POVERTY
PRESENTED BY:
Saloni Saini
Anshul
Sejal
Aayushi
Drishti
OUTLINE OF PRESENTATION
❖What is Poverty?
❖Types of Poverty
❖Causes of Poverty
❖Estimation of Poverty
❖Poverty rate
❖What can we do?
❖Government initiative
❖Conclusion
WHAT IS POVERTY?
Poverty refers to the lack of adequate financial resources such that
individuals, households, and entire communities don't have the means to
subsist or to acquire the basic necessities for a flourishing life. This
absence of means can result in struggles to obtain food, clothing, shelter,
and medicine.
Poverty is both an individual concern as well as a broader social problem.
At the individual or household level, not being able to make ends meet
can lead to a range of social, physical, and mental issues. At the societal
level, high poverty rates can be a damper on economic growth and be
associated with problems like crime, unemployment, urban decay, poor
education, and poor public health.
TYPES OF POVERTY
ABSOLUTE POVERTY RELATIVE POVERTY
▪ Also known as extreme poverty ▪ It is defined from the social
or abject poverty, it involves the perspective as a living
scarcity of basic food, clean standard compared to the
water, health, shelter, education, economic standards of the
and information. Those who population living in the
belong to absolute poverty tend surroundings. Hence it is a
to struggle to live and measure of income inequality.
experience a lot of child deaths For example, a family can be
from preventable diseases like considered poor if it cannot
malaria, cholera, and water- afford vacations, cannot buy
contamination-related diseases. presents for children at
Absolute Poverty is usually Christmas, or cannot send its
uncommon in developed young to the university.
countries.
CAUSES OF POVERTY
Poverty in India is the result of historical, economic, social, and political factors. Some of
the major causes include:
1. British Colonialism and Its Long-Term Impact
• The British drained India’s wealth through exploitative economic policies such as the
drain of wealth theory (as argued by Dadabhai Naoroji).
• The deindustrialization of Indian handicrafts led to massive unemployment, as British
manufactured goods replaced Indigenous industries.
• The focus on cash crops over food crops caused frequent famines, such as the Bengal
Famine of 1943, which resulted in millions of deaths.
• Heavy taxation on farmers and zamindari policies increased rural distress and
landlessness.
• Lack of industrial development under British rule left India economically weak after
its independence, with limited infrastructure and industries.
2. Unemployment
A large number of the workforce is engaged in the informal sector with low wages and no
job security.
3. Rapid Population Growth
High population growth puts pressure on resources like food, healthcare, and education.
Per capita income remains low as more people compete for limited jobs.
4. Unequal Distribution of Wealth
A small percentage of the population controls a major share of wealth, while millions
struggle to meet basic needs.
The urban-rural divide creates economic disparities.
5. Inflation and Rising Cost of Living
Essential goods and services are becoming increasingly expensive, making it harder for
poor families to survive.
6. Social Inequality and Discrimination
Caste-based and gender-based discrimination limit opportunities for marginalized groups.
Women, Dalits, and tribal communities often face economic exclusion and lower wages.
7. Corruption and Inefficiency in Government Policies
Leakages in welfare schemes prevent resources from reaching the needy.
Delayed implementation of poverty alleviation programs reduces their effectiveness.
HOW DO WE ESTIMATE POVERTY?
Estimating poverty involves measuring the economic and social conditions of individuals and
households. Various methods are used to determine poverty levels in a country. Some of the key
ways to estimate poverty include:
1. Poverty Line Approach
The poverty line is the minimum income or consumption level required to meet basic needs like
food, shelter, clothing, and healthcare. Individuals below this threshold are considered poor.
India’s Poverty Line:
•The Tendulkar Committee (2009) set the poverty line based on monthly consumption expenditure:
• Rural areas: ₹27 per day
• Urban areas: ₹33 per day
•The Rangarajan Committee (2014) revised these figures:
• Rural: ₹32 per day
• Urban: ₹47 per day
2. Multi-Dimensional Poverty Index (MPI)
Developed by UNDP and Oxford Poverty & Human Development Initiative (OPHI),
MPI considers multiple factors beyond income. It measures deprivation in three
dimensions:
[Link] – Child mortality, nutrition
[Link] – Years of schooling, school attendance
[Link] of Living – Electricity, drinking water, sanitation, housing, cooking fuel,
assets
MPI is a better measure as it reflects broader aspects of poverty rather than just
income.
POVERTY RATE IN INDIA AS PER THE RECENT REPORT
• According to the recently released NITI Aayog report on the Multidimensional Poverty Index 2023,
around 135 million Indians (One-tenth of the population) managed to escape poverty between 2016
and 2021, with significant progress observed in ‘standard of living’ indicators contributing to this
positive change.
▪ Notably, Bihar and Uttar Pradesh (UP) together accounted for a substantial portion of this progress,
with 56.8 million individuals from these two states successfully moving out of multidimensional
poverty. The report also indicates that the number of Indian states with less than 10%
multidimensional poverty has doubled in a span of 5 years.
▪ According to a United Nations report, India has witnessed a remarkable achievement of 415 million
people coming out of poverty over a span of 15 years. This significant progress represents a positive
transformation in the economic and social conditions of a large section of the population.
In 2005/2006, approximately 645 million people were experiencing multidimensional poverty. This
number decreased to about 370 million in 2015/2016 and further declined to about 230 million in
2019/2021. These figures illustrate a substantial positive change, reflecting the success of poverty
alleviation efforts in the country during this period.
WHAT CAN WE DO?
Changing strategy
of economic growth
Public distribution Access to clean
system water and sanitation
MEASURES
Speeding TO REDUCE Human resource
Economic growth POVERTY development
Non-farm Infrastructure
employment Rural growth development
GOVERNMENT INITIATIVE
• National Rural Employment Programme (NREP)
• National Maternity Benefit Scheme (NMBS)
• Rural Labour Employment Guarantee Programme (RLEGP)
• National Family Benefit Scheme (NFBS)
• TRYSEM Scheme
• National Old Age Pension Scheme (NOAPS)
• Jawahar Rojgar Yojna (JRY)
• Outlawing bonded labour
• Swarna Jayanti Gram Swarozgar Yojna
• Modifying law to prevent the centralization of wealth
• National Social Assistance Programme (NSAP)
• Antyodaya Plan
• Rural Housing Programme
• Small Farmers Development Programme (SFDP)
• Pradhan Mantri Rojgar Yojna
• Drought Area Development Programme (DADP)
• Nehru Rozgar Yojna (NRY)
• Twenty Point Programme
• Self-Employment Programme for the Urban Poor (SEPUP)
• Food for Work Programme
CONCLUSION
Poverty remains a significant challenge in India, affecting millions despite
economic progress. While government schemes like MGNREGA, PMJDY,
Ayushman Bharat, and PMAY have improved livelihoods, challenges such as
unemployment, inequality, and lack of education persist. A holistic approach that
strengthens education, employment, healthcare, rural development, and social
security is essential. Effective implementation, public awareness, and
collaboration between the government, private sector, and communities can drive
sustainable poverty reduction, ensuring a more inclusive and equitable future for
all.