Poverty – Estimates, Causes, and Solutions
🟠 Topic 19: Poverty – Estimates, Causes, and Solutions
📌 Introduction
Poverty is one of the most persistent and complex challenges faced by India and many developing nations. Despite significant economic growth over the past few decades, poverty eradication remains a major focus of government policies and development programs. Poverty is not just about low income, but also about lack of access to education, healthcare, housing, and basic services.
🔹 What is Poverty? ⚠️
📖 Definition
Poverty refers to a condition where individuals lack sufficient income and resources to meet basic needs like food, clothing, shelter, healthcare, and education.
🔎 Types of Poverty
| Type | Explanation |
|---|---|
| Absolute Poverty | Lacking basic resources for survival (below the poverty line). |
| Relative Poverty | Being poor compared to others in the society. |
| Chronic Poverty | Persistent poverty across generations. |
| Transitory Poverty | Temporary poverty due to shocks (natural disasters, job loss). |
🔹 Poverty Estimation in India 🇮🇳
🔎 Poverty Line
- Poverty Line defines the minimum income needed to meet basic needs.
- India’s official poverty estimation was based on calorie intake criteria (2400 kcal rural, 2100 kcal urban).
- Tendulkar Committee (2009) shifted to consumption expenditure-based poverty line.
- Rangarajan Committee (2014) revised poverty line, adding health, education, and clothing costs.
📊 Official Poverty Line (Rangarajan Committee)
| Area | Monthly Per Capita Expenditure (₹) |
|---|---|
| Rural | ₹972 |
| Urban | ₹1407 |
🔎 Multidimensional Poverty Index (MPI)
- Published by NITI Aayog for India.
- Measures deprivations across health, education, and living standards.
- 16.4% of India’s population (2023) classified as multidimensionally poor.
🔹 Causes of Poverty in India ⚠️
1️⃣ Historical Causes
- Colonial Exploitation – Deindustrialization under British rule destroyed traditional livelihoods.
- Land Alienation – Colonial land revenue systems like Zamindari led to widespread rural indebtedness.
2️⃣ Economic Causes
- Low Productivity – Agricultural productivity remains low due to:
- Small landholdings.
- Poor irrigation.
- Lack of modern technology.
- Jobless Growth – Rapid economic growth post-1991 failed to generate proportionate employment.
- Informal Sector Dominance – 90% of workforce employed in low-wage informal jobs.
3️⃣ Social Causes
- Caste and Gender Discrimination – Marginalized communities (SC, ST, OBC) face exclusion from economic opportunities.
- Gender Wage Gap – Women earn less than men for the same work.
4️⃣ Policy and Governance Issues
- Leakages in Welfare Programs – Corruption and inefficiency in delivering subsidies and benefits.
- Urban Bias in Policies – Rural areas underfunded compared to urban centers.
5️⃣ Environmental and Climate Factors
- Droughts, Floods, and Climate Change disrupt agriculture and livelihoods.
- Migration to cities increases urban poverty and slum populations.
🔹 Consequences of Poverty 🌐
- Malnutrition and Hunger – Weakens workforce productivity.
- Illiteracy – Limits economic mobility.
- Poor Health Outcomes – Higher infant mortality, maternal mortality.
- Crime and Social Unrest – Rising inequality leads to discontent.
- Intergenerational Poverty – Poverty passes from parents to children.
🔹 Poverty Alleviation Strategies in India 🇮🇳
1️⃣ Economic Growth with Job Creation
- Shift towards labour-intensive sectors.
- Boost MSMEs, agro-based industries, and rural enterprises.
2️⃣ Rural Development Programs
- MGNREGA – Guaranteed rural employment.
- PMGSY – Rural road connectivity.
- NRLM – Rural livelihood promotion through SHGs.
3️⃣ Direct Benefit Transfers (DBT)
- Replacing subsidies with cash transfers directly into beneficiary accounts.
- Ensures better targeting and transparency.
4️⃣ Social Security & Food Security
- NFSA (National Food Security Act) – Legal entitlement to subsidized food grains.
- Ayushman Bharat – Health coverage for low-income families.
5️⃣ Financial Inclusion
- PM Jan Dhan Yojana – Bank accounts for all.
- PM Mudra Yojana – Loans for micro-entrepreneurs.
6️⃣ Education & Skill Development
- Samagra Shiksha Abhiyan – Universal quality education.
- Skill India – Job-oriented vocational training.
7️⃣ Focused Support for Vulnerable Groups
- SC/ST Sub-Plans.
- Beti Bachao Beti Padhao – Focus on girl children.
- PM Van Dhan Yojana – Tribal livelihoods.
🔹 Role of Technology in Poverty Alleviation 💻
- Aadhaar-linked Direct Transfers reduce leakages.
- Digital Literacy Campaigns empower rural citizens.
- E-commerce platforms connect rural artisans to markets.
🔹 Key Statistics (2023)
| Indicator | Value |
|---|---|
| Poverty Headcount Ratio (MPI) | ~16.4% |
| Extreme Poverty (World Bank) | ~10% |
| Rural Poverty Rate | Higher than urban |
| Most Affected Groups | SC, ST, Women, Landless Labourers |
📚 Practice MCQ
1️⃣ Consider the following statements regarding poverty estimation in India:
- The Tendulkar Committee introduced a calorie-based poverty line.
- The Rangarajan Committee included expenditure on health and education in the poverty line.
- Multidimensional Poverty Index (MPI) tracks deprivations across health, education, and living standards.
Which of the above statements are correct?
✅ Options:
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
2️⃣ Which scheme provides guaranteed rural employment?
✅ Options:
(a) PM Kisan
(b) MGNREGA
(c) PMGSY
(d) Skill India
3️⃣ Consider the following statements regarding Multidimensional Poverty Index (MPI):
- It measures poverty only in terms of income.
- It includes health and education indicators.
- It is published by NITI Aayog for India.
Which of the above statements are correct?
✅ Options:
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
4️⃣ Which of the following is a major cause of rural poverty in India?
✅ Options:
(a) High urban wages
(b) Low agricultural productivity
(c) Excessive FDI
(d) Rising exports
5️⃣ Which is the world’s first national family planning program?
✅ Options:
(a) China’s One-Child Policy
(b) India’s Family Planning Program (1952)
(c) USA’s Planned Parenthood
(d) Brazil’s Population Policy
