poverty essay upsc

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Poverty and Developmental Issues

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Indian Society

Table of Contents

• What is poverty
• What are the distinct characteristics of poverty in India
• What are the factors contributing to poverty in India
• What are the developmental issues which arise due to poverty in India
• How is poverty in India related to its demography
• What measures can help to alleviate poverty in India

Prelims: Economic and Social Development - Poverty

Mains: Poverty and developmental issues

What is poverty?

Poverty is a situation where individuals, households or communities lack the necessary resources to meet their basic needs for food, shelter, clothing, healthcare, and education .

According to the World Bank, “Poverty is hunger . Poverty is a lack of shelter. Poverty is being sick and not being able to see a doctor. Poverty is not having access to school and not knowing how to read. Poverty is not having a job; it is fear for the future, living one day at a time. Poverty is losing a child to illness brought about by unclean water. Poverty is powerlessness, lack of representation, and freedom".

What is the status of poverty in India?

• Incidence of poverty:  

• According to the MPI report by NITI Aayog in 2021, 25.01% of the population in India was multidimensionally poor.
• Intensity of poverty: The number of extremely poor in India has decreased by 12.3% between 2011 and 2019 (World Bank).
• Multidimensional Poverty: India has also shown improvement in multidimensional poverty rate as below:
• 18.7% is classified as vulnerable to multidimensional poverty (260.9 million people in 2020).
• Regional variations : According to National MPI, there are significant regional variations in poverty rates across states in India. 

What are the distinct characteristics of poverty in India?

Some of the important characteristics of poverty in India are:

• The poverty ratio was as high as 32.75% in rural areas compared to  8.81% in urban areas. (NITI Aayog MPI, 2021)
• 5% of the population own more than 60% of the country’s wealth (Oxfam report 2022)
• Lack of education : Poverty is closely linked to lack of education in India. The literacy rate in rural areas is lower than in urban areas, and illiteracy often leads to limited job opportunities and low wages.
• Health problems : Poverty is associated with poor health outcomes in India, including malnutrition, high infant mortality rates, and a higher prevalence of diseases such as tuberculosis.
• Scheduled Castes still constitute almost one-fourth of India’s multidimensionally poor people. (Global MPI 2021)
• Gender Inequality : India also struggles with gender inequality, which can contribute to poverty among women. Women often face discrimination in education, employment, and healthcare, which can limit their opportunities and exacerbate poverty.
• Informal Economy: A major portion of India's workforce is employed in the informal sector. This leads to low wages, poor working conditions, lack of social protections, difficulty in accessing financial services, etc.

What are the factors contributing to poverty in India?

The following can be some of the reasons leading to poverty in India:

• Population explosion : The rapid growth of the population puts constraints on limited resources. This leads to people being deprived of basic necessities.
• Lack of Agricultural productivity : Fragmented holdings, use of traditional methods, obsolete technology, etc., leads to low agricultural productivity. This reduces income levels and pushes vulnerable sections into poverty.
• Lack of education : It creates a vicious cycle of poverty where a person is not able to afford basic necessities.
• Lack of employment opportunities : Job opportunities have not kept pace with the increasing population leading to poverty. Further lack of skilling or low skilling compounds this.
• Inadequate WASH (Water, Sanitation, and Hygiene) facilities: People living in rural areas, urban slums, disaster-prone areas, etc., are the most vulnerable and the most affected due to the lack of WASH facilities leading to poverty.
• Climate change : climate change affects the poor disproportionately due to lack of information about weather events, lack of access to basic facilities, etc.
• Social factors : Certain sections of society are more vulnerable to poverty due to caste and class dynamics, traditional structure, etc.
• Low per capita income: India is a developing country with a low per capita income. Many people in India live on less than $2 a day.

What are the developmental issues which arise due to poverty in India? 

High poverty prevalence in India can have a range of consequences like

• Example : India has the highest number of stunted children in the world, accounting for nearly a third of the global total. (Global Nutrition Report 2020)
• Children from poor families often drop out of school to work and earn money.
• Example : IMR is 35.2 as per National Family Health Survey 5(2019-21)
• Social exclusion : Poverty can lead to social exclusion, as individuals and households may be unable to participate fully in social and economic activities.
• Increased crime rates : Poverty can lead to increased crime rates, as individuals may resort to criminal activity as a means of survival.
• Inadequate housing and sanitation: Lack of access to basic amenities like clean water, sanitation facilities, and adequate housing among the poor can lead to a range of health problems, including diarrhea and other water-borne diseases.
• Gender inequality: Poverty in India disproportionately affects women and girls. Girls are often denied access to education and are more likely to be married off at a young age. Women are also more likely to work in low-paid and insecure jobs.
• Environmental degradation: Poverty often leads to unsustainable practices, such as overuse of natural resources and deforestation, which can have a detrimental effect on the environment. 
• Internal migration: Poverty also leads to people migrating from rural areas to urban centers in search of better economic opportunities. This leads to a rise in the informal sector and the growth of slums in urban areas.

How is poverty in India related to its demography?

The relationship between demography and poverty is complex. Both reinforce each other creating a vicious cycle. 

What measures can help to alleviate poverty in India?

• Investing in education: Providing access to education and vocational training can help individuals acquire the skills and knowledge needed to secure better-paying jobs.
• Promoting economic growth: Fostering economic growth through policies that promote entrepreneurship, innovation, and investment can create new job opportunities and lift people out of poverty.
• Providing access to basic services : Providing access to basic services such as healthcare, clean water, sanitation, and electricity can improve health outcomes, particularly in rural areas.
• Proper implementation of social protection programs : Accountable and transparent implementation of social protection programs such as cash transfers, food subsidies, and public distribution programs can provide a safety net for individuals and households living in poverty.
• Promoting gender equality: It can help to reduce poverty, as women often face greater barriers to education, healthcare, and economic opportunities.
• Strengthening agricultural productivity : It can help to reduce poverty in rural areas, where a large proportion of the population is engaged in agriculture.
• Addressing income inequality : Addressing income inequality through progressive taxation and other policies can help to reduce poverty and improve social cohesion.
• Encouraging inclusive growth : Encouraging inclusive growth that benefits all sections of society can help to reduce poverty and promote sustainable development.

Previous Year Questions

Q) In a given year in India, official poverty lines are higher in some states than in others because( 2019 )

(a) poverty rates vary from State to State

(b) price levels vary from State to State

(c) Gross State Product varies from State to State

(d) quality of public distribution varies from State to State

Q) COVID-19 pandemic accelerated class inequalities and poverty in India. Comment. ( 2020 )

Q) Despite implementation of various programmes for eradication of poverty by the government in India, poverty is still existing.’ Explain by giving reasons. ( 2018 )

Q) An essential condition to eradicate poverty is to liberate the poor from deprivation.” Substantiate this statement with suitable examples. ( 2016 )

Q) Critically examine whether growing population is the cause of poverty or poverty is the main cause of population increase in India. ( 2015 )

Frequently Asked Questions (FAQs)

Q) what are absolute poverty and relative poverty  .

Absolute poverty refers to when a person or household does not have the minimum amount of income needed to meet the minimum living standards. Relative poverty refers to a situation where individuals or households have a lower standard of living compared to the rest of society. In this case, poverty is measured relative to the average income or standard of living in a particular society or country.

Q) What is Multidimensional Poverty Index(MPI)?

The MPI is a measure of poverty that takes into account multiple dimensions (education, health, and standard of living) that contribute to the experience of poverty. The index was developed by the Oxford Poverty and Human Development Initiative (OPHI) in collaboration with the United Nations Development Programme (UNDP). 

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Definition | Data | How to measure poverty | Poverty Line | Causes | Solutions

Table of contents, relevance for upsc cse.

• GS 1 - Poverty and developmental issues
• GS 2 - Issues relating to poverty and hunger.
• GS 3 - Food Security

What is poverty?

Poverty is a state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living. Poverty means that the income level from employment is so low that basic human needs can't be met. Poverty is said to exist when people lack the means to satisfy their basic needs.

Data/Statistics

• 8.8% of the population lives in severe multidimensional poverty (Multidimensional Poverty Index, 2018)
• In India, 21.9% of the population lives below the national poverty line in 2011.
• Global Hunger Index (GHI) report for 2020 ranks India at 94 out of 107 countries

Types of Poverty

• Absolute Poverty - Absolute poverty refers to when a person or household does not have the minimum amount of income needed to meet the minimum living requirements
• Relative Poverty - It is a measure of income inequality. It is related to living standard of a person/family compared to the living standards of population in surroundings. Eg. In a surrounding where everyone has 4 cars, a person with 2 cars might be called as in relative poverty.

How poverty is measured?

• The poverty in India is measured on the basis of poverty line quantified in terms of per capita consumption expenditure
• Data is obtained from the large sample survey of consumer expenditure data of the National Sample Survey Office (NSSO).
• Households with consumption expenditures below the poverty line are said to be “Below the Poverty Line (BPL)” and deemed to be poor.

Pre-Independence Poverty Estimation

• Poverty and Unbritish Rule in India (1901) : Dadabhai Naoroji’ in his book ‘Poverty and Un-British Rule in India,’ made the earliest estimate of poverty line at 1867-68 prices (₹16 to ₹35 per capita per year) based on the cost of a subsistence diet.
• National Planning Committee (1938) : In 1938, the National Planning Committee set up under the chairmanship of Jawaharlal Nehru suggested a poverty line (ranging from ₹15 to ₹20 per capita per month) based on a minimum standard of living.
• The Bombay Plan (1944): Bombay Plan proponents suggested a poverty line of ₹75 per capita per year.

Post- Independence Poverty Estimation

Working Group (1962): The poverty line in India was quantified for the first time in 1962 by this Group in terms of a minimum requirement (food and non-food) of individuals for healthy living

VM Dandekar and N Rath (1971): first established the consumption levels required to meet a minimum calorie norm. (2250 calories per person per day). Poverty level was calculated on the basis of expenses needed to fulfil this calorie criteria

Task Force on “Projections of Minimum Needs and Effective Consumption Demand” headed by Dr. Y. K. Alagh (1979) : Official poverty counts began for the first time in India based on the approach of this Task Force. Poverty line was defined as the per capita consumption expenditure level to meet average per capita daily calorie requirement of 2400 kcal per capita per day in rural areas and 2100 kcal per capita per day in urban areas . Based on 1973-74 prices, the Task Force set the rural and urban poverty lines at Rs. 49.09 and Rs. 56.64 per capita per month at 1973-74 prices.

Lakdawala Expert Group (1993): Until the 1990s, no attempt was made to capture differences in prices or differences in consumption patterns across states or over time. In 1989, The Planning Commission constituted the Lakdawala Expert Group to "look into the methodology for estimation of poverty and to re-define the poverty line, if necessary". The Expert Group did not redefine the poverty line and retained the separate rural and urban poverty lines recommended by the Alagh Committee at the national level based on minimum nutritional requirements. However, it disaggregated them into state-specific poverty lines in order to reflect the inter-state price differentials.

Tendulkar Expert Group (2009) : It recommended -

• Shift from Calorie Consumption based Poverty Estimation: It based its calculations on the consumption of the items like cereal, pulses, milk, edible oil, non-vegetarian items, vegetables, fresh fruits, dry fruits, sugar, salt & spices, other food, intoxicants, fuel, clothing, footwear, education, medical (non-institutional and institutional), entertainment, personal & toilet goods.
• Uniform Poverty line Basket: Unlike Alagh committee (which relied on separate PLB for rural and urban areas), Tendulkar Committee computed new poverty lines for rural and urban areas of each state based on the uniform poverty line basket and found that all India poverty line (2004-05) was ₹446.68 per capita per month in rural areas and ₹578.80 per capita per month in urban areas
• Private Expenditure: Incorporation of private expenditure on health and education while estimating poverty.
• Price Adjustment Procedure: The Committee also recommended a new method of updating poverty lines, adjusting for changes in prices and patterns of consumption (to correct spatial and temporal issues with price adjustment), using the consumption basket of people close to the poverty line.
• Mixed Reference Period: The Committee recommended using Mixed Reference Period based estimates, as opposed to Uniform Reference Period based estimates that were used in earlier methods for estimating poverty.

Rangrajan Committee (2014) : Due to widespread criticism of Tendulkar Committee approach as well as due to changing times and aspirations of people of India, Rangarajan Committee was set up in 2012. It reverted to the practice of having separate all-India rural and urban poverty line baskets and deriving state-level rural and urban estimates from these. It recommended separate consumption baskets for rural and urban areas which include food items that ensure recommended calorie, protein & fat intake and non-food items like clothing, education, health, housing and transport. This committee recommended poverty line at monthly per capita consumption expenditure of Rs. 972 in rural areas and Rs. 1407 in urban areas is recommended. The government did not take a call on the report of the Rangarajan Committee. So, currently poverty in India is measured on the basis of Tendulkar Committee Report.

Causes of Poverty

• Lack of good jobs/job growth - In india over 90% population is employed in informal sector. Also, according to recent Periodic Labour Force Survey (PLFS) for 2020-21 released by the Ministry of Statistics and Programme Implementation, the unemployment rate in India is 4.2%
• Lack of Education - Poverty is a vicious cycle and without education, people aren’t able improve their situations. According to UNESCO, over 170 million people could be free of extreme poverty if they only had basic reading skills. UNESCO Global Education Monitoring Report
• Lack of good healthcare - People who are poor are more likely to suffer from bad health, and those with bad health are more likely to be poor. This is because healthcare is often too expensive or inaccessible to those who need it. Without money for medicine and treatment, the poor have to make really tough decisions, and usually essentials like food take priority. People who are sick get sicker, and then they can’t work, which makes the situation even more dire. If people do seek treatment, the cost often ruins their finances. It’s a vicious cycle.
• Warfare/conflict - Eg. Poverty in Iraq, Syria, Afghanistan, etc.
• Weather/climate change - According to the World Bank , climate change has the power to impoverish 100 million people in the next decade or so. We know climate change causes drought, floods, and severe storms, and that can take down successful countries while pulling poor ones down even further. Recovering is extremely difficult, as well, especially for agricultural communities where they barely have enough to feed themselves, let alone prepare for the next harvest year.
• Population Explosion - Increases the demand for consumption goods tremendously.
• Inefficient Resource utilisation - Eg. underemployment and disguised unemployment in the country, particularly in the farming sector.
• Social injustice - Social injustice such as a gender discrimination, racism, or other forms and poverty are direcly correleated. Social injustice lead to Poverty and poverty lead to injustice (vicious cycle). People who are victims of social injustice struggle with getting a good education, the right job opportunities, and access to resources that can lift them out of poverty.
• Low Rate of Economic Development clubbed with inflation.
• Historical factors - Eg. In India, poverty is prevalent due to systmatic loot of Indian resources by Britishers for 150+ years
• Political unwillingness-
• Issues in governance - Problem in implementation of programmes and policies, corruption, etc

Poverty Alleviation Programs in India

• Jawahar Rozgar Yojana/Jawahar Gram Samridhi Yojana: The JRY was meant to generate meaningful employment opportunities for the unemployed and underemployed in rural areas through the creation of economic infrastructure and community and social assets.
• Integrated Rural Development Programme (IRDP): It was aimed at providing assistance to the rural poor in the form of subsidy and bank credit for productive employment opportunities.
• Rural Housing – Indira Awaas Yojana: The Indira Awaas Yojana (LAY) programme aims at providing free housing to Below Poverty Line (BPL) families in rural areas and main targets would be the households of SC/STs.
• Food for Work Programme: It aims at enhancing food security through wage employment. Food grains are supplied to states free of cost, however, the supply of food grains from the Food Corporation of India (FCI) godowns has been slow.
• National Old Age Pension Scheme (NOAPS): This pension is given by the central government. It tries to address the issue of poverty due to old age
• Annapurna Scheme: This scheme was started to provide food to senior citizens who cannot take care of themselves and are not under the National Old Age Pension Scheme (NOAPS), and who have no one to take care of them in their village.
• Pradhan Mantri Kaushal Vikas Yojana: It will focus on fresh entrant to the labour market, especially labour market and class X and XII dropouts.
• Sampoorna Gramin Rozgar Yojana (SGRY): The main objective of the scheme continues to be the generation of wage employment, creation of durable economic infrastructure in rural areas and provision of food and nutrition security for the poor.
• Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) 2005: The Act provides 100 days assured employment every year to every rural household. One-third of the proposed jobs would be reserved for women. The central government will also establish National Employment Guarantee Funds. Similarly, state governments will establish State Employment Guarantee Funds for implementation of the scheme. Under the programme, if an applicant is not provided employment within 15 days s/he will be entitled to a daily unemployment allowance.
• National Rural Livelihood Mission: Aajeevika (2011): It evolves out the need to diversify the needs of the rural poor and provide them jobs with regular income on a monthly basis. Self Help groups are formed at the village level to help the needy.**
• National Urban Livelihood Mission: The NULM focuses on organizing urban poor in Self Help Groups, creating opportunities for skill development leading to market-based employment and helping them to set up self-employment ventures by ensuring easy access to credit.
• Pradhan Mantri Jan Dhan Yojana: It aimed at direct benefit transfer of subsidy, pension, insurance etc. and attained the target of opening 1.5 crore bank accounts. The scheme particularly targets the unbanked poor.

Apart from these, various other government schemes tries to deal with poverty alleviation, These include

• Mid day meal scheme
• Integrated Child Development Scheme (ICDS)
• Right to Education Act
• Various pension schemes etc.

International Indices to measure Poverty

• World Bank defines poverty as deprivation in well-being comprising many dimensions. It includes low incomes and the inability to acquire the basic goods and services necessary for survival with dignity.
• SDG1 is, by 2030 to reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions. India has not only committed to achieving the Sustainable Development Goals (SDGs), it was a leading proponent of the first goal that addresses the issue of poverty. This goal commits the signatories to eliminating poverty according to the common international poverty line of $1.25 per person per day (at 2005 Purchasing Power Parity or PPP) and cutting it in half “according to national definitions” (goals 1.1 and 1.2, respectively).
• The UN’s 2030 Agenda for Sustainable Development reaffirmed the importance of multi-dimensional approaches to poverty eradication that go beyond economic deprivation.

Various international efforts to measure poverty along with implications for India are briefly discussed below:

Global Multi Dimensional Poverty Index (MPI)

• MPI was developed in 2010 by the Oxford Poverty & Human Development Initiative (OPHI) and the United Nations Development Programme
• It uses different factors to determine poverty beyond income-based lists.
• It replaced the previous Human Poverty Index. The global MPI is released annually by OPHI.
• In Global MPI 2020, India was 62nd among 107 countries with an MPI score of 0.123
• It tracks deprivation across three dimensions and 10 indicators as indicted below:
• Education: Years of schooling and child enrollment
• Health: Child mortality and nutrition
• Standard of living: Electricity, flooring, drinking water, sanitation, cooking fuel and assets

A person is multi-dimensionally poor if she/he is deprived in one third or more (means 33% or more) of the weighted ten indicators. Those who are deprived in one half or more of the weighted indicators are considered living in extreme multidimensional poverty. The MPI ranges from 0 to 1, higher values implying higher poverty

World Bank Poverty Line

• Presently, the World Bank defines extreme poverty as living on less than $1.90 a day, measured in 2011 purchasing power parity prices.
• However, measuring poverty through headcount ratios fails to capture the intensity of poverty – individuals with consumption levels marginally below the poverty line are counted as being poor just as individuals with consumption levels much further below the poverty line.
• World Bank has developed poverty gap index as alternative way of measuring poverty. It measures the intensity of poverty, by calculating the amount of money required by a poor household in order to reach above the poverty line.

World Poverty Clock (WPC)

• WPC is a systematic analytical framework to measure progress towards SDGs by World Data Lab.
• The World Poverty Clock (WPC) provides real-time poverty estimates until 2030 for (almost) every country in the world. The World Poverty Clock (WPC) is a global model that tracks poverty in real time.
• It uses publicly available data on income distribution, production and consumption and bridges the common decadal gaps between large-scale surveys and censuses.
• Despite rapid growth and development, an unacceptably high proportion of our population continues to suffer from severe and multidimensional deprivation. Thus, a more comprehensive and inclusive approach is required to eradicate poverty in India.

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Poverty in India: Reasons, Responses, Solutions

From Current Affairs Notes for UPSC » Editorials & In-depths » This topic

Note: This article is dynamic i.e., updates are automatically shown from recent current affairs at the bottom of the article.

This topic of “Poverty in India: Reasons, Responses, Solutions” is important from the perspective of the UPSC IAS Examination , which falls under General Studies Portion.

What is Poverty?

• Prior to the 1990s when India was a closed economy, the public distribution system provided necessary resources to all the citizens. However, due to the financial constraints and policy changes after the commencement of Globalisation in India, the government provided necessary resources to the target population i.e., those who deserve governmental assistance.
• This lead to the Government’s adoption of the Targeted Public Distribution System. That is, the Government provided subsidised food to those who come under Below Poverty Line.
• It is difficult to give the exact definition of poverty as it has numerous causes and characteristics. It differs from nation-nation, urban-rural, etc. in other words, the definitions of poverty are based on perspectives.
• However, the general idea is that when an individual has lesser accessibility and affordability to certain essentials like food, clothes, a place to live, healthcare, education, etc., then he is said to be living in poverty.
• The UN and the World Bank calculate poverty through Purchasing Power Parity and nominal relative basis.
• Therefore the poverty estimation differs during varying perceptions.

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How was poverty estimated in India?

Estimation of poverty in british india:.

• In India, the first-ever Poverty estimation was done by Dadabhai Naoroji in 1901 which was published in his book “Poverty and Un-British Rule in India”
• The National Planning Committee of 1936 has estimated poverty in India during the Colonial rule. It calculated poverty linking nutrition, clothing, and housing. This method was used in Independent India also. The poverty estimation by the National Planning Committee showed a grim picture of British India’s Economy

Estimation of poverty in Independent India:

• A working group was set up in 1962 to estimate the poverty line of the country.
• This estimation was based on the minimum calories required to survive and the cost estimates of the minimum calories in Rural India. According to this, the average poverty line is Rs.20 per month. Based on 1960-61 prices.
• Alagh Committee: Until 1979, poverty was calculated based on the income of the citizens. In 1979, based on the recommendation by a committee headed by Y K Alagh, poverty was estimated based on the calories consumed by the population. According to the committee, poverty estimation differs in rural and urban areas. In the rural area, if a resident consumes less than 2400 calories per day, then he/ she belongs BPL population. In an urban area, if a resident consumes less than 2100 calories per day then he/she suffers from poverty. This is an assumption that the urban population needs lesser calories as they are not involved in physical works like that of the rural population. The Alagh committee was the first in India to define the poverty line.
• Lakdawala Formula: This was proposed by Lakdawala Committee that was headed by D.T.Lakdawala. This is also based on household per capita expenditure. Lakdawala committee used the same method used by the Alagh committee. However, it included certain criteria that were missing in the latter. Health and education were considered during the estimation. This committee used CPI-IL (Consumer price index for Industrial Labourers) and CPI-AL (Consumer price index for Agricultural labourers to determine the poverty line. In this method, the average of the minimum necessary per capita household expenditure is calculated to estimate the poor. The obtained value is the base for the poverty line and anyone who lives in a household with per capita expenditure lesser than the obtained average belongs to the BPL. Through this method, it was estimated that 36% of the population were BPL in 2004-2005 and 22% of the population under BPL in 2011. Poverty in India was estimated using this method until 2011.
• Suresh Tendulkar Committee: This committee was set up by the Planning commission in 2005. The methods recommended by this committee are used in the current times. It urged the shift from a calorie-based model and inclusion of monthly expenditure on education, health, electricity, and transport. It introduced the new term “Poverty Line Basket” to determine and estimate poverty. It called for the uniformity of the poverty line basket for both urban and rural areas. If a person does not have access to any of the goods mentioned under the poverty basket then he/she is suffering from poverty. This method uses the cost of living as the basis for identifying poverty. However, the resulted estimation was very low and resulting in public outcry. This lead to the formation of the Rangarajan Committee.
• Rangarajan Committee: Formed in the year 2012, this committee was chaired by Rangarajan. This too adopted calorie-based calculation of the poverty level. This had limitations as it calculated only the absolute minimum necessities. This did not include comfortable living standards as a necessity.
• Current status of poverty line estimation: The above cases show the complexity and difficulty in the determination of the poverty line. Currently, the Indian government still hasn’t found a solid solution to estimate the poverty level of the country. The task was given a 14 member task force headed by NITI Aayog vice-chairman, Aravind Panagaria. They too have failed and have recommended setting up of a new specialised panel to debate the issue.

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What are the causes of poverty (Indian perspective)?

• Colonial exploitation: India under the colonial hegemony was forced to de-industrialize resulting in increased raw material production and a decrease in the export of value-added goods like traditional handicrafts and textiles. The natives were forced to buy British goods, thus discouraging them from manufacturing indigenously. This led to massive unemployment. The droughts, diseases, and others increased the plight of the Indians during that time.
• Increase in the population : the rapid increase in the population due to a decrease in the mortality rate and an increase in the birth rate can be an asset for the Indian economy. However, in the present scenario, this is turning out to be a liability due to massive unemployment and an increase in the dependence on those working populations. The massive population must be converted to human capital to promote the growth of the economy.
• Natural Calamities : In India, the maximum of the population who belong to BPL is from states of Bihar, Jharkhand, Odisha, Madhya Pradesh, Chattisgarh, Uttar Pradesh, and Uttarakhand. The reason behind this is that these states are prone to natural disasters and also most of the population in these states are from SC/STs thus making them unrepresented. The natural calamities in these states hamper the agricultural progress and economic development of these states.
• The rise of unorganised sectors : many sectors in the Indian economy are unorganised. This brings in the problem of labour exploitation. The increase in demand for work also causes job insecurities.
• Failing Agricultural sector : the agricultural sector is one of the most vulnerable sectors of the Indian economy. Farmer suicides and protests are on the rise due to the increasing debt and decrease in production. This, in the long run, would result in them suffering from poverty. This sector employs a maximum of the Indian population but provides little profit.
• Lack of investment : The investment provides more job opportunities. For this, the Indian economy must be favourable for foreign investment. However, some parts of India remain unfavourable due to corruption , political instability, militancy etc.
• Social factors : Illiteracy, unrepresented minorities, social norms, caste systems are still prevalent in certain parts of India.
• Lack of skilled labour : the population can be an asset to the economy if it is utilized efficiently. This can be done through human capitalization. Measures to improve the literacy of the population are very slow. Some, due to the lack of sufficient skills are not accepted in the workforce. This results in unemployment and poverty.
• Corruption: Many measures have been taken by the government to eliminate poverty. However, there is still a lack of political will. The corruption by those in power also contributes to poverty.
• Inefficient use of resources : India is a country that has abundant natural resources which, if utilized efficiently, without wastage, can be turned into an asset.
• Lack of entrepreneurship : There are many activities in India that can be of asset to the economy. For example, some tribes have rich art and culture which can be utilized for the tribes’ growth and development through proper entrepreneurship. However, due to a lack of leadership and entrepreneurial skills, they go to waste. The tribes remain one of the most vulnerable sections of Indian society.
• Lack of infrastructure : Many parts of India still remain isolated despite the rapid economic growth. There are several villages in India that still don’t have access to basic commodities like electricity, thus resulting in poor standards of living. They don’t even have proper roads or railways. Their contribution to the economy goes to waste due to inaccessibility.
• Recession induced by coronavirus pandemic .

What is the current status?

• The 2019 Global Multidimensional Poverty Index published by the UN Development Program has estimated that multidimensional poverty in India has fallen by 27.5% between 2005-06 and 2015-16. Multidimensional poverty means the estimation of poor not only based on income but also several factors such as poor health, poor working conditions, etc.
• According to World Poverty Clock , close to 44 Indians are escaping from extreme poverty each minute.
• As of 2011, 21.9% of the Indian population belongs below the poverty line.
• The unemployment rate as of April 2021 is 7.1%. This is a huge problem as unemployment is the direct cause of poverty in the country. The recent years saw a rapid increase in infrastructural developments like roads and housing projects for the alleviation of the poor. This might help boost investments in the country increasing job opportunities.
• According to a World Bank working paper, extreme poverty in India dropped to 10.2%  in the  pre-Covid year of 2019  from as much as  22.5% in 2011  .

Covid induced poverty according to Pew report

• The poverty rate in India likely increases to 9.7% in 2020, up sharply from the January 2020 forecast of 4.3%.
• From 2011 to 2019, the number of poor in India was estimated to have decreased to 78 million from 340 million.
• Poor: People with incomes of USD 2 or less a day.
• Increase in India accounts for nearly 60% of the global increase in poverty.
• Record increase in  Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)  participants as proof that the poor were struggling to find work.
• Middle Class: people with incomes of around Rs. 700-1,500 or USD 10-20 per day.
• The middle-income group is likely to have decreased from almost 10 crores to just 6.6 crores.
• The huge majority of India’s population falls into the low-income group.
• Low Income Group: people earning about Rs.150 to 700 per day.
• Rich: Includes the people who earn more than Rs.1,500 a day.
• The lockdown triggered by the pandemic resulted in shut businesses, lost jobs, and falling incomes, plunging the Indian economy into a deep recession.

What are the measures taken by the government to alleviate poverty?

• Swarnajayanti Gram Swarozgar Yojana :
• It was launched on April 1, 1999.
• This program merged Integrated Rural Development Program, Training of Rural Youth for Self Employment (TRYSEM), Development of Women and Children in Rural Areas (DWCRA), Million Wells Scheme (MWS), Supply of Improved Toolkits to Rural Artisans (SITRA) and Ganga Kalyan Yojana.
• Its objective is to alleviate the beneficiaries from BPL.
• It helps promote the self-employment of the rural poor.
• The fund sharing between the Centre and the State is at the ratio of 75:25.
• This scheme aims at working in clusters to provide inclusive and effective aid to the rural poor.
• The rural poor are organized into SHGs to provide training, capacity building and providing assets to generate income.
• This scheme was renamed as National Rural Livelihood Mission in 2011.
• This was finally merged to Deen Dayal Upadhyaya Antyodyaya Yojana to provide skills training for the poor. This scheme also provides subsidies and shelters for the homeless. The vendor markets are developed to promote job in the rural areas.
• Jawahar Gram Samriddhi Yojana:
• This scheme replaced the erstwhile Jawahar Rozgar Scheme.
• It was launched in April 1999 to generate employment in rural areas through infrastructure development.
• Pradhan Mantri Awaas Yojana:
• It has two components: Pradhan Mantri Awaas Yojana (Grameen) and Pradhan Mantri Awaas Yojana (Urban)
• It was launched in 2015.
• It unites schemes like Ujjwala yojana (provides LPG to BPL), access to toilets, water, drinking water facilities and Saubhagya Yojana (electricity).
• Mahatma Gandhi National Rural Employment Guarantee Act,2005:
• Launched on February 2, 2005
• It provides 100 days of guaranteed employment to rural households.
• 1/3 rd of the jobs reserved for women.
• If the jobs are not available for the applicants, and they were without jobs within 15 days, then they will be given unemployment allowance.
• This guarantees employment opportunities to the rural population and accountability of the government.
• Under this, National Food for Work, which was launched in 2004 was subsumed in 2006.
• The National Food for Work provided additional resources and assistance that are absent under Sampoorna Grameen Rozgar Yojana. Under this program, 150 districts were identified as backward by the Planning Commission. They were the beneficiaries of this program. Food security , employment through need-based social, economic, and community assets
• Pradhan Mantri Kaushal Vikas Yojana :
• Launched by the Ministry of Skills Development and Entrepreneurship in 2015.
• It is a scheme aimed at the enhancement of skills based on the demand of the economy.
• This scheme is implemented through Nation Skill Development Corporation (NSBC).
• Training and assessment fees are paid by the government.
• The training provided under this scheme is based on National Skill Qualification Framework and industry-level standards.
• The beneficiaries include college graduates and school/ college dropouts.
• Rythu Bandhu Scheme: This was a scheme implemented in Telangana to provide financial assistance of Rs.4000 per acre per season to all land-owning farmers.
• Pradhan Mantri Kisan Samman Nidhi : This scheme aims to provide financial assistance to provide working capital support to all the landholding farmers. This brings in the idea of universal basic income for the farmers in India. Read more
• Social security schemes
• Atmanirbhar bharat abhiyan
• Production linked incentive scheme
• Garib kalyan rojgar abhiyaan

Way Forward:

• The government must provide transparency and accountability to various organizations that are responsible for the implementation of the Welfare Schemes.
• Infrastructure development and skills development must be made a top priority.
• More govt expenditure in health, nutrition, and education.
• The problem of the inability to determine the poverty line must be resolved to help the target population.
• Direct income transfer to the needy is an immediate solution. Universal Basic Income should also be considered.
• Investment in Agriculture by the government is necessary to decrease rural poverty. Subsidies address only short-term issues. Also, there is a need to develop technologies, with the help of which farmers can practice all-weather agriculture.
• Employment-oriented growth:  create jobs in modern sectors and promote labour-intensive industries.
• Reduce corruption for efficient service delivery.
• Resilience for poor households to withstand major shocks: through holistic, multi-faceted intervention designed to help people lift themselves from extreme poverty by providing them with the tools, skills, and resources required to deal with the challenges that keep them trapped in a state of destitution. In addition to providing assets such as livestock, the government should also provide livelihood and financial skills training to make these assets productive; personal coaching to instill confidence and hope; basic health care for families, and more.

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Poverty and Developmental Issues

Last updated on February 25, 2024 by ClearIAS Team

Persistent and unchecked poverty and developmental issues associated with it are one of the ironies of the technologically progressing world. Why does poverty still exist? What are the types of poverty existing in the world? How is poverty estimated in India? What are the measures to tackle it? Read on to know more.

Poverty is a complex phenomenon in which an individual or group lacks the means of subsistence and other basic necessities.

The World Bank defines poverty as a severe lack of well-being that has several dimensions.

Low salaries and the inability to obtain the fundamental goods and services required for humane survival are examples of this. Low levels of health and education, poor access to sanitary facilities, insufficient physical security, lack of voice, and lack of resources are all included in the definition of poverty.

Table of Contents

Types of Poverty

Poverty can be categorised in the following ways based on social, economic, and political factors:

1. Absolute poverty

It describes a state in which a person consistently falls short of earning enough money to cover at least one or more essential expenses for a long time. It can be calculated in terms of money, calories, or nutritional attainment.

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For example, Families that are unable to feed their children and themselves, as well as homeless persons living on the streets, are examples of absolute poverty.

2. Relative poverty

It happens when people do not have the minimal level of living standards that are set by the government and are enjoyed by the majority of the population and vary from country to country. It is thought to be on the rise and may never completely disappear.

For example, A person living in a wealthy culture may have a regular income and all of the essentials of life, but because they do not have as many luxuries as other members of the community, relative poverty is defined in the UK as income that is 50% below average salaries.

3. Situational Poverty

It is a form of temporary poverty predicated by the occurrence of a negative event like an environmental catastrophe, a job loss, or a serious health issue.

People are capable of helping themselves even with modest assistance because poverty is the result of unfavourable circumstances.

Also read: Economic and Social Development – Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc.

4. Generational Poverty

It is passed down from one generation to the next to individuals and families.

This is more challenging because there is no way out because everyone is caught up in the root of the problem and lacks access to the necessary resources.

5. Rural Poverty

This happens in rural locations where there are fewer job prospects, services to access, support for people with impairments, and opportunities for a good education.

Most of the locals depend on farming and other clerical labour that is available in the area to make a living.

6. Urban Poverty

The main difficulties urban residents confront as a result of poverty include:

Having trouble accessing health care and education

Poor housing and services

Due to congestion, the environment is violent and unpleasant a weak or nonexistent social safety net.

Also read: Urban Poverty

Poverty Estimation

Pre-independence poverty estimation.

The oldest calculation of the poverty line was done by Dadabhai Naoroji in his book “Poverty and unBritish Rule in India.”

This estimate was made based on the price of subsistence or minimally adequate food.

National Planning Committee (1938)

This committee, which was established under the leadership of Jawaharlal Nehru, proposed a poverty line based on a minimal quality of living, ranging from $15 to $20 per person per month.

The Bombay Plan (1944)

Supporters of the Bombay Plan1 proposed a poverty limit of $75 per person per year, which was far lower than the National Planning Committee’s estimate.

Post-Independence Poverty Estimation

Planning Commission (1962)

The Planning Commission formed the Planning Commission Expert Group in 1962, and it was this group that developed the distinct poverty lines for rural and urban areas Rs.20 and Rs.25 per capita per year respectively.

Y. K. Alagh Committee (1979)

The accurate measurement of poverty based on starvation was decided.

A committee made a suggestion based on the fact that impoverished people are those who consume less than 2,100 calories in urban regions and less than 2,400 calories in rural areas, respectively.

Lakdawala Committee (1993)

The following recommendations were made by an expert group, led by D.T. Lakdawala, which was formed to assess the technique for estimating poverty: As in the past, calorie consumption should serve as the basis for calculating consumption expenditure;

Poverty lines should be created for each state and updated using the Consumer Price Index of Agricultural Labor (CPI-AL) in rural regions and the Consumer Price Index of Industrial Workers (CPI-IW) in urban areas;

The stoppage of “scaling” poverty statistics based on National Accounts Statistics

Suresh Tendulkar Committee (2005)

The recommendations made by this committee serve as the foundation for the current poverty estimates.

This committee suggested abandoning the calorie-based approach and broadening the definition of poverty by taking into account monthly expenditures on power, transportation, health care, and education.

It advocated for nutrient intake as opposed to calorie intake. A line based on the cost of living was also drawn by the committee. In rural and urban areas, the Tendulkar panel set a baseline daily per capita spending of Rs. 27 and Rs. 33, respectively.

C. Rangarajan Committee (2012-14)

The committee increased the cost of living per day for rural and urban areas, respectively, to Rs. 32 and Rs. 47. As a result, India’s poverty rate was close to 30% and its total population was near to 40 crores.

Arvind Panagariya Task Force (2015)

A committee to identify people “Below Poverty Line (BPL)” was suggested by the task group.    The study discusses four methods for tracking the impoverished, starting with maintaining the Tendulkar poverty line.

Next, move to the Rangarajan or other higher rural and urban poverty levels.

Third, follow-up data on the bottom 30% of the population over time

Fourth, keeping track of the bottom 30%’s performance on particular metrics like housing, sanitization, electricity, dietary intake, etc.

NITI Aayog Task Force

NITI Aayog has emphasised that the poverty level will only be used to assess progress in addressing poverty rather than identifying the poor for entitlements in order to allay concerns that many poor people would be left behind if the Tendulkar Committee’s poverty line is adopted.

Multidimensional Poverty Index by Niti Ayog

A Multidimensional Poverty Index Coordination Committee (MPICC) has been established by NITI Aayog with representatives from pertinent Line Ministries and Departments.

The competition between states is intended to compel states to adopt drastic measures to reduce poverty.

The UNDP’s Multidimensional Poverty Index is also anticipated to be influenced by the findings (MPI).

Why does poverty still exist?

The heavy pressure on the population.

India has 84.63 billion people in 1991 and 102.87 billion in 2001.

The excessive subdivision and holdings fragmentation that results from rapid population increase. As a result, there is significantly less land available per person, and households lack access to enough land to meet their needs for productivity and revenue.

Since 1951, India’s population has been expanding quickly, which has resulted in a slower increase in per capita income and decreased living standards for the populace.

Unemployment and underemployment

In India, there is persistent unemployment and underemployment as a result of the country’s ongoing population growth.

Poverty is merely a reflection of this element, and there is educated unemployment as well as concealed unemployment.

Lack of Inclusive Economic Growth

The lack of adequate economic growth in India is the primary factor contributing to the country’s widespread poverty.

Since India gained independence, the national income and savings rate has increased, but poverty has not decreased as much as it could have because industrial expansion has not produced enough job possibilities.

Growth strategies benefited the wealthy more than they did the poor.

Failure to enact land reforms

Fair access to land is a crucial component of the fight against poverty.

The majority of rural poor people work as agricultural labourers (who typically lack land) and are independent small farmers with less than 2 acres of land.

Additionally, they are unable to find work all year long. As a result, they work too little and are unemployed for a lot of days each year.

Inflation and Food Prices

The cost of the minimal consumer expenditure necessary to meet basic necessities increases due to inflation , notably given the increase in food costs. As a result, many households are forced below the poverty line by inflation.

Shortage of Capital and Able Entrepreneurship

The ability to start your own business and have money both play a big part in driving growth. However, compared to other developing countries, these are scarce, making a large rise in output difficult.

Social Factors

The social structure is still outdated and does not encourage rapid development.

Inheritance laws, the caste system, traditions, and conventions are impeding rapid progress and making the poverty issue worse.

Climatic variables

India’s hot climate makes it harder for individuals, particularly rural residents, to work, which has a negative impact on productivity.

Frequent floods, famines, earthquakes, and cyclone harm agriculture severely; as a result, food prices rise and access becomes increasingly difficult, increasing the risk of poverty for many.

Moreover, the agricultural production of the nation is adversely impacted by the lack of timely rain, heavy rain, or insufficient rain.

Political elements

The process of granting concessions and eradicating poverty is disrupted by ethnic issues and conflict between two regional parties. The main reason for concern about India’s poverty is that various development programmes are being driven by political interests. As a result, efforts to address the issues of unemployment and poverty have been ineffective.

Actions to address issues of Poverty and developmental issues

More citizen participation.

Any programme cannot be implemented successfully without the poor’s engaged participation.

Only until the impoverished begin actively participating in the growth process and contributing to growth can poverty be truly erased.

This is made feasible by a social mobilisation approach that empowers the underprivileged by promoting their participation.

Accelerating Economic Growth

While attempts should be made to hasten economic growth, it is best to avoid importing capital-intensive technologies from Western nations.

Instead, we should pursue a path of economic growth that requires lots of labour.

Adopting monetary and fiscal measures that encourage the use of labour-intensive methods is necessary.

Growth of Non-Farm Employment

The growth of non-farm employment in rural areas is particularly important for reducing poverty.

It is possible to generate non-farm jobs in marketing, transportation, handicrafts, dairying, forestry, food processing, other agricultural product processing, repair businesses, etc.

Providing access to more assets to vulnerable sections

Reduce rural poverty through redistributing land through practical means, such as the implementation of tenancy reforms to provide security of tenure and the determination of reasonable rent.

Institutional Credit Access

The conditions enabling small farmers to acquire access to productive resources, such as HYV seeds fertilisers, and installation of minor irrigation, such as wells and tube wells, can be created through the availability of loans to the poor on easy terms.

Small farmers will be able to employ high-yielding technologies as a result, increasing their productivity.

Poverty Alleviation Schemes

National urban livelihoods mission: deen dayal antyodaya yojana (day-nulm).

• Housing and Urban Affairs Ministry
• Provide skill development and loans for self-employment to urban disadvantaged people Government interest subsidies are made through the PAISA Portal.
• Create markets for vendors in cities.
• shelters for the homeless

National Rural Livelihoods Mission: Deen Dayal Antidaya Yojana (DAY-NRLM)

• Rural Development Ministry
• Bring at least one woman from each low-income household, and provide them with training and funding for businesses making candles, soap, crafts, etc.
• They’ll work for themselves or for a skilled wage, which will bring in more money than working as farm labourers.

Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDUGKY-2014)

• Provides rural youth aged 15 to 35 with FREE skill training.
• At least 75% of trained candidates will be guaranteed a job.
• Cover Left-Wing Extremist (LWE) districts and youth in North Eastern States.

Aajeevika Grameen Express Yojana (AGEY-2017)

Interest-free loans are provided to SHGs and Community Based Organizations (CBOs) to purchase public transportation vehicles so they can make money transporting passengers.

Disha Committee (2016)

• For effective and timely development, the Ministry of Rural Development has established the District Development Coordination and Monitoring Committee (DISHA), which is made up of elected representatives from the local governments (PRI, ULB, State Assembly, and Parliament).
• They will check on the progress of the plans at a quarterly meeting.
• The senior-most Lok Sabha member from the designated district will serve as head of the DISHA Committee. To carry out the Committee’s instructions, DM/Collector(IAS) will serve as the member secretary.

Mission Antyodaya (2017)

• Ministry of Rural Development
• Here, the government will use the assistance of the Gram Panchayat, NGOs, SHGs, ASHA workers, etc. to more vigilantly and accountable implement the other ongoing programmes.
• By 2020, at least 50,000 Gram Panchayats will be free of poverty.

The major goal of all of our development programmes had been to encourage quick, balanced economic growth that was both equitable and socially just. However, not all groups of individuals have benefited from our policies and actions. The constitution’s promise and our ancestors’ hopes for an equitable society have not been realised. It’s time to consider unconventional approaches to ending poverty because while some regions and certain economic sectors have reached a level of social and economic growth that allows them to compete with industrialised nations, many others have been unable to escape the cycle of poverty.

Article Written By: Aryadevi

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Poverty Estimation in India

Syllabus: GS2/Social Justice: Poverty

• NITI Aayog B.V.R. Subrahmanyam recently claimed that less than 5% of Indians now live below the poverty line. He made the claim based on the findings of the Household Consumption Expenditure Survey (HCES), 2022-23. 
• The Household Consumption Expenditure Survey (HCES) claimed that India’s rural poverty level had declined to 7.2% in 2022-23 from 25.7% in 2011-12, while urban poverty slipped to 4.6% from 13.7% over the same period.
• The HCES is usually conducted by the National Statistical Office (NSO) every 5 years . It is designed to collect information on the consumption of goods and services by households.
• At a national level, the report reckoned that the poverty rate in India could now be in the range of 4% to 5% , with a caveat that these numbers could undergo minor revisions once the Census to count the population that was due in 2021, is completed and the rural-urban population share is published.

Other Estimates of Poverty in India

• Multidimensional poverty in India declined from 29.17% in 2013-14 to 11.28% in 2022-23 .
• As many as 24.82 crore people moved out of multidimensional poverty in nine years to 2022-23 , with Uttar Pradesh, Bihar and Madhya Pradesh registering the largest decline.
• The MPI 2023 estimates show a near-halving of India’s national MPI value and a decline from 24.85% to 14.96% between 2015-16 and 2019-21.  
• This reduction of 9.89 percentage points implies that about 135.5 million people have exited poverty between 2015-16 and 2019-21.
• Besides, the intensity of poverty , which measures the average deprivation among the people living in multidimensional poverty, reduced from 47.14% to 44.39%.

Poverty in India

• Poverty entails more than the lack of income and productive resources to ensure sustainable livelihoods. Its manifestations include hunger and malnutrition, limited access to education and other basic services , social discrimination and exclusion as well as the lack of participation in decision-making.
• Poverty in India remains a complex challenge despite significant reductions in recent decades.

Current Issues

• The World Bank, using the $2.15 per day benchmark (PPP – Purchasing Power Parity), estimates an 11.9% poverty rate for India.
• The Indian government claims a lower national poverty, with figures below 5% of the population below the poverty line .
• Government Data: The Indian government uses its own poverty indicators, which tends to show lower poverty rates compared to international benchmarks.
• Uneven Progress: Poverty reduction has been faster in rural areas compared to urban areas.

Causes of Poverty

• Limited Livelihood Opportunities: Lack of access to good jobs, especially in rural areas, keeps people trapped in poverty.
• Social Inequality: Caste discrimination, gender bias, and lack of access to education disproportionately affect marginalized communities.
• Low Productivity in Agriculture: The level of productivity in agriculture is low due to subdivided and fragmented holdings, lack of capital, use of traditional methods of cultivation, illiteracy etc.
• The benefits of the growth have been concentrated and have not “trickled down” sufficiently to ensure improved consumption among the lower income groups.
• Lack of Access to Social Services: The lack of access to social services such as health and education compound the problems arising from inequality in the ownership of physical and human assets
• Lack of access to Institutional Credit: The banks and other financial institutions are biased in the provision of loans to the poor for the fear of default in the repayment of loans.
• Lack of Productive Employment :  The magnitude of poverty is directly linked to the unemployment situation. The present employment conditions don’t permit a reasonable level of living causing poverty. 
• Caste system: Caste system in India has always been responsible for rural poverty. The subordination of the low caste people by the high caste people  caused the poverty of the former
• Social customs: The rural people generally spend a large percentage of annual earnings on social ceremonies like marriage, death feast etc. and borrow largely to meet these requirements. As a result, they remain in debt and poverty.
• Vicious Circle of Poverty: Low level of saving reduces the scope for investment; low level of investment yields low income and thus the circle of poverty goes on indefinitely.

Poverty Line Estimation in India

• Thus, India’s poors as percentage of total population in 2011-12 as per the Tendulkar committee was 21.9.
• Thus, India’s poor population as percentage of Indian population in 2011-12 was 29.5, as per Rangarajan committee.
• At the core of the MPI is the Alkire-Foster (AF) methodology, a globally accepted general framework for measuring multidimensional poverty, which captures overlapping deprivations in health, education, and living standards.
• International Poverty Line: The World Bank defines a person as extremely poor if she is living on less than $2.15 per day, which is adjusted for inflation as well as price differences between countries.

Suggestions/Measures

• Address interlinkages: Inequalities of income, education, and opportunity are all interconnected and must be addressed together. 
• Reducing inequalities of opportunity and of incomes among individuals, populations, and regions can foster social cohesion and boost general well-being.  
• Jobs and employment are the surest way to reduce poverty and inequality.
• Poverty eradication must be mainstreamed into the national policies and actions in accordance with the internationally agreed development goals forming part of the broad United Nations Development Agenda.
• Education and health: It is essential that the government should provide education and health services free of cost for the deserving citizens and those from the socially oppressed classes.

Government Initiatives to Reduce Poverty in India 

• Mahatma Gandhi National Rural Employment Guarantee Work (MGNREGA): It provides wage employment while also focusing on strengthening natural resource management through works that address causes of chronic poverty.
• Flagship programmes like the Poshan Abhiyan and Anaemia Mukt Bharat have contributed to reduced deprivations in health. 
• Initiatives such as Swachh Bharat Mission (SBM) and Jal Jeevan Mission (JJM) have improved sanitation across the country. 
• The provision of subsidized cooking fuel through the Pradhan Mantri Ujjwala Yojana (PMUY) has positively transformed lives in rural areas.
• Initiatives like Saubhagya, Pradhan Mantri Awas Yojana (PMAY), Pradhan Mantri Jan Dhan Yojana (PMJDY), and Samagra Shiksha have also played a major role in significantly reducing multidimensional poverty in the country.
• India has made progress in eliminating extreme poverty but still there is a long way to go ahead, as seen in the World Bank’s recent claim that 74% Indians still can’t afford a nutritious diet.

Further, to get the real picture of poverty in India revision of the poverty line as per changing socio-economic realities is needed.

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Poverty in India

India is the fastest growing large economy in the world today. Despite this, one in every five Indians is p oor.

• As many as 41.5 crore people exited poverty in India during the 15-year period between 2005-06 and 2019-21, out of which two-thirds exited in the first 10 years, and one-third in the next five years, according to the global Multidimensional Poverty Index (MPI).
• Indian poverty using the new poverty line of $2.15 per day, 10 per cent of Indians were poor in 2019, down from 22.5 per cent in 2011.

[World Bank Report, 2022]

22% 10% 26% 11.5% 14% 6% Poverty among Other Sections Male – 12% , Female – 13% (UN Women) Scheduled Castes – > 30% (MPI, UNDP) Scheduled Tribes – 50% (MPI, UNDP) Other Backward Classes – 27% (MPI, UNDP) Muslims – > 30% (MPI, UNDP) Less Consumption because of economic problem Average real rural incomes consumption declined by 8.8 % and real urban consumption increased by 2 % between 2011-12 and 2017-18 Inferred nominal average consumption in 2017-18 data was Rs. 1892 per capita per month (PCPM) in rural India and Rs. 3739 per capita per month in urban India - lowest in Indian history. Large Population: India's population has grown consistently throughout time. In the previous 45 years, it has increased at a pace of 2.2% annually, which translates to an average annual population increase of 17 million people. Unemployment: The population is growing, which has increased the number of job applicants. To match this need for work, there is not enough expansion in opportunities. Lack of Capital: The economy experiences low levels of investment and job creation due to a lack of capital and entrepreneurship. Climate Causes: The states of Bihar, UP, MP, Chhattisgarh, Odisha, Jharkhand, etc. are home to most India's poor people. Agriculture in these states suffers significant damage because of natural disasters such cyclones, earthquakes, regular floods, other disasters. Poverty trap: Poverty trap is a spiraling mechanism which forces people to remain poor. It is so binding in itself that it doesn't allow the poor people to escape it.  Impact of Poverty Contraction in GDP growth: A rising number of poor can lead to demand shocks in the economy, which will further lead to the contractions in GDP growth. Gap between poor and rich: As per the recent Multi-dimensional Poverty Index prepared by Niti Aayog, one in every four people in India was multi-dimensionally poor .  Bihar has the highest such proportion (51.91%), followed by Jharkhand (42.16%) and Uttar Pradesh (37.79%). The bottom 50% earned Rs 53,610, while the top 10% earned over 20 times more (Rs 11,66,520), the report states. Government initiatives for poverty Pradhan Mantri Garib Kalyan Ann Yojana (PMGKAY ): The programme aimed to deliver an additional 5 kg of free grains (rice or wheat) to each person covered by the National Food Security Act 2013 in addition to the 5 kg of subsidised foodgrain that was already provided under the Public Distribution System (PDS). ‘Pandemic, Poverty, and Inequality: Evidence from India’ says that ‘extreme poverty was maintained below 1% in 2020 due to Pradhan Mantri Garib Kalyan Ann Yojana (PMGKY). Inequality in rural areas has been reduced by 'leveling down' - reducing everybody’s income but proportionately more for the richer than the poorer sections of the population. Increase in efficiency of food subsidies' distribution via use of AADHAR. Nyuntam Aay Yojana (NYAY) : The PM-Kisan has, however, been dwarfed by the promise of the Nyuntam Aay Yojana (NYAY),  which envisages an annual transfer 12 times greater to the poorest 20% households. Answer our survey to get FREE CONTENT Feel free to get in touch! We will get back to you shortly Privacy Policy Terms of Service Quality Enrichment Program (QEP) Intensive News Analysis (INA) Topper's UPSC PYQ Answer Essay Enrichment Program PSIR Optional NEEV GS + CSAT Foundation News-CRUX-10 Daily Headlines Geo. Optional Monthly Editorials Past Papers © Copyright 2024 - theIAShub Talk To Our Counsellor Poverty in India Poverty is state of extreme deprivation where people lack basic necessities in life like food, clothes and shelter. It is often characterized by social exclusion, limited opportunities for individual growth and lack of access to resources and services which are needed for a decent standard of living. 1 Poverty:Historical perspective 2 Poverty: Dimensions 3 Poverty: Causes 5 Poverty: Committees Poverty:Historical perspective India suffered from a number of famines and economic distress during British period which resulted in high levels of poverty. The publication of theories like ‘ Drain of Wealth ‘ made it clear that the British rule is a major causative factor for India’s poverty. British made India their source of raw material and a market for their manufactured goods. British did not provide an amicable climate for development of industries in India as they had a forced policy of import from England. For Example: Textile industry was deindustrialised and handloom sector was destroyed. The imposition of Zamindari System and exploitation of farmers by the Zamindar, British administrators and the money lenders impoverished the farmers The salaries of officials and the administrative expenses to maintain the British rule were drawn from the Indian government’s expenses, further draining the finances of British India. The British rule was a major reason for India’s poverty because they ruled India for more than 200 years at a time when many western countries were on their path for development. For example, America which became independent in 1783 progressed well in its economy and its people became prosperous. Poverty: Dimensions India achieved a huge economic growth since 1947  but even in 2023 ~16% of its population is not able to gain prosperity and are left out of the development process. Absolute Poverty is a condition in which people do not even get a minimum income needed to maintain their lives. India has high prevailing rates of malnutrition, hunger, homelessness, unemployment and hence its absolute poverty also remains high. Relative poverty refers to a comparative perspective where a section of population is relatively deprived compared to another better off section of population. This definition is more broader and includes amenities like a well sanitised pucca house, access to education, healthcare, social security benefits, leisure, comfort etc., It indicates that a section of population is not able to participate effectively in social life. I.e, taking part in activities of society like festivals, getting an employment or indulging in leisure activities. Inequality refers to the social and economic divide between the rich and poor. In India the inequality between well off sections of the society and the rest of the population is increasing. In India, there is a regional dimension of poverty as some states like Delhi, Punjab, Haryana, Kerala, Tamil Nadu etc., have significantly reduced their poverty whereas states like Uttar Pradesh, Bihar, Madhya Pradesh, West Bengal etc., have a higher proportion of poor people. At another level there is rural-urban disparity as generally the urban areas have less poverty indices than compared to rural areas because of the availability of jobs in manufacturing, service sector etc. Even informal employment that pays a meagre wage is mostly concentrated in urban areas, also the agricultural sector is not much profitable in rural areas due to crop failures, fragmentation of land holdings etc.As a result there is widespread rural- urban migration for search of better jobs and livelihood. Poverty: Causes Poverty: committees. YK Alagh Committee:  In the initial decades after Independence poverty was measured in terms of income levels of individuals. Alagh Committee is the first to come up with an official poverty line. It recommended a poverty line based on calorie intake. It considered people who consume less than 2100 calorie in Urban areas as poor whereas in rural areas it is 2400 calories. The difference is justified by the fact that rural people do more physical work than their urban counterparts. This committee had a drawback because health and education was assumed to be provided by State Governments. Lakdawala Committee:  The formula given by this committee included the calorific limits of Alagh committee and it also included health and education components. It considered the total amount of money needed per person in a house to meet his calorie intake. This method was reported to have methodological errors as it showed the poverty line as double compared to previous estimates.   Tendulkar Committee: It suggested a shift away from calorie based model and focused on nutritional outcomes and included health, education, transport and electricity. It is based on spending per individual over a fixed period for an essential basket of goods Ie., cost of living . India presently follows this method for estimation of poverty. It set Rs 27 for rural areas and Rs 33 in urban areas for consumer spending as the reference limit and based on this they estimated that 21.5% of the Indian population as poor.  This estimation involved criticism from various quarters as it seemed to be very low and thus Rangarajan committee was constituted. Rangarajan   committee   on   poverty: It has taken monthly consumption expenditure per person or per household as a tool for calculating poverty lines. Based on this 972 INR (Rs 32 per day) in rural areas and 1407 INR (Rs 47 per day) in urban areas is calculated based on 2011 to 2012  prices. According to this estimate, poverty in India stood at 29.5% in 2011-12 which is significantly higher than the Tendulkar model. The group went for separate rural and urban poverty lines as there is huge complexity associated with them. In the  food  component  the group has been criticised for going back to calorie norms but the new poverty line not only includes calorie component but also proteins and fats. The non- food  component remains an important part of a decent living which includes education, clothing, conveyance, house rent and behaviour related expenditure. The report also talks about relative  poverty and defines the poverty line in terms of median or average consumption expenditure. Poverty is not same as that of hunger which is even worse. It also does not aim for a comfortable standard of living. It only represents an absolute minimum. This measure cannot be suited to various welfare programs that will have to take into account the particular kind of deprivation. Other Benchmarks:  Human Development Index (HDI): It is released by United Nations Development Program. It ranks countries based on Life Expectancy, Education and Per Capita Income. Though not a core measure of poverty, it has become an important for measuring the social and economic well being of people living in any country. India ranked 132 among 191 countries in 2022. India belongs to the category of medium development. UNDP also releases a Gender Inequality index which takes into account the loss of development due to Gender Inequality. In India women are more affected by poverty which contributes to feminization of poverty. Global Hunger Index (GHI): It is a tool to measure the prevalence of hunger. The International Food Policy Research Institute (IFPRI) along with Welthungerhilfe (a German Non Profit Organization) publishes this report. In 2022 GHI Report, India was ranked 107 out of 121 countries. It is estimated using four components such as wasted and stunted children under the age of five, Infant Mortality Rate and the proportion of Undernourished population. Suggested readings: Inclusive Growth Financial Inclusion Type your email… Search Articles Prelims 2024 current affairs. Art and Culture Indian Economy Science and Technology Environment  & Ecology International Relations Polity &  Nation Important Bills and Acts International Organizations Index, Reports and Summits Government Schemes and Programs Miscellaneous Species in news All India Open Test(Simulator X) Poverty in India Sociology: Causes, Perspectives, and Challenges | Sociology Optional for UPSC Civil Services Examination | Triumph IAS Poverty in india sociology, (relevant for sociology optional for civil services examination). Paper 1: Stratification and Mobility Paper 2: Rural and Agrarian transformation in India, Challenges of Social Transformation Table of Contents Toggle Poverty in India Sociology (Relevant for Sociology Optional for Civil Services Examination) Poverty Various theories related to poverty POVERTY AND MARGINALSISED GROUPS There are various causes of poverty and these can be categorised in to the following: Individual causes: Historical Factors: Economic Factors: Political Factors: Socio-Cultural Factors: The Regional Pattern of Poverty: Challenges Ahead: Conclusion Frequently Asked Questions: Related Blogs … Why Vikash Ranjan’s Classes for Sociology? Choose The Best Sociology Optional Teacher for IAS Preparation? Find More Blogs “In India the generally accepted definition of poverty emphasises minimum level of living rather than reasonable level of living.” RUDRA DUTTA Poverty is a level of living that is so low that inhibits the physical, mental, social, cultural, economic development of the individuals or the groups. The problem of poverty in India after Independence can be described in terms of the social classes, castes or groups affected with poverty in rural and urban areas. The word “pauperism” is used to denote extreme poverty . It describes a category of people who are unable to maintain themselves. In recent times there are many dimensions that are considered in looking at poverty. It is no longer seen as purely an economic phenomenon. It is now realised that there are sociological, political, psychological and geographical reasons as well as attitudes or value systems that need to be considered to understand poverty. In dealing with poverty one is not only concerned with the income but also with the individual’s political role, opportunities for his children and self -respect. Poverty is not only a condition of economic insufficiency; it is also social and political exclusion . Poverty is therefore to be seen not only merely in economic terms but also in its social and political aspects. Poverty as a level of living that is so low that it inhibits the physical, mental and social development of human personality . There it has been pointed out that poverty has been with human culture and civilisation since ages. In the beginning of the development of human society human beings were at a low level of social organisation and technological development and that the state of poverty was general in nature, faced by all members of society. In the process of evolution of human society there have been enormous developments in social organisation and technology. However the fruits of this progress have not been equally shared by all sections of society. There have been the rich and there have been the poor. Various theories related to poverty It refers to the behavioral patterns that develop among impoverished individuals as a means of surviving difficult conditions. This culture is distinct from the societal norms and values of the broader society. People living in poverty often become socially isolated and have a narrow outlook beyond their immediate family. They may feel f atalistic, helpless, dependent, and inferior. Their focus is primarily on the present, with little consideration for the future. In essence the culture of poverty is both an adaptation and a response to the marginalization of the poor . It serves as a way to cope with feelings of hopelessness and despair, as the poor realize it is challenging to achieve success according to the values of higher society. This isolation also leads to a lack of participation in various societal activities, including politics, social engagements, and economic opportunities. Additionally, it is suggested that children are socialized into this culture, which can hinder their willingness to take advantage of opportunities for self-improvement, as they may feel insecure in new situations. Situational Perspective : situational or structural view, which interprets the behavior of the poor differently. While acknowledging that the poor exhibit statistically distinct behavior , proponents of this perspective argue that such behavior arises externally as a consequence of their disadvantaged position within a restrictive social structure, rather than being solely internally generated by the unique values of the poor. Poverty ensures that ‘dirty work will get done; t here are many menial jobs that have to be done in society. It is the poor who take up such jobs. Poverty provides a market for inferior goods and services- second-hand clothes, stale food material, poor houses, and services from unqualified persons. Patterns of Deprivation and Alienation Poverty facilitates a life style of the affluent. The work done by the cooks, gardeners, washer men, house cleaners’ etc. enable the upper classes to lead a life of comfort. Poverty provides a group that can be made to absorb the political and economic causes of change. The rich and the government itself have a vested interest in the continuation of poverty. As it tends to provide for the maintenance of the stability of the society. Marxian perspective: Inequality is generated by the capitalist economy where wealth is concentrated in the lands of a few according to Marx. These few gain control of the means of producing wealth such as slaves, land and capital. They are able to influence the political process, by which social inequality is managed. Essentially poverty boils down to this fact that some people are poor because others are rich. Since the rich have greater political power than the poor, the government policy tends to favor them. The rich therefore tend to remain rich and the poor tend to remain poor. Marx claimed that all history is a history of class conflict; hence the situation can change only when the poor have greater political influence. Feminist Perspective : The feminist perspective highlights that poverty is gendered, with women often having limited access to resources compared to men . This perspective underscores the significant marginalization of women, particularly in rural areas of developing countries, due to their gender. Dependency Theory: This theory argues that poor nations remain impoverished because they have been exploited by wealthy nations and multinational corporations. Scholars like A.G. Frank and Wallerstein emphasize that the poverty of less affluent nations results from their historical colonization by European powers, which exploited their resources and either enslaved their populations or exploited them as cheap labour. POVERTY AND MARGINALSISED GROUPS Gender Disparities in Poverty: Gender income disparities are evident, with substantial wage gaps between men and women. Women are increasingly working in the unorganized sector as unskilled labourers or engaging in home-based work with piece wages. Gangopadahay and Wadhwa has highlighted that female-headed households often struggle with poverty due to limited job opportunities and lack of access to credit for starting their businesses. The term “feminization of poverty” has emerged to describe the unique aspects of poverty that directly affect women as a result of the development process. Limited Economic Opportunities : Rural areas often lack diverse economic opportunities, leading to high unemployment and underemployment rates. Agriculture may be the primary source of income, and it can be vulnerable to factors such as weather conditions and market fluctuations. Lack of Access to Education: Limited access to quality education in rural areas can hinder the development of human capital. This lack of education and skills can restrict individuals’ ability to find better-paying jobs. Inadequate Healthcare: Rural areas frequently have limited access to healthcare facilities and services. This can lead to poor health outcomes, higher medical expenses, and reduced labour force participation. Agricultural Challenges : Many rural households rely on agriculture, which can be affected by factors such as soil degradation, water scarcity, and pests. These challenges can reduce agricultural productivity and income. Infrastructure Deficits: Rural areas often face infrastructure deficits, including inadequate roads, electricity, and sanitation facilities. These deficits can impede economic growth and development. Limited Access to Credit: Lack of access to credit and financial services can hinder rural households from investing in income-generating activities or coping with emergencies. Social Exclusion: Rural communities, particularly indigenous or marginalized groups, may face social exclusion and discrimination, limiting their access to resources and opportunities. Environmental Vulnerabilities: Rural areas may be more vulnerable to natural disasters such as floods, droughts, and hurricanes. These events can disrupt livelihoods and damage property, further exacerbating poverty. Land Ownership and Landlessness: Unequal distribution of land and landlessness can be significant issues in rural areas. Those without land or with small landholdings may struggle to make a sustainable living According to Dutt and Sundaram rural poverty directly affects urban poverty because most of the urban poor are migrants from the villages. These people have been driven out of their villages due to poverty there. The poverty ration in rural areas is 32.75 per cent rural areas as compared to 8. 81 per cent in urban areas. Caste-Based Poverty: In India, the caste system is closely linked to poverty. Certain castes have remained at the bottom of the economic hierarchy for generations, often relegated to low-paying menial jobs. These sections of society have experienced social and economic exclusion, missing out on the benefits of the country’s development process. Ethnic Minorities and Indigenous Poverty: significant segments of indigenous populations, known as “adivasis” in India, experience higher levels of poverty compared to the rest of the population. India’s scheduled tribes primarily inhabit natural environments and engage in traditional occupations. Many have been displaced from their natural habitats without proper resettlement or alternative livelihoods, further contributing to their poverty. Poverty And Children: India has worlds’ highest number of poor children, amounting to total 97 million between age 0 to 17 . There are various causes of poverty and these can be categorised in to the following: Individual causes :. In this, the poverty is mainly attributed to the individual and his/her success or failure. Thus, the individual is poor because of his/her personal reasons, that could range from being lazy, ineffective efforts, lack of efficiency and so on. Historical Factors: One historical reason is the low level of economic development under the British colonial administration. There was substantial de-industrialization in India under British rule. British policies involved sharply raising rural taxes that enabled merchants and moneylenders to become large landowners. The policies of the colonial government ruined traditional handicrafts and discouraged development of industries like textiles. The low rate of growth persisted until the nineteen eighties. Economic Factors: Unequal distribution of Economic Resources/Assets/Wealth: The basic economic factor responsible for the problem of poverty in India is the highly unequal distribution of the economic resource of the country among various social classes and castes. The productivity of labour remains low in agriculture due to highly unequal distribution of landholdings.  Big landowners generally do not care much for raising agricultural production because their needs are fulfilled even at low level of production. The small and marginal farmers do not possess enough resources to make adequate use of modern input raising productivity. The urban poor have to lead miserable lives due to their employment in low paid jobs in the unorganised sector, low income activities of self-employment and the problems of unemployment. Social structure: In reality, poverty in India is a social product and not a natural phenomenon, being socially generated, reinforced and perpetuated . It is a consequence of extreme socio-economic inequalities Certain social conditions like lack of educational and employment opportunities and other economic aspects etc. lead to proliferation of poverty and can be categorised under social structure. Ram Ahuja says In India poverty can be attributed to various reasons like lack of educational and employment opportunities, lack of resources or inadequate use of resources, unemployment and so on. It Demographic, natural and psychological factors are off-shoots of the highly inegalitarian structure of society though they play an important role in perpetuating poverty. Political Factors: The political factors have also contributed to the prevalence of mass poverty in India since ages. The state power has been controlled by the privileged ruling class both in the urban and rural areas. The ruling class controls the machinery. It directly or indirectly protects and promotes its class interests. But the mass of the poor people have always remained powerless. Socio-Cultural Factors: The caste system in India perpetuates poverty by imposing rigid occupation restrictions and social distinctions. Beliefs in ‘Karma’ and ‘Dharma’ justify this inequality . Land redistribution policies were largely ineffective, leading to small and unproductive land holdings, farmer suicides, and rural poverty. Materialism widens the rich-poor gap, emphasizing self-interest over humanitarian values. High levels of indebtedness result from social and religious expenditures. The Regional Pattern of Poverty: Poverty in India varies by state. While overall poverty has declined, success in poverty reduction differs across states. Approximately 20 states and union territories have a lower poverty rate than the national average. States like Orissa, Bihar, Assam, Tripura, and Uttar Pradesh still face significant poverty challenges.  In contrast, Kerala, Jammu and Kashmir, Andhra Pradesh, Tamil Nadu, Gujarat, and West Bengal have seen substantial poverty reduction . The problem of poverty continues as ever with an added momentum. The poor have strong feelings of marginality, of helplessness, of dependence, of inferiority, sense resignation, fatalism and low level of aspiration. These tendencies are transmitted from one generation to the next. Therefore, the children of the poor are very often not psychologically geared to take full advantage of the changing conditions or increased opportunities that occur in their life. Thus the problem of poverty gets perpetuated. Challenges Ahead: Poverty has certainly declined in India. But despite the progress, poverty reduction remains India’s most compelling challenge. Wide disparities in poverty are visible between rural and urban areas and among different states. Certain social and economic groups are more vulnerable to poverty. Poverty reduction is expected to make better progress in the next ten to fifteen years. Poverty reduction would be possible mainly due to higher economic growth, increasing stress on universal free elementary education, declining population growth, increasing empowerment of the women and the economically weaker sections of society. The official definition of poverty, however, captures only a limited part of what poverty really means to people. It is about a minimum subsistence level of living rather than a reasonable level of living. Many scholars advocate that we must broaden the concept into human poverty. A large number of people may have been able to feed them. We have travelled about six decades since independence. The objective of all our policies had been stated as promoting rapid and balanced economic development with equality and social justice. Poverty alleviation has always been accepted as one of India’s main challenges by the policy makers, regardless of which government was in power. The absolute number of poor in the country has gone down and some states have less proportion of poor than even the national average. Yet, critics point out that even though vast resources have been allocated and spent, we are still far from reaching the goal. Leave a Reply Cancel reply Your email address will not be published. Required fields are marked * IAS Preparation UPSC Preparation Strategy Policies And Programmes Towards Poverty Alleviation Poverty Alleviation - Programmes And Policies (UPSC Notes) Poverty Alleviation Programmes aims to reduce the rate of poverty in the country by providing proper access to food, monetary help, and basic essentials to households and families belonging to below the poverty line threshold. According to the World Bank, Poverty is a pronounced deprivation in well-being and comprises many dimensions. It includes low incomes and the inability to acquire the basic goods and services necessary for survival with dignity. Poverty also encompasses low levels of health and education, poor access to clean water and sanitation, inadequate physical security, lack of voice, and insufficient capacity and opportunity to better one’s life. As per the Planning Commission of India, the level of poverty in a country can be estimated based on the consumer expenditure surveys that are conducted by the National Sample Survey Office (NSSO) under the Ministry of Statistics and Programme Implementation. This article will talk about the various Poverty Alleviation Programmes in India and the initiatives taken by the Government of India towards poverty alleviation. Candidates preparing for the IAS Exam must have a thorough knowledge of all the poverty alleviation programmes in India. Candidates can also download the notes PDF at the end of this article.  Table of Contents: What is Poverty Alleviation? Poverty Alleviation is the set of steps taken in an economic and humanitarian way to eradicate poverty in a country. According to the World Bank, if a person is living on $1.90 a day or less, then he/she is living in extreme poverty, and currently, 767 million people in the world fall under that category. According to the last released official data, in 2011, 268 million people in India were surviving on less than $1.90 a day. Various Programmes and Schemes under the Government of India were launched to eradicate poverty and to provide basic amenities to poor households.  Schemes like Pradhan Mantri Awas Yojana and Housing for All by 2022 were developed to provide housing to the rural and urban poor. The latest government schemes like Start-Up India and Stand Up India focus on empowering people to earn their livelihood. Candidates would find this article very helpful while preparing for the  Civil Services Exam . Below Poverty Line (BPL) can be defined as an economic benchmark used in the identification of economically weaker people and households. BPL is set by the Government of India based on a threshold income. The households or individuals having an income below this threshold value are considered to be under the below poverty line. Measuring BPL in India  The poverty line solely depends on the per capita income in India rather than the level of prices. The poverty line is the minimum income required to purchase the basic goods and services that are essential to satisfy the basic human needs. The proportion of the population that is below this poverty line is called the poverty ratio or headcount ratio. Similar approaches are followed by most countries and international institutions for determining BPL.  In India, the first official rural and urban poverty lines at the national level were introduced in 1979 by Y. K. Alagh Committee. Criteria for the measurement of BPL are different for the rural and urban areas.  Currently, according to the Tenth Five-Year Plan, the degree of deprivation is measured with the help of parameters with scores given from 0–4, with 13 parameters.  Families with 17 marks or less (formerly 15 marks or less) out of a maximum of 52 marks have been classified as BPL.  The poverty line is calculated every 5 years. According to the recent estimation based on inflation,  the threshold income should be more than Rs. 962 a month for urban areas and Rs 768 a month in rural areas i.e., above Rs. 32 a day in an urban area and above Rs. 26 a day in a rural area.  Poverty Alleviation in India – Five-Year Plans Eleven Five Year Plans were launched to eradicate poverty in India. The list of these Five Year Plans that started in the year 1951 is given below: First Five Year Plan (1951- 1956): The plan focused mainly on agriculture and irrigation and aimed at achieving an all-round balanced development.  Second Five Year Plan (1956-1961): It focused on the growth of basic and heavy industries, expansion in employment opportunities, and an increase of 25 per cent in the national income. Third Five Year Plan (1961-1966): The  Chinese aggression (1962), Indo-Pak war (1965), and the severest drought led to the complete failure of the third five-year plan. It was replaced by three annual plans that continued from 1966 to 1969.  Fourth Five Year Plan (1966-1974): It aimed at increasing national income by 5.5 per cent, creating economic stability, reducing inequalities in income distribution, and achieving social justice with equality. Fifth Five Year Plan (1974-1979): This plan mainly focused on the removal of poverty (Garibi Hatao) and aimed in bringing larger sections of the poor masses above the poverty line. It also assured a minimum income of Rs. 40 per person per month calculated at 1972-73 prices. The plan was terminated in 1978 instead of (1979) when the Janata Government came to power. Sixth Five Year Plan (1980-1985): Removal of poverty was the main objective of the sixth five-year plan with a major focus on economic growth, elimination of unemployment, self-sufficiency in technology, and raising the lifestyles of the weaker sections of the society. Seventh Five Year Plan (1985-90): The Seventh Five Year Plan aimed in improving the living standards of the poor with a significant reduction in the incidence of poverty.   Eighth Five Year Plan (1992-97): This plan aimed at employment generation but later failed in achieving most of its targets. Ninth Five Year Plan (1997-2002): The ninth five-year plan focused on the areas of agriculture, employment, poverty, and infrastructure.  Tenth Five Year Plan (2002-2007): The tenth five-year plan aimed at the reduction of the poverty ratio from 26 per cent to 21 per cent by the year 2007 and also to help the children in completing five years of schooling by 2007.  Eleventh Five Year Plan (2007-2012): The eleventh five-year plan targets towards reducing poverty by 10 percentage points, generating 7 crore new employment opportunities, and ensuring electricity connection to all villages.  Poverty Alleviation Programmes in India As per the 2011-2012 estimation by the Planning Commission of India, 25.7 % of the rural population was under the below-poverty line and for the urban areas, it was 13.7 %. The rate of poverty in the rural areas is comparatively higher than that in the urban areas due to the lack of proper infrastructure, insufficient food supply, and poor employment system.  The major Poverty Alleviation Programmes that were developed with an initiative to eradicate poverty are mentioned in the table below: Integrated Rural Development Programme (IRDP) 1978 Ministry of Rural Development Pradhan Mantri Gramin Awaas Yojana 1985 Ministry of Rural Development Indira Gandhi National Old Age Pension Scheme (NOAPS) 15th August 1995 Ministry of Rural Development National Family Benefit Scheme (NFBS) August 1995 Ministry of Rural Development Jawahar Gram Samridhi Yojana (JGSY) 1st April 1999 Implemented by the Village Panchayats. Annapurna 1999-2000 Ministry of Rural Development Food for Work Programme 2000s Ministry of Rural Development Sampoorna Gramin Rozgar Yojana (SGRY) – – Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)  2005 Ministry of Rural Development National Food Security Mission 2007 Ministry of Agriculture National Rural Livelihood Mission 2011 Ministry of Rural Development National Urban Livelihood Mission 2013 Ministry of Housing and Urban Affairs Pradhan Mantri Jan Dhan Yojana 2014 Ministry of Finance Pradhan Mantri Kaushal Vikas Yojana 2015 Ministry of Skill Development and Entrepreneurship Saansad Aadarsh Gram Yojana (SAGY) 2014 Ministry of Rural Development Pradhan Mantri Jeevan Jyoti Bima Yojana 2015 Ministry of Finance Pradhan Mantri Suraksha Bima Yojana 2015 Ministry of Finance National Maternity Benefit Scheme 2016 Ministry of Health & Family Welfare (MoHFW) Pradhan Mantri Ujjwala Yojana (PMUY) 2016 Ministry of Petroleum and Natural Gas Pradhan Mantri Garib Kalyan Yojana (PMGKY) 2016 Ministry of Finance Solar Charkha Mission 2018 Ministry of Micro, Small and Medium Enterprises (MSME) National Nutrition Mission (NNM), Poshan Abhiyan 2018 Ministry of Women and Child Development Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM) 2019 Ministry of Labour and Employment Prime Minister Street Vendor’s AtmaNirbhar Nidhi – PM SVanidhi 2020 Ministry of Housing and Urban Affairs (MoHUA) Apart from eradicating poverty in India, the Poverty Alleviation Programmes also took the initiative to provide employment opportunities to the households of the BPL categories.  Aspirants can go through the detailed information on various schemes mentioned above in the table below- Role of Public Distribution System in Poverty Alleviation The Public Distribution System (PDS) which evolved as a system of management for food and distribution of food grains plays a major role in poverty alleviation. This programme is operated jointly by the Central Government and the State Government of India. The responsibilities include: Allocations of commodities such as rice, wheat, kerosene, and sugar to the States and Union Territories. Issue of Ration Cards for the people below the poverty line. Identification of families living below the poverty line. Management of food scarcity and distribution of food grains. PDS was later relaunched as Targeted Public Distribution System (TPDS) in June 1997 and is controlled by the Ministry of Consumer Affairs, Government of India. TPDS plays a major role in the implementation and identification of the poor for proper arrangement and delivery of food grains. Therefore, the Targeted Public Distribution System (TPDS) under the Government of India plays the same role as the PDS but adds a special focus on the people below the poverty line. To know more about PDS and TPDS in India , refer to the linked page.  Why is employment generation important in poverty alleviation in India? The unemployment issue in India is considered as one of the major causes of poverty in India. The poverty rate of a country can be reduced with high economic growth and by reducing the unemployment problem. Various poverty alleviation programmes are set up under the Government of India that aim to eradicate poverty by providing employment on-demand and through specific guaranteed wage employment every year to households living below the poverty line.  The generation of employment is important in poverty alleviation because of the following reasons: It will increase the income level of poor household families and will help in reducing the rate of poverty in the country. Hence, there is a significant relationship between unemployment and poverty.  It will decrease the rural-urban migration through the generation of employment programs in rural areas. An increase in the income level through the generation of employment programs will help the poor in accessing basic facilities including education, health facilities, and sanitation. What are the reasons for the ineffectiveness of poverty alleviation programs? The major reasons for the ineffectiveness of the poverty alleviation programs are mentioned below:  The poverty alleviation program may not properly identify and target the exact number of poor families in rural areas. As a result, some of the families who are not registered under these programs benefit the facilities rather than the eligible ones Overlapping of similar government schemes is a major cause of ineffectiveness as it leads to confusion among poor people and authorities and the benefits of the scheme do not reach the poor. Overpopulation in the country increases the burden of providing the benefits of the schemes to a large number of people and thus reduces the effectiveness of the programs. Corruption at various levels of implementation of schemes is another major reason. Candidates preparing for the UPSC 2024  should follow the latest developments in Current Affairs related to other government schemes. Several questions are asked from these sections in both UPSC Prelims and IAS Mains Examination.  Poverty Alleviation Programmes (UPSC Notes):- Download PDF Here IAS General Studies Notes Links Leave a Comment Cancel reply Your Mobile number and Email id will not be published. Required fields are marked * Request OTP on Voice Call Post My Comment IAS 2024 - Your dream can come true! Download the ultimate guide to upsc cse preparation, register with byju's & download free pdfs, register with byju's & watch live videos. 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( Other principles under this declaration can be potential future Essay topics! – please note down ) The topic says that effects of poverty are not localised, but can threaten prosperity everywhere. It’s a sweeping statement, yet true in many instances . Directions : First understand topic in its entirety (don’t just focus on the word – Poverty). Take your time to think over keywords ( Poverty vs Prosperity ) in the topic. Read topic 3-4 times, and while reading the topic keep thinking of related examples/instances – temporally and spatially.   Once you understand topic, write 2-3 lines on rough paper your interpretation of topic in as simple words as possible. Read this interpretation 2-3 times and again look at the topic. This is important because you should not deviate at any cost in your essay .  Then brainstorm on the topic – here, don’t write everything you know. Instead focus only on key dimensions and examples that you want to include. Create a mind map kind of structure.  Start this essay (introduction) with powerful/impactful stat. Or with a quotes taken from important report.  In the introduction, compulsorily contextualise this topic i.e. why this topic is important or relevant today- both globally and in the Indian context.  After writing context, write few lines about the topic and its general meaning. Then, write briefly about  important dimensions that you want to include in the essay (or you may write about most important dimension if you don’t want to reveal all) After introduction, write a thesis statement stating what’s going to be your central argument and how you are going to defend it (in 2-3 lines) In the body, identify 6-7 broad dimensions related to the topic  such as: Poverty vs Security (Wars, civil wars, drug wars, insurgency, terrorism, extremism, radicalism, communalism, genocides, ethnic cleansing etc); Poverty vs Diseases (AIDS, Ebola, Zika, West Nile, Malarial, TB etc); Poverty vs Environment (loss of habitat, loss of vegetation – associated natural disasters, desertification etc); Poverty vs Inequality ;  Poverty vs Food security etc. While writing various dimensions, make sure they are relevant to the topic in question. Don’t deviate. Link arguments to support the topic. Also don’t forget to write your own thoughts about each dimensions (this part where you write your interpretation is key to fetch more marks in essay). For every argument, give examples, or illustrate with suitable illustrations such as stories, fables etc. Also make sure to interlink sub-dimensions within each dimension. There should be linkages between different dimensions as well.  Use stats and data to support or validate your statements/arguments.  Also try to include other dimensions such as where poverty has led to revolutions and in turn prosperity to nations.  Other dimensions could be – intellectual poverty, moral poverty (in addition to material poverty) – their impact on prosperity.  Make your essay engaging and interesting by giving interesting examples from world history, sociology, anthropology etc. (Always think of unique examples or stories or anecdotes) In the conclusion provide more optimistic future of the world where poverty can be eradicated (may be with the advent of machines, or with revolutions – use your imagination).  Go beyond India and make your essay universal.  Our Mission, Vision & Values Director’s Desk Commerce & Accountancy Previous Years’ Question Papers-Prelims Previous Years’ Question Papers-Mains Environment & Ecology Science & Technology 260 IMAGES Essay on Poverty Essay on POVERTY (UPSC CAPF AC PAPER 2 ESSAY TOPICS 2019) by AVKS Poverty Essay 3 Poverty: Effects and Causes Free Essay Example Essay on Poverty The Cause and Effect of Child Poverty Free Essay Example COMMENTS Poverty The Global Multidimensional Poverty Index-2018 released by the UN noted that 271 million people moved out of poverty between 2005-06 and 2015-16 in India. The poverty rate in the country has nearly halved, falling from 55% to 28% over the ten-year period. Still a big part of the population in india is living Below the Poverty Line. Poverty Anywhere is a Threat to Prosperity Everywhere The poverty line lies at 1,286 rupees per month for urban areas and 1,059.42 rupees per month for rural areas Karol Bagh | IAS GS ... IAS GS Foundation Course | 29 May, 6 PM Call Us. This just in: Mains Marathon 2024 UPSC IFoS Prelims Result 2024 UPSC CSE Prelims Result 2024 UPSC ... Essay. Prev Next. Poverty Anywhere is a Threat to Prosperity ... Poverty Poverty is a multidimensional concept. Poverty is a state or condition in which a person lacks the resources for a minimum standard of living. Traditionally, the term poverty refers to lacking enough resources to provide the necessities of life - food, clean water, shelter, and clothing. But modern economists extend the term to include access ... Poverty 2016. It was launched to distribute 50 million LPG connections to women of Below Poverty Line (BPL) families. Impact of LPG reform on reducing poverty in India. reveals that poverty declined by 1.36 percentage points per annum after 1991, compared to that of 0.44 percentage points per annum prior to 1991. Poverty and Developmental Issues Global Multidimensional Poverty Index (MPI) 2022: 415 million individuals in India were able to escape multidimensional poverty in the last 15 years between 2005-2006 and 2019-21, with the incidence of poverty exhibiting a sharp drop from 55.1% to 16.4%. 18.7% is classified as vulnerable to multidimensional poverty (260.9 million people in ... Poverty Poverty is a state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living. Poverty means that the income level from employment is so low that basic human needs can't be met. Poverty is said to exist when people lack the means to satisfy their basic needs. Poverty in India: Reasons, Responses, Solutions The poverty rate in India likely increases to 9.7% in 2020, up sharply from the January 2020 forecast of 4.3%. From 2011 to 2019, the number of poor in India was estimated to have decreased to 78 million from 340 million. In 2020, the number increased by 75 million. Poor: People with incomes of USD 2 or less a day. Poverty and Developmental Issues 1. Absolute poverty. It describes a state in which a person consistently falls short of earning enough money to cover at least one or more essential expenses for a long time. It can be calculated in terms of money, calories, or nutritional attainment. UPSC CSE 2025: Study Plan ⇓. (1) ⇒ UPSC 2025: Prelims cum Mains. Poverty and Hunger Notes for UPSC Exam 415 million exited poverty in India in 15 years from 2005 till 2022. Asian Development Bank figures: In India, 21.9% of the population lives below the national poverty line in 2011. In India, the proportion of the employed population below $1.90 purchasing power parity a day in 2022 is 5.7%. Poverty Estimation in India The MPI 2023 estimates show a near-halving of India's national MPI value and a decline from 24.85% to 14.96% between 2015-16 and 2019-21. This reduction of 9.89 percentage points implies that about 135.5 million people have exited poverty between 2015-16 and 2019-21. Besides, the intensity of poverty, which measures the average deprivation ... Poverty in India Notes for UPSC Exam Indian poverty using the new poverty line of $2.15 per day, 10 per cent of Indians were poor in 2019, down from 22.5 per cent in 2011. Poverty in India. [World Bank Report, 2022] 2011 (Tendulkar Committee) 2019. Total Poverty. 22%. 10%. Rural Poverty. Poverty and developmental issues Poverty and developmental issues. Poverty is the state of one who lacks a usual or socially acceptable amount of money or material possessions. These may be defined as narrowly as "those necessary for survival" or as broadly as "those reflecting the prevailing standard of living in the community.". Turn your UPSC IAS dreams into reality ... Paper on India's Poverty: World Bank India is not a member of this. Source: HT. It sheds light and analyzes the latest paper on India's poverty published by the world bank. Extreme poverty in India was 12.3% points lower in 2019 compared with 2011, as poverty headcount rate declined from 22.5% in 2011 to 10.2% in 2019, with a comparatively sharper decline in rural areas. Poverty in India |ForumIAS Based on this 972 INR (Rs 32 per day) in rural areas and 1407 INR (Rs 47 per day) in urban areas is calculated based on 2011 to 2012 prices. According to this estimate, poverty in India stood at 29.5% in 2011-12 which is significantly higher than the Tendulkar model. The group went for separate rural and urban poverty lines as there is huge ... Poverty in India Sociology: Causes, Perspectives, and Challenges Explore the multifaceted issue of poverty in India Sociology, including its historical roots, various perspectives such as cultural, structural, and Marxist, and the impact on marginalized groups like women, rural communities, and caste-based disparities. ... AMAN SAURABH RANK 645 (UPSC CSE 2023) UPSC ESSAY MOCK TEST TOPICS | Education is the ... Poverty Alleviation The poverty line is calculated every 5 years. According to the recent estimation based on inflation, the threshold income should be more than Rs. 962 a month for urban areas and Rs 768 a month in rural areas i.e., above Rs. 32 a day in an urban area and above Rs. 26 a day in a rural area. Understanding Poverty in India: Causes, Consequences, and Solutions Enroll now for UPSC Online Course. International Case Studies on Poverty Alleviation: Best learning to reduce poverty in India. China: China has lifted over 800 million people out of poverty since 1978. Factors responsible for success: rapid economic growth, investment in education and healthcare, and social safety nets. Brazil: Brazil has lifted over 30 million people out of poverty since 2003. Main Causes of Poverty in India: Complete Notes for UPSC Exam Poverty in India. Poverty in India traces its roots to multiple reasons, which start from as old as the colonial era. According to the last official estimate of Poverty released by the Planning Commission in 2011-12, the poverty rate was said to be 21.92%, which was estimated using the Tendulkar Committee's suggestions. Poverty Estimation in India According to recent reports, more than a quarter of the population living in rural areas of India is below the poverty line. Out of the total population living in the rural parts of India, 25.7% is living below the poverty line whereas in the urban areas, the situation is a bit better with 13.7% of the population living below the poverty line. Poverty Estimation Insights Weekly Essay Challenges 2018 Insights Weekly Essay Challenges 2018 - Week 42 Archives 22 October 2018 Write an essay on the following topic in not more than 1000-1200 words: Poverty anywhere is a threat to prosperity everywhere Hint to Topic: It is one of the key principles declared at the International Labour Organisation(ILO) Declaration of Philadelphia, 1944. (Other … Continue reading "Insights Weekly Essay ... Poverty In India : UPSC Note on Poverty In India by Unacademy Poverty an underlying cause of many social issues we will study about its causes, widespread impact on the society, calculation methods (poverty line, headcount method), various reports on declining poverty rate. Poverty is defined as a lack of material goods or a low level of income. In India, the Planning Commission was the nodal agency for ... Poverty And Development Issues Poverty is a multidimensional phenomenon in which a person or community lacks the financial resources and essentials for a minimum standard of living. ... Indian Polity and Governance Notes for UPSC Preparation; PART-I (CONSTITUTIONAL FRAMEWORK) Indian Constitution: Evolution, Features and Making of a Democratic Framework ... PDF Poverty Poverty is a state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living. Poverty means that the income level from employment is so low that basic human needs can't be met. According to World Bank, Poverty is pronounced deprivation in well-being, and comprises many dimensions. UPSC Issue at a Glance UPSC Issue at a Glance is a new initiative of UPSC Essentials to focus your prelims and mains exam preparation on an issue that has been in the news. Every Thursday, cover a new topic in Q&A format and don't miss MCQs, Points to Ponder and key takeaways. Also, don't forget to check the answers of MCQs towards the end of the article. This week's topic is Mpox and Public Health Emergency. assignment essay homework paper phd report resume review speech thesis