

According to Bharti, the solution to inequality lies in education. “India needs to create the right set of human capital depending upon the jobs you want to create and align them,” he said. “[The government] needs to adapt the education system vis-a-vis market or India will keep producing unemployable graduates.”

Meanwhile, the Communist Party of India (CPI) – a small but not insignificant presence in the country’s political landscape – proposed a “wealth tax and inheritance tax” to keep the nature of the economy “more equal, just, and egalitarian” in its 2024 election manifesto.

“Unemployment and price rise have become the biggest woes for the people. BJP’s rule has resulted in unprecedented concentration of wealth at the top while the poor are pushed to destitution,” said the party’s general secretary, D Raja.

The manifesto of the Congress Party, the country’s main opposition, said it was “opposed to monopolies and oligopolies and crony capitalism”, promised to “re-set the economic policy”, and tackle the BJP’s legacy of “job-loss growth”. Yet, after Modi attacked the Congress, suggesting that it wanted to take wealth from families and give it to Muslims, the opposition party has said it has no wealth redistribution plans.

Asim Ali, a political commentator, said a “relative absence of popular movements led by the opposition” allows Modi and the BJP to largely evade questions on inequality by focusing on Hindu majoritarian politics. That is why, “these adverse economic conditions will not necessarily hamper [the BJP] in the coming election”, he said.

To Ghosh, the rising inequality is unsustainable for the Indian economy and society. “I do not think this inequality can continue indefinitely but when it will change – who knows?”

Inheritance tax cannot remove inequality, India's Modi says

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Indian PM Modi attends an election campaign rally, in Meerut

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India's Prime Minister Narendra Modi during an election campaign rally in Himmatnagar

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How A.I. Tools Could Change India’s Elections

Avatars are addressing voters by name, in whichever of India’s many languages they speak. Experts see potential for misuse in a country already rife with disinformation.

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By Suhasini Raj

Reporting from Pushkar, India

For a glimpse of where artificial intelligence is headed in election campaigns, look to India, the world’s largest democracy, as it starts heading to the polls on Friday.

An A.I.-generated version of Prime Minister Narendra Modi that has been shared on WhatsApp shows the possibilities for hyperpersonalized outreach in a country with nearly a billion voters. In the video — a demo clip whose source is unclear — Mr. Modi’s avatar addresses a series of voters directly, by name.

However, it is not perfect. Mr. Modi appears to wear two different pairs of glasses, and some parts of the video are pixelated.

Down the ladder, workers in Mr. Modi’s party are sending videos by WhatsApp in which their own A.I. avatars deliver personal messages to specific voters about the government benefits they have received and ask for their vote.

Those video messages can be automatically generated in whichever of India’s dozens of languages the voter speaks. So can phone messages by A.I.-powered chatbots that call constituents in the voices of political leaders and seek their support.

Such outreach requires a fraction of the time and money spent on traditional campaigning, and it has the potential to become an essential instrument in elections. But as the technology races onto the political scene, there are few guardrails to prevent misuse.

Chatbots and personalized videos may seem more or less harmless. Experts worry, however, that voters will have an increasingly difficult time distinguishing between real and synthetic messages as the technology advances and spreads.

“It’ll be the Wild West and an unregulated A.I. space this year,” said Prateek Waghre, the executive director of the Internet Freedom Foundation, a digital rights group based in New Delhi. The technology, he added, is entering a media landscape already polluted with misinformation.

Around the world, elections have become a testing ground for the A.I. boom. The tools have been used to turn an Argentine presidential candidate into Indiana Jones and a Ghostbuster. During the New Hampshire primary, voters received robocall messages urging them not to vote, in a voice that was most likely artificially generated to sound like President Biden’s.

And in India, Mr. Modi’s Bharatiya Janata Party, or B.J.P., and the opposition Indian National Congress party have accused each other of spreading election-related deepfake content online.

One outpost on this new Indian frontier is in the western desert state of Rajasthan. On the ground floor of a residential building on a dusty back lane, a 31-year-old college dropout, Divyendra Singh Jadoun, operates an A.I. start-up, The Indian Deepfaker.

His team of nine people has been making commercials with A.I.-generated avatars of Bollywood actors and actresses. But earlier this year, political parties and politicians began asking him to do for them what he had done for celebrities. Of the 200 requests, Mr. Jadoun said, he took on 14.

Among those getting the A.I. treatment is Shakti Singh Rathore, a 33-year-old B.J.P. member. His job this election season is to tell as many people as possible about Mr. Modi’s programs and policies. So he decided to create a replica of himself.

“A.I. is wonderful and the way forward,” Mr. Rathore said as he settled in front of a video camera at the office of The Indian Deepfaker, preparing to become digitally incarnated. “How else could I reach the beneficiaries of Mr. Modi’s programs in such large numbers and in so short a period of time?”

As Mr. Rathore adjusted a saffron scarf with the party’s logo that hung around his neck, Mr. Jadoun instructed him, “Just look into the camera and talk as if the person is sitting right in front of you.”

With about five minutes’ worth of material, including an audio recording and profile shots, Mr. Jadoun went to work. He said he uses open-source A.I. systems and builds upon them with his own code.

First, Mr. Rathore’s face was isolated from each frame of the recording.

Then data was collected from his facial features, including the size of his face and lips, as well as his gaze.

Mr. Jadoun said the data set was then fed into A.I. models that learn to predict facial patterns.

“You need to keep running it through the program and fine-tuning the face until you get the best face possible,” he said.

A “cloning algorithm” also analyzed the audio recording, learning the voice’s cadence and intonations. Mr. Jadoun said it often takes six to eight hours of tweaking to perfect the face and for the lips to sync with the words. The rest is largely automated.

In one demo, it took about four minutes to create around 20 personalized greeting videos.

Mr. Jadoun said his team could produce up to 10,000 videos a day. For larger jobs on deadline, it will rent graphics processing units.

Generative A.I. can also remove language barriers, which is especially helpful in a linguistically diverse country. Mr. Rathore’s avatar can be programmed to speak regional languages to reach the remotest corners of India.

Political parties are not only texting constituents video messages but also using cloned voices to call people directly, all powered by chatbots like ChatGPT.

In the past, when a party representative would call voters, they would hang up, Mr. Rathore said. “But now, when a local leader utters a voter’s name, it immediately catches their attention.”

During the conversation, the chatbot asks about local government programs that offer free electricity or funding for start-ups. Mr. Jadoun said the calls were recorded and transcribed for quality control and A.I. training.

Mr. Rathore said he had spent around $24,000 of his own money to reach about 1.2 million people through his video messages and phone calls and to receive information about who didn’t answer. He called it an investment in his future with the B.J.P.

Nikhil Pahwa, the editor of MediaNama, which covers digital media in India, said the personalized messages could be particularly powerful among Indians.

“India is a country where people love to take photos with celebrity impersonators,” he said. “So if they receive a call from, say, the prime minister, and he speaks as if he knows them, where they live and what their issues are, they would actually be thrilled about it.”

Mr. Waghre of the Internet Freedom Foundation questions whether A.I. content is persuasive enough to affect this year’s election. But he said the long-term effects could be problematic. “Once you normalize this in people’s information diet, what happens six months later when there are deceptive videos?” he said.

Mr. Modi himself has discussed adding disclaimers to A.I.-generated content so people are not being “ misguided .” Mr. Jadoun and representatives of two other A.I. start-ups in India created what they call an “ A.I. coalition manifesto ,” pledging to protect data privacy and uphold election integrity. For instance, Indian Deepfaker videos are labeled “A.I. generated,” and its chatbots announce that they are A.I.-generated voices, Mr. Jadoun said.

Narendra Singh Bhati, 28, the owner of resorts in Rajasthan, received an A.I.-generated call from Mr. Rathore this week. Mr. Bhati said he was impressed with its personalization.

He said he had not realized that the call was A.I.-generated, although the script made that clear. “I even said goodbye to Mr. Rathore” at the end, Mr. Bhati said.

Suhasini Raj is a reporter based in New Delhi who has covered India for The Times since 2014. More about Suhasini Raj

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