Class XII

INDIAN ECONOMIC DEVELOPMENT

Madan Kumar
1
M.A.,M.A.,[Link].,[Link].,M.B.A.,
 poverty
• Poverty is not only a challenge for
India, as more than one-fifth of the
world’s poor live in India alone; but
also for the world, where about 300
million people are not able to meet
their basic needs.

Madan Kumar
2
M.A.,M.A.,[Link].,[Link].,M.B.A.,
 Meaning
• Poverty refers to a state in which an
individual is unable to fulfil even the
basic necessities of life. The
minimum requirements included
food, clothing, housing, education
and health facilities.

Madan Kumar
3
M.A.,M.A.,[Link].,[Link].,M.B.A.,
 Who are poor?
• Starvation and hunger are the key
features of the poorest house-holds. The
poor lack basic literacy and skills and
have very limited economic
opportunities. Poor people also face
unstable employment.

Madan Kumar
4
M.A.,M.A.,[Link].,[Link].,M.B.A.,
 Poor in Urban and Rural areas
• Urban areas - ?

• Rural areas – landless, two days meals,

lack basic literacy and skill and have very
limited economic opportunities.

Madan Kumar
5
M.A.,M.A.,[Link].,[Link].,M.B.A.,
 Characteristics of Poor People
• Hunger and starvation
• Poor health
• Debt trap
• Weak bargaining power
• Lack of facilities of electricity and water
• Gender inequality
• Identification on the basis of occupation
• Migration to urban areas.

Madan Kumar
6
M.A.,M.A.,[Link].,[Link].,M.B.A.,
 Measures of Poverty
• Relative poverty is also interpreted in terms of
inequality of income within the country ..in India,
share of 20 % of low income group of people in the
national income is barely 8.5% while that of 20 % of
high income group of people is 46.2 %
• Absolute poverty in India, persons who spend ₹816
on consumption in rural areas and 1000 in urban
areas per month at 2011-2012 prices are treated as
those below the poverty line (Calorie intake)

Madan Kumar
7
M.A.,M.A.,[Link].,[Link].,M.B.A.,
 How are poor people identified ?
• In pre independent India , Dadabhai Naoroji was the first to
discuss the concept of a poverty line ..jail cost of living…he
assumed that one-third population consisted of children and
half of them consumed very little while the other half
consumed half of adult diet…three forth of the adult jail cost
living
• in post independence
• 1962 – the planning commission formed study group
• 1979 – task force on projection of Minimum needs and
Effective Consumption Demand
• 1989 and 2005- expert group

Madan Kumar
8
M.A.,M.A.,[Link].,[Link].,M.B.A.,
 Categorizing poverty
• The chronic poor, transient and non poor

• Poor and non poor

Madan Kumar
9
M.A.,M.A.,[Link].,[Link].,M.B.A.,
• Chronic poor- who are always poor
sometimes have a little more money
• Transient poor- regularly move in and out of
poverty
• Non poor – never poor
• Poor – the absolutely poor

Madan Kumar
10
M.A.,M.A.,[Link].,[Link].,M.B.A.,
 Poverty line
• Monthly Per Capita Expenditure
• Calories in take = 2400 calories for rural
person 2100 calories for urban person
• 2011 -12 =₹ 816 rural area ₹1000 urban area

Madan Kumar
11
M.A.,M.A.,[Link].,[Link].,M.B.A.,
• Limitation of poverty

Madan Kumar
12
M.A.,M.A.,[Link].,[Link].,M.B.A.,
 Poor in India
• Head count ratio
• The official data given by Planning commission
it is estimated on the basis of consumption
expenditure data collected by NSSO
• In 1973-74 more than 320 million people were
BPL that is 55% of total population
• 2011 – 12 come down to 270 million i.e 22 %
of total population
Madan Kumar
13
M.A.,M.A.,[Link].,[Link].,M.B.A.,
• 1990s the absolute poor in rural area declined
but urban increased marginally
• The gap between rural and urban areas of
absolute poverty was same in 1999-2000 and
has widened in 2011 – 12
• Odisha, Madhya Pradesh , Bihar and Uttar
Pradesh are still far above the national
poverty level.
• West Bengal and Tamil Nadu reduced
Madan Kumar
14
M.A.,M.A.,[Link].,[Link].,M.B.A.,
 Causes of poverty
• Impact of British rule in Indian economy-India
started exporting food gains and as a result as
as many as 26 million people died in famines
between 1875 and 1900
• Economic condition of farmers since
independence and sate indebtedness
• High growth rate of poplution
• Widespread of unemployment
• Low level of capital formation
Madan Kumar
15
M.A.,M.A.,[Link].,[Link].,M.B.A.,
• Lack of infrastructure
• Inequalities of income and wealth
• Rise in general price level
• Lower level of education
• Social factors
• Political factor
• Improper utilisation of resources

Madan Kumar
16
M.A.,M.A.,[Link].,[Link].,M.B.A.,
 Measures to remove poverty

• Solving poverty by accelerating the pace of

economic growth
• Solving poverty by reduction in inequalities of
income and wealth
Fiscal measures
Legislative measures
• Solving poverty through popluation control

Madan Kumar
17
M.A.,M.A.,[Link].,[Link].,M.B.A.,
 Other measures
• Agricultural development
• Control over inflation
• Increasing in generation of employment
opportunities
• Minimum needs programme for the poor
• Regional balanced growth
• Development of industries
• Public distribution system should be
strengthened
• Provision of social security
Madan Kumar
18
M.A.,M.A.,[Link].,[Link].,M.B.A.,
 Policies and programmes towards
poverty alleviation
• Growth oriented approach
 rapid increase in GDP and per capita income
Rapid industrial development
Populaation control
Benefits of economic growth have not trickled
down

Madan Kumar
19
M.A.,M.A.,[Link].,[Link].,M.B.A.,
 Specific poverty alleviation
programme
• Rural employment generation programme-
khadi and village industries commission
• Prime minister’s rozgar yojana –VIII plan 7 lakh
micro enterprices – 2003-2005, 3.5 million
people got employment
• Swarna jayanti shahari rozgar yojana – centre
sate ratio 75:25 .in DEC. 1997 urban self
emplyment programme and urban wage
employment programme started

Madan Kumar
20
M.A.,M.A.,[Link].,[Link].,M.B.A.,
• Swarnajayanti gram swarozgar yojana –April 1
1999- micro enterprise-SHG- National rural
livelihood mission
• Sampoorna grameen rozgar yojana – Sep 2001
– wage employment – unskilled workers –
shared by centre and state
• Mahatma gandhi national rural emeployment
gurantee act, 2005- NREGS Feb 2006,-National
food for work programme

Madan Kumar
21
M.A.,M.A.,[Link].,[Link].,M.B.A.,
 Meeting minimum needs of poor
• Through public expenditure on social consumption needs
• Improvement in health and education
• This approach – fifth five year plan
• Three major food and nutritinal status are PDS , Integrated
Child Development Scheme and Mid day meals scheme.
• PMGY
• Pradhan Mantri Gram Sadak Yojana
• Pradhan Mnatri Gramodaya Yojana (Gramin Awas)
• Pradhan Mantri Gramodaya yojana –Rural drinking water
projects

Madan Kumar
22
M.A.,M.A.,[Link].,[Link].,M.B.A.,
 Social Security Programmes
• National Old Age Pension Scheme
• National Family Benefit Scheme
• National Maternity Benefit Scheme
• Pradhan Mantri Jan-Dhan Yojana – 2014-
• 1 lakh accident insurance and ₹30000 life
insurance

Madan Kumar
23
M.A.,M.A.,[Link].,[Link].,M.B.A.,
 Critical evaluation of PAP
• Achievements
Brought down BPL from 37.2%in 2004-05 to
about 28% in 2011-12
Wage rate have increased due to legislative
measures
The three approch reduces poverty level.

Madan Kumar
24
M.A.,M.A.,[Link].,[Link].,M.B.A.,
• Shortcomings of PAPs
 due to unequal distributionof land and oter
assets the benefits form direct poverty
alleviation programmes have been
appropriated by the non poor
Compared to the magnitude of poverty ,
programme is not sufficient
These programme are depend on government
and banks ----
Madan Kumar
25
M.A.,M.A.,[Link].,[Link].,M.B.A.,
 Madan Kumar
26
M.A.,M.A.,[Link].,[Link].,M.B.A.,