Poverty in India: Challenges and Solutions

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The document discusses poverty in India, defining it as a lack of basic necessities and highlighting its economic and social dimensions. It notes that approximately 30 crore people live in poverty, with significant disparities across states and social groups, particularly among Scheduled Castes and Tribes. The government has implemented various poverty alleviation programs, but challenges remain in addressing regional disparities and ensuring access to healthcare, education, and job security.

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Class 09 Social Science

Revision Notes
Chapter 3
Economics - POVERTY AS A CHALLENGE

In our daily life we come across many poor people such as land less labourers
in villages, people living in jhuggis, daily wage workers at construction sites,
child labourers in dhabas, rickshaw-pullers, domestic servants, cobblers,
beggars, etc.

About 30 crore people live in poverty.

Poverty : Usually the levels of income and consumption are used to define
poverty. In India, poverty can be defined as the lack of common things like
food, clothing and shelter , safe drinking water, medical care and education,
which determine quality of life.

Poverty has both dimensions economical and social.

Other Indicators of Poverty: Now poverty is looked through other social


indicators like illiteracy level, lack of access to health care, lack of job
opportunities, lack of access to safe drinking water, sanitation, etc. Nowadays,
the concept of social exclusion is becoming very common in the analysis of
poverty.

Social exclusion means , generally poor are excluded in the community of


better off people.

Vulnerability

Vulnerability describes the greater probability of certain communities or


individuals of becoming, or remaining, poor in the coming years.

The people from backward cast, individuals like widows, physically


handicapped are more vulnerable.

They possess greater risks at the time of natural disasters.


Poverty Line

It is based on the income or consumption level.

A person is considered poor if his or her income or consumption level falls


below a given 'minimum level' necessary to satisfy basic needs.

Poverty line varies with time place.

For the year 2009-10, the poverty line for a person was fixed at Rs.673 per
month for rural area and Rs. 860 for the urban areas.

The poverty line is estimated periodically by conducting sample surveys by


National Sample Survey Organisation. ( NSSO)

Estimates of Poverty: The incidence of poverty in India was around 55 per


cent in 1973 which declined to 36 per cent in 1993 and further to 26 per cent
in 2000.

The poverty in India is reduced percent wise but number wise it is huge.

Social groups which are most vulnerable to poverty are Scheduled Caste and
Scheduled Tribe households.

Inequality of Incomes within a Family: In poor families, old people, women


and female children are denied equal access to family’s available resources.
They are the poorest of the poor.

Inter-State Disparities : The proportion of poor people is not the same in


every state. In 20 states and union territories the poverty ratio is less than the
national average. Orissa and Bihar are the poorest states of India with poverty
ratios of 47 per cent and 43 per cent respectively. Lowest incidence of poverty
is found in Jammu and Kashmir with poverty ratio of just 3.5 per cent.

Global Poverty Scenario: There has been substantial decline in global


poverty. However, it is marked with great regional differences. Poverty has
declined more in China and South-East Asian countries.

World bank has defined poverty as the people earning less than 1.25 $ per
day.

The Millennium Development Goals of the United Nations call for reducing the
proportion of people below poverty line to half the 1990 level by 2015.
Causes of Poverty : There are a number of causes for the widespread
poverty in India.

One historical reason is the low level of economic development under the
British colonial administration.

There are some other reasons.

These are :

1. Rapid growth of population, particularly among the poor is considered a


major cause of Indian poverty.

2. Our agricultural sector has failed to generate much employment


opportunities for the farm labourers. Similarly, our industries could not provide
much job for the job seekers.

3. One of the major causes of poverty is the unequal distribution of


land and other resources. Various land reform measures introduced after
Independence could not improve the life of millions of rural poor because of
their poor implementation.

4. Social factors: People in India, including the very poor, spend a lot of
money on social occasions like marriages, festivals, etc. Poor people hardly
have any savings; they are, thus forced to borrow. Unable to pay because of
poverty, they became victims of indebtedness.

Joint family system has prevented people from doing hard work.

• Steps taken by the Government for Poverty Alleviation

Our government’s strategy to poverty reduction has been twofold. One,


promotion of economic growth and, two, targeted poverty alleviation
programmes.

Poverty Alleviation Programmes: To address the poor, a need for targeted


anti-poverty programmes was strongly felt.

Some of them are given below :

1. Prime Minister Rojgar Yojana (PMRY): The aim of this programme (which
was started in 1993) was to create self-employment opportunities for
educated unemployed youth in rural areas and small towns.
2. Rural Employment Generation Programme (REGP): REGP was
launched in 1995 to create self-employment opportunities in rural areas.

3. Swarna Jayanti Gram Swarojgar Yojana (SGSY): SGSY was started in


1999. The programme aims at bringing the assisted poor families above the
poverty line.

4. Pradhan Mantri Gramodaya Yojana (PMGY) was launched in 2000.

5. Antyodaya Anna Yojana (AAY) for ‘the poorest of poor’s and elders.

6. National Food for Work Programme (NFWP) was launched in 2004.

7. National Rural Employment Guarantee Act (NREGA) was passed in


September 2005. The Act provides 100-days assured employment every year
to every rural household in 200 districts.

• The Challenges Ahead : Though poverty has declined in India, poverty


reduction remains India’s most compelling challenge. We will have to do
something special to fight against wide regional disparities. We must
broaden the definition of poverty from ‘a minimum subsistence level of
living to a reasonable level of living’. Bigger challenges before us are:
providing health care, education and job security for all the achieving
gender equality.

Common questions

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Vulnerability contributes to the persistence of poverty in India by increasing the risk that certain communities or individuals will either fall into poverty or remain in a state of poverty. People from backward castes, widows, and the physically handicapped are more vulnerable to economic and social hardships, such as natural disasters, due to having fewer resources and opportunities to mitigate these risks. This increased vulnerability means that these groups have a higher probability of experiencing poverty, making it more challenging for them to improve their living conditions .

Changes in poverty statistics since the 1970s reflect India's socioeconomic transformations, illustrating a general decline in poverty from 55% in 1973 to 26% in 2000. This trend demonstrates the impacts of economic reforms, greater industrialization, and increased agricultural productivity, which have collectively contributed to a better standard of living for many citizens. The reduction in poverty levels underscores improvements in economic policies and targeted government intervention strategies aimed at sustainable development. Nevertheless, despite these transformations, the absolute number of poor remains significant, reflecting ongoing challenges in equitable growth .

India's targeted poverty alleviation programs have had mixed effectiveness. Programs like the Prime Minister Rojgar Yojana and the National Rural Employment Guarantee Act have created employment and self-employment opportunities for the unemployed, offering necessary support to raise families above the poverty line. However, factors such as insufficient resources, inadequate implementation, and widespread corruption have limited their overall impact. Moreover, state-level disparities suggest that although these programs play a significant role in poverty reduction, they require more cohesive targeting and better integration with regional policies aimed at addressing unique local needs to enhance their effectiveness .

Global trends in poverty, such as the substantial declines observed in China and South-East Asian countries, have influenced India's policy approaches by highlighting the effectiveness of strategies focused on industrialization and economic liberalization. These international lessons have guided India toward promoting economic growth and implementing poverty alleviation programs. The alignment with global initiatives like the United Nations' Millennium Development Goals also drove India to focus on concrete targets like halving poverty levels, thus incorporating international frameworks into its national policy priorities .

The concept of the poverty line plays a crucial role in assessing poverty in India by providing a measurable benchmark for determining who falls below a minimum standard of living, based on income or consumption levels. It allows for systematic sampling and comparison over time to track progress in poverty reduction. The poverty line varies between rural and urban areas to account for differing costs of living, as reflected in the 2009-10 poverty line figures, where rural residents were considered poor if they earned less than Rs. 673 per month, while urban residents had a higher threshold at Rs. 860 per month .

Inter-state disparities have significantly affected the fight against poverty in India by creating uneven progress across different regions. Some states, like Orissa and Bihar, exhibit high poverty ratios (47% and 43%, respectively), which indicates a larger population of people living below the poverty line compared to states with lower ratios like Jammu and Kashmir. This uneven distribution in poverty levels suggests that efforts to combat poverty need to be tailored to the specific needs and challenges of each state, as national averages may not reflect the real conditions and needs in harder-hit regions .

Social exclusion compounds the problem of poverty in India by isolating poor individuals and communities from mainstream society and its socioeconomic benefits. Those who are socially excluded often lack basic access to education, healthcare, and employment opportunities because they are excluded from participating fully in the economy and community life. This systemic exclusion not only perpetuates poverty but also weakens the structural links that could support the poor in climbing out of poverty. Social isolation also affects their ability to gain political voice and representation, undermining efforts to address their specific needs .

One of the primary challenges for India in redefining and addressing poverty beyond mere income levels is the need to ensure access to essential services such as healthcare, education, and job security for all. This broader definition of poverty requires policy changes that extend beyond financial metrics to include social indicators and quality of life measures. Additionally, India needs to tackle gender inequality and regional disparities in development to create a more equitable national landscape. Institutional reforms and innovation in policy implementation are necessary to address these multi-dimensional aspects of poverty effectively .

The main criticisms of land reform measures in India related to poverty alleviation focus on their poor implementation leading to minimal actual change for India's rural poor. Despite these reforms being intended to redistribute land and provide greater access to resources and opportunities, inadequate enforcement, corruption, resistance from wealthy landowners, and loopholes in legal frameworks have largely nullified their intended effects. As a result, land inequality persists, hindering efforts to address rural poverty and leaving many landless laborers without the means to escape poverty .

Rapid population growth significantly impacts poverty levels in India by increasing the number of individuals competing for limited resources and job opportunities. With a larger population, especially among poorer segments, there is greater pressure on public services like healthcare, education, and infrastructure, which are critical for improving quality of life and economic conditions. This demographic trend exacerbates poverty by straining the distribution of resources and limiting improvements in individual productivity and household income, thus maintaining high poverty levels .

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