Chapter: Poverty as a Challenge
1. Introduction
Poverty is one of the biggest challenges faced by India.
It means a situation in which a person is unable to get the minimum
necessities of life — food, clothing, shelter, education, and healthcare.
Every fourth person in India is poor (as per data at the time of the
chapter).
Poverty is not only about low income but also about lack of basic human
needs and social exclusion.
2. Poverty as Seen by Social Scientists
Social scientists look at poverty as more than just lack of money.
Two common ways to look at poverty:
1. Social Exclusion: Poor people are excluded from better
surroundings, schools, healthcare, etc.
2. Vulnerability: Poor people are more exposed to risks like illness,
job loss, or natural disasters and lack means to cope.
Poverty is thus seen as multi-dimensional — it affects living standards,
health, education, and dignity.
3. Poverty Line
The poverty line is an imaginary line that separates the poor from the
non-poor.
It is based on minimum consumption needs.
In India, it is measured using monthly per capita expenditure on food,
clothing, fuel, education, and health.
According to earlier data:
o Rural areas: people consuming less than ₹816 per month (per
person) were considered poor.
o Urban areas: less than ₹1000 per month.
These figures vary from state to state and are revised periodically to
account for inflation.
4. Poverty Estimates
Based on National Sample Survey Organisation (NSSO) data:
o In 1973–74: about 55% of India’s population was below the
poverty line.
o In 2011–12: it reduced to about 22%.
Although the number of poor has decreased, the absolute number is still
large due to population growth.
Poverty reduction is uneven across states and regions.
5. Inter-State Disparities
Poverty is not equally distributed in India.
States like Bihar, Jharkhand, Odisha, Madhya Pradesh, and Uttar
Pradesh have high poverty ratios.
States like Kerala, Tamil Nadu, Punjab, and Himachal Pradesh have
low poverty ratios.
Reasons for differences:
o Economic growth,
o Land reforms,
o Availability of jobs,
o Education and healthcare facilities.
6. Global Poverty Scenario
Poverty exists worldwide, though its severity differs.
South Asia (India, Pakistan, Bangladesh, Nepal), Sub-Saharan Africa,
and parts of Latin America have high poverty.
China and some East Asian countries have significantly reduced
poverty due to rapid economic growth and investment in human
resources.
The World Bank defines the international poverty line as people living
on less than $1.90 per day (PPP).
7. Causes of Poverty
Major causes include:
1. Colonial Rule: British policies destroyed traditional industries and
reduced self-sufficiency.
2. Low Economic Growth: Slow industrial and agricultural growth after
independence.
3. Unequal Distribution of Resources: Benefits of growth not equally
shared.
4. Unemployment and Underemployment: Many people work in low-
paying, unskilled jobs.
5. Social Factors: Caste system and discrimination.
6. High Population Growth: Increases demand for resources, lowering per
capita income.
7. Lack of Education and Skills: Limits employment opportunities.
8. Anti-Poverty Measures
The government has launched several poverty alleviation programs:
(a) Promotion of Economic Growth
Economic growth helps create employment and income.
(b) Targeted Anti-Poverty Programmes
Major government programmes:
1. Mahatma Gandhi National Rural Employment Guarantee Act
(MGNREGA), 2005
o Provides 100 days of wage employment to rural households.
2. Prime Minister Rozgar Yojana (PMRY):
o Helps educated unemployed youth start self-employment.
3. Rural Employment Generation Programme (REGP):
o Promotes self-employment in rural areas.
4. Swarnajayanti Gram Swarozgar Yojana (SGSY):
o Helps rural poor become self-employed through SHGs.
5. National Rural Livelihood Mission (NRLM):
o Focuses on skill development and self-help groups.
(c) Providing Basic Services
Improvement in education, health, sanitation, and housing reduces
poverty in the long term.
9. The Challenges Ahead
Despite progress, India still faces challenges:
o Large number of poor people,
o Unequal distribution of wealth,
o Regional imbalances,
o Social discrimination,
o Vulnerability to inflation and natural disasters.
Future Goals:
o Provide sustainable employment,
o Ensure inclusive growth,
o Improve human resource development,
o Strengthen social security.