POVERTY (10 marks)
Definition of Poverty: Poverty refers to a state in which an
individual is unable to fulfill even the basic necessities of life. The
minimum requirements include food, clothing, housing, education
health facilities.
Poverty line (poverty threshold) is the minimum level of income
needed to meet basic needs such as food, clothing and shelter in a
particular country or region. Average calorie intake in rural area is
approximately 2212 kcal per person per day and in urban area is
approximately 2240 kcal per person per day.
Types of poverty :
1) Absolute poverty: Absolute poverty refers to a situation when
a person is unable to meet the minimum consumption level. It
refers to the total number of people living below poverty line.
2) Relative Poverty: it refers to poverty of people in relation to
other people, regions or nations. Relative poverty compares the
inequality of income and asset ownership. It helps in
understanding the relative position of the different groups of the
population.
Causes of poverty :
1) High growth rate of population: The growth rate of population
in India has always been higher than economic growth of the
nation. This leads to fall in per capita availability of goods and
services.
2) Underdeveloped economy: it is the main cause of poverty in
India. Lack of jobs or low paying jobs leads to poor standard of
living. Poor state of infrastructural facilities also results in slow
pace of development. Underdeveloped state of Indian economy is
clear from the backwardness of agriculture and industrial sectors.
Reema Haldankar
(Teacher Grade I_ Page 1
3) Inequalities of income and wealth: Inequalities in the
distribution of income and wealth cause poverty to a large extent.
It is because of concentration of power in few hands that the
income is not equally distributed. Benefits of economic
development have been enjoyed by the richer class and the poor
have been deprived of them.
4) Social factors: India faces many social problems like
Illiteracy, ignorance, caste system, conservatism which prevent
people from taking initiative and innovations. This attitude and
approach of people hinders economic growth. By not adopting
new methods of production and accepting changes in life, people
remain within vicious circles of poverty.
5) Rise in general price level: Continuous rise in price especially of
basic and essential goods has added to the problem of poverty.
Combination of rise in prices and lower levels of income as
decreased the real income (purchasing power) of people resulting
in poor quality of life and lower standard of living.
Policies and programmes towards poverty alleviation (reduction)
/Government schemes.
1) Mahatma Gandhi National Rural Employment Guarantee Act
2005, popularly known as MGNREGA :The aim of the act is to
provide guaranteed wage employment to every household whose
adult volunteer is to do unskilled manual work for a minimum of
100 days in a year. Under this act all those who are ready to work
at the minimum wage can report to work in areas where this
programme is implemented.
2) Praadhsn Mantri Awas Yojana(PMAY) : ( 25 June 2015)is a
credit –linked subsidy scheme by the Government of India to
facilitate access to affordable housing for the low and moderate
income residents of the country. It envisaged a target of building
2 crore affordable houses by 31 march 2022.
Reema Haldankar
(Teacher Grade I_ Page 2
3) Deendayal Antyodaya yojana – National Rural livelihood
Mission (DAY- NRLM) : Is a flagship scheme by the Indian
government to address poverty and provide livelihood support for
both rural and urban populations.
The scheme operates under two major components
a) DAY –NULM (National Urban Livelihood Mission) which targets
the urban poor by providing skill development, self-employment
opportunities etc.
b) DAY- NRLM: (National rural Livelihood Mission) focused on
empowering poor rural households and women through self-help
groups and access to financial services.
4) National Social Assistance Programme (NSAP): Is launched by
the Indian government in 1995, is a centrally sponsored scheme
providing social security pensions to the poor and destitute in
India.it is administered by the Ministry of Rural Development and
aims to provide a minimum standard of social assistance to
households in case of old age ,death of a breadwinner or
maternity , focusing on below poverty line (BPL) individuals.
5) Pradhan Mantri Gram Sadak Yojana (PMGSY) : or Prime
Minister Rural Roads scheme, is an Indian government initiative
launched in 2000 to provide all weather road connectivity to
unconnected rural habitations aiming to reduce poverty and uplift
rural social economic conditions.
Reema Haldankar
(Teacher Grade I_ Page 3
