In this essay we will discuss about Poverty in India. After reading this essay you will learn about:- 1. Meaning of Poverty 2. Causes of Poverty 3. Suggestions for the Removal 4. Estimation 5. Poverty Alleviation Programmes of the Government.
Contents:
- Essay on the Meaning of Poverty
- Essay on the Relative and Absolute Poverty
- Essay on the Causes of Poverty
- Essay on the Suggestions for the Removal of Poverty
- Essay on the Estimation of Poverty
- Essay on the Poverty Alleviation Programmes of the Government
Essay # 1. Meaning of Poverty:
“Poverty is a social phenomenon in which a section of society is unable to fulfil even its basic necessities of life.”
The minimum needs are food, clothing, housing, education and other basic minimum human needs. Humanity faces pains and miseries if it does not attain a subsistence level of such needs.
“Poverty line is a cutoff point on the income distribution, which divides the population poor and non-poor”. People below poverty line’ are poor and above that line are average or rich.
Poverty line is therefore a derivation from inequality of income distribution. However cut-off level of income of expenditure is determined differently in different countries and regions.
Planning commission of India defines it as, “Poverty line is drawn on the basis of barest” minimum desirable nutritional standards of 2400 calories per person per day in rural areas and 2100 calories for urban areas.”
Others define it as, “Persons who spend Rs. 356.3 per month on consumption expenditure in rural areas and Rs. 538.6 per month in urban areas on 2004-05 prices fall on poverty line.” Below this standard of expenditure, people are poor.
“International organisations often refer to one dollar a day and two dollars a day for poverty line. People with income below 2 dollars a day are poor and people with income below one dollar a day are very poor.” Thus, poverty line can be fixed (one dollar criterion) at 350 dollars a year.
Dada Bhai Naroji took jail cost of living’ to define poverty line. People must get those facilities in their day-to-day life which a prisoner gets. Below that level of expenditure, poverty, is measured.
Essay # 2. Relative and Absolute Poverty:
Relative Poverty:
It refers to a comparative study of different classes, regions and different countries. The country or class of people whose level of subsistence is low, is treated poor or relatively poor in comparison with a class of people having high level of subsistence. UNO, in a report determined, people with two dollars a day as poor and one-dollar a day as very poor.
World Development Report published in 2002 gives the following data on few countries:
From, this data, we can safely conclude that India is a poor country as compared to developed countries. It is for this reason. It is known to be an under developed country.
Absolute Poverty:
Absolute poverty refers to a section of society, who is unable to have even basic necessities of life or fails to attain a minimum standard of living.
It is determined on the basis of following two criterions:
(a) Minimum Calories Criterion
(b) Minimum Consumption Expenditure Criterion
(a) Minimum Calories Criterion:
Planning Commission in 1977 defined poverty line on the basis of consumption of calories. Calories intake depends upon, nutritional level of food items. It defined 2400 calories per person per day in rural areas and 2100 calories in Urban areas. Below this level they are treated as people living “below poverty line.
(b) Minimum Consumption Expenditure Criterion:
In India, most of the estimator are determining poverty on the basis of minimum consumption expenditure required per person-per month. It refers to a different amount for rural and urban areas.
On the basis of 2004 05 price, monthly consumption expenditure in rural areas is Rs. 355.3 and for urban areas is Rs. 538.6 per month per person. People falling below this level are known to be poor or below poverty line. These estimates are made by NSSO 61st round of consumer expenditure data.
Essay # 3. Causes of Poverty in India:
Main causes of existing poverty in India are:
(i) Rapid Increase in Population:
In India, population has a heavy pressure on it. It is increasing at the rate of 1.9% per annum i.e. 1.7 crore number increases every year. Thus growth of population has taken an explosive stage. It results into a lower per capita income and ultimately a higher extent of poverty in the country.
(ii) Lack of Capital:
Because of low per capita income, people have a low capacity to save. As a result there is a deficiency of capital. It finally affects the growth of agriculture and industry, overall production and income level in the country falls and thus deficiency of capital becomes the major cause of Indian poverty.
(iii) No Full Utilisation of Natural Resources:
In India there is an abundance of natural resources, but due to lack of capital, able entrepreneurs and lack of technical knowledge these resources are not fully exploited. As a result production and income level remains low. It became a major cause of Indian poverty.
(iv) Unequal Distribution of Income:
There is unequal distribution of income. In-spite of 60 years of planning, the gap between rich and poor is widening. More than 50% of the national wealth lies in the hands of 20 big industrial houses. On the other hand most of the Indian community is suffering from extreme poverty.
(v) Increase in Prices:
In India general price level is on the rise which lowers purchasing power in the hands of the people. As a result there is a rise in the extent of poverty among the and lower class. Thus inflation raises the number of middle poor persons.
(vi) Slow Rate of Growth:
Growth rate had been quite less during plan period. During years of planning, this rate has varied between 3-5% to 5% per annum Per capita growth had been 2% per annum that has resulted into destitute and poverty.
(vii) Unemployment:
Unemployment is also one of the major reason of Indian poverty. There exists open and disguised unemployment in Indian rural and urban sector. There is more than 1 crores registered unemployed in employment exchanges of India. There are about 4 crores unemployed people in the country which result into a higher extent of poverty.
(viii) Backwardness of Agriculture:
Agriculture is our prime occupation. Almost 65% people are dependent upon it, with the continuous rise in population, pressure on land is continuously increasing. However Indian agriculture is backward and therefore it yields less output per acre. It results in less per capita income in agriculture sector finally leaving this into extreme poverty.
(ix) Industrial Backwardness:
Although Indian economy is unbalanced and of peculiar feature. It is predominantly an agricultural economy, using backward technique and therefore community is living in extreme poverty.
It could not develop industries during British time rather whatever prestigious small scale industry existed in the country was destroyed Britishers for their self-interest. Thus lack of proper industrial development caused a low income, output and employment from this sector. It also contributed much towards the extent poverty in India.
(x) Defective Educational System:
Most of rural Indians are illiterate and even educated people do not have a right kind of education. It is not employment oriented. As is felt, people remain unemployed even after achieving higher education.
(xi) Political Causes:
Political reasons are also responsible for Indian poverty. British Rule for almost 200 years and colonial policy of Britishers made Indian economy as helpless, weak and poor. They destroyed prestigious cottage and small scale industry of India. They never gave any attention to the development of industrial and agricultural growth of country rather made an exploitation of Indian natural wealth. Ultimately India was left as a dependent and a poor country.
(xii) Social Causes:
Social causes are also responsible for the poverty in India. Besides, India being a country of several languages, castes and creeds it has various types of social institutions with a variety of customs, dogmas and superstitions.
While living in a joint family problem most of the people are dependent. Law of inheritance results into sub-division and fragmentation of land holding. Blind faith in religion, fatalism, purdah system etc. have also been hindrance on the way of higher earning rather keep every Indian in a vicious circle poverty.
Essay # 4. Suggestions for the Removal of Poverty:
Following measures can be suggested to alleviate poverty from India:
1. Control on Population:
Population control will help in raising per capita income. It can made through Family Planning measures and creating awareness among people for the benefits of a small family. By raising per capita income, it will help in lowering people below poverty line.
2. Increase in Production:
Production in each sector should be raised to remove poverty. For raising agricultural production, land reforms should be made effective. Arrangement for improved seeds, chemical fertilisers, developed agricultural appliances, arrangement for irrigation facilities should be made.
Similarly for raising industrial production, modern techniques should be used in Indian industries and encouragement to small scale industries should be made. It will help in raising quick production and rise in employment opportunities.
3. Equal Distribution of Income:
Poverty removal is also possible through removal of inequalities of income. It will help in transferring income from asset owning persons to non-asset owning persons. Poor persons will get more resources for their private consumption that will help in the removal of poverty.
4. Capital Formation:
There is a need of huge capital formation for a developing country. It requires a rise in growth rates of saving and investments. For this purpose, there should be a check upon extravagance habits of the people and better opportunities for investment should be made available to them. Higher growth rate of capital formation will help in accelerating economic growth rate, higher level of national and per capita income which in turn helps in removing poverty.
5. Change in Educational System:
Education should be made widespread which can bring public awareness and widens mental horizon. Educated people can get employment easily. They can raise their level of income, improve their standard of living and finally help in removing poverty. However education system must be made as employment-oriented.
6. Suitable Atmosphere:
For the removal of poverty, social atmosphere must be made congenial to economic development. For this purpose people must be educated, their attitude should be made progressive and logical. People should not believe in casteism, social customs, superstitions and conservatism. Besides, it is also essential that political, administrative and scientific organisations should be established in accordance with economic development.
7. Control over Price Rise:
Price control measures should be adopted so that standard of living of poor workers is not adversely affected. They must be given due compensation for price rise.
8. Increase in Employment:
One of major reason of poverty is unemployment. For removing poverty in rural sector small scale and cottage industry should be encouraged. Similarly multiple cropping system should be adopted for removing disguised unemployment. Besides govt. should encourage new industries, development projects for creating more opportunities in urban sector. For this purpose cheap credit facilities should be provided to industrial sector.
9. More Investment:
There are some states in India which are living with extreme poverty such as Uttar Pradesh, Bihar, Madhya Pradesh, Orissa etc. which are known as backward states. Higher investment is needed to remove poverty from such states.
10. Use of Proper Techniques:
In India, capital intensive techniques are more in vogue as compared to labour intensive technique which is giving rise to poverty. In-fact intermediate technique should be adopted in India in order to promote employment and removal of poverty from the country.
11. To implement the Programme Effectively:
Govt., is regularly introducing poverty alleviation programmes in the country. However these programmes are not effectively implemented in the country. As a result, such programmes become more or less a ‘Paper Plan’ and do not reach to the actual beneficiary.
12. Rapid Economic Development:
Economic development rate is very low in our country. It is hovering around 5% per annum which causes poverty in the country. Planners have a target of bringing poverty level to the extent of 20% by the end of 2007. It is only possible if 8% growth rate per annum is achieved. It must mentioned here that poverty from India can only be alleviated if above mentioned measures are adopted simultaneously.
Redistributive Measures:
Poverty is a relative concept. It arises due to inequalities of income and wealth.
Government of India must adopt following steps to check it:
(a) Gainful wages and self-employment opportunities for poor class.
(b) Minimum indirect taxes on wage goods consumed by workers and progressive taxation come and wealth.
(c) Ceiling on landholdings and surplus land for landless farmers with required amount of finance.
(d) Minimum wages should be guaranteed by Govt. to every workers,
(e) Stringent measures against exploitation of child and women labour.
(f) Adequate expansion of free social services, health and education for rural and urban poor.
(g) Increased output of wage goods to be made available for poor at reasonable prices.
(h) Availability of cheaper credit for poor so as to create self-employment opportunities for them.
Essay # 5. Estimation of Poverty in India:
In India poverty is estimated on the basis of ‘Heard Count Ratio’ or on the basis of minimum consumption expenditure. In 1973-74 estimation of poverty was made on the basis of consumption expenditure through Sample Method.
Planning Commission has prepared several estimates through several basis. However latest estimates are made by NSSO in its 61st round on the basic of 2004-05 prices.
Trend and Extent of Poverty in India:
During five year plans, several programmes have been introduced to alleviate poverty in India, yet there had been an increase in the number of poor persons in the country. There are about 32.1 crore persons living below poverty line in 1973-74. It remained almost stagnant during a decade of 1973- 1983 but in 1999-2000 it come down to 26 crores.
Poverty in rural sector had always been on higher side as compared to Urban India but it came down in 1999-2000 in both rural and urban sector. In 2004-05 its extent is almost 21.8%. By the end of Tenth Plan number of poor persons are expected to come down to 22 crores.
A brief analysis showing absolute trend in poverty in India is shown through following table:
According to multidimensional Poverty Index 41.6 percent of population in India is living below. The poverty line during 2000 to 2008 whereas the Natural poverty index for the same period shares the population below poverty line is 28.6 percent.
Trend of State Level Poverty in India:
In India different states have different number of poor persons. Uttar Pradesh, Bihar, Rajasthan, Uttaranchal, Madhya Pradesh etc. have relative more number of poor persons as compared to other states. In percentage form Bihar has the highest percentage of persons living of below poverty line i.e. 43% and Punjab as the lowest i.e. 2%.
A comparative study of rich and poor states in shown as below:
Extent of Poverty:
After independence, main object of Govt. of India had been lowering of Indian poverty. It is for this reason, heavy expenditure was made during each plan, yet on the basis of 30 days recall in 1999-2000, 26% of Indian population remained below poverty line.
In actual fact, % of poverty in 1973-74 was 549% in 1973-74 which come down to 26% in 1999-2000. It was 21-8% in 2004-05 on all India bases as reported by Economic Survey 2007-08. Main reason behind it, is a fall in percentage of poverty in both rural and urban sectors.
During these years, poverty percentage has come to a less than Half It is shown through following table:
Essay # 6. Poverty Alleviation Programmes of the Government:
Govt. has introduced several measures for the removal of poverty from India. During Sixth Plan, removal of poverty was given a top priority. Till the end of tenth plan, govt. aims at bringing down people below poverty line to the extent of 20%.
Following programmes have been introduced by the Govt. of India for solving the problem of poverty:
1. Swarna Jayanti Gram Swarozgar Yojana-SJSR:
It is restructured simple employment programme launched on April 1,1999 which replaces Integrated Rural Development Programme (IRDP), Training for Rural Youth per Self-Employment (TRYSEM), Development of Women and Children in Rural Areas (DWCRA) and Million Wells Scheme WS). Under this scheme, poor will be granted bank loans and subsidies to establish small enterprises on individual as well as collective basis.
It has 30% of the cost of the project as, subsidies for individuals and 50% for self-help groups. Besides this scheme is also centrally sponsored on 75 : 25 basis, 75% by centre and 25% by states. However this Yojana is implemented through panchayat Samiti an ‘monitored by loan granting bank. About 51 lakhs self-employed persons were benefitted upto 2005. Moreover upto Dec. 2007 Rs. 19340.32 crs = been spent upon this scheme.
2. Swarna Jayanti Shahri Rozgar Yojana-SJSRY:
The scheme was initiated on 1,Dec.l997. Its main object is to provide self-employment to unemployed youth of urban areas. It includes youth educated upto IX th standard yet living below poverty line. It is also based on 75% centre and 25% state’s contribution in expenditure required for the scheme. 358 lakh people benefitted from this scheme upto Nov. 2007.
3. Sampoorna Grameen Rozgar Yojana-SGRY:
This scheme was introduced in 2001 with the following objectives:
(i) To make available employment and food security in rural areas.
(ii) To construct fixed assets for society as well for rural community.
Contribution in this plan is to be made by 75% centre and 25% by states.
Employment Assurance Scheme (EAS) and Jawahar Gram Samridhi Yojan are also merged with this scheme April, 2002. Upto 31 Dec. 2007, it provided 11.6 crores man-days employment. This scheme will be submerged in National Rural Employment Guarantee scheme from April, 2008.
4. Prime Minister’s Rozgar Yojana-PMRY:
This plan was initiated in 1993- 94 in urban sector which was further expanded in 1994-45. It helps in providing employment to educated unemployed youth. In 2004-05,375 lakh youth could get benefits from it.
5. Prime Minister Gramodaya Yojana:
It was initiated in 2000-01 with the object of improving standard of living of the people.
In this plan, a special attention was paid to following sectors:
(a) Health,
(b) Primary Education,
(c) Drinking water
(d) Housing,
(e) Rural Roads,
(f) In 2001-2002, rural electrification has also been added to it. In 2004-05, Rs. 2800 cities were spent on this scheme.
6. Small and Cottage Industries:
Govt. for alleviating poverty and unemployment, special attention has paid for the development of small and cottage industry. This sector is already providing employment to 283 lakh people. It encourages self-employment schemes by spending heavy expenditure on it. In 2005-06, business limit for small entrepreneurs has been raised from Rs. 3 crore to Rs. 4 crore. It will help in raising employment opportunities in small scale industries.
7. Prime Minister Gram Sadak Yojana-PMGSY:
This scheme was initiated on 25th Dec. 2000. It is centrally sponsored plan which constructs roads along with the provision of wages to poor.
This scheme aims at banking all those villages having a population of 500 or more with main roads running for all the 12 months a year. However in mountainous and desert areas, the population size for villagers has been reduced to 250.
Progress:
In 2004-05, Rs. 2468 crores were spent on this plan. About 11000 road construction work has been completed which has connected almost 13000 areas with roads. According to this scheme, Rs. 60000 crores are to be spent in seven years. It is expected that by the end of this scheme, 10 crores of rural villagers will be uplifted form poverty line. Up to Dec. 2007, about 1.43 lakh road works has been completed with the total expenditure of Rs. 27382 crs.
8. National Social Assistance Programme-NSAP:
This programme was initiated during 1995-96. It provides three types of services to poor people.
(i) National Old Age Pension Scheme-NOAPS
(ii) National Family Benefit Scheme NFBS
(iii) National Maternity Benefit Scheme-NMBS.
Whole of expenditure on this scheme is spent by central Govt. but since April 2001, NMBS has been handed over to ministry of health and family welfare.
9. Antodya Ann Yojana-A AY:
This scheme was introduced on Dec. 25, 2001. Under this scheme, one crore poor persons have been identified out of people living below poverty line for public distribution system (PDS). Each such family will be provided with 35 kgs of food grains wheat at the rate of Rs. 2 per kg and rice at the rate of Rs. 3 per kg.
To meet with the objects of this scheme 42 lakh tons of food grains was procured from central pool till 2005. In 2005-06, the scope of Antodya Ann Yojna is widened. 2-5 crores people living below poverty line have been, included in it. This scheme will create employment for 63 man-days.
10. Public Distribution System:
Poor people are provided food grains on cheaper rates through 4 lakh fair price shops so as to assure food security to them. In some states, this scheme is implemented in both rural and urban areas. Almost 3% of Govt. budget is spent on this scheme. Public distribution system has helped poor people adequately throughout the country.
11. Balmiki Ambedkar Awas Yojana:
This scheme was launched Dec. 2001 for harijan peoples living in slums. It aimed at raising their standard of living under Nirmal Bharat Abhiyan. Govt. targeted to spend Rs. 753 crores for this scheme and aimed to provide 49312 new type of toilet beats to 350084 houses till Dec. 2004. However it could provide this facility to 50% of targeted families so far. Presently Govt. is merging this scheme to Indira Awas Yojana.
12. Integrated Child Development Scheme-ICDS:
Under this scheme mothers and children below 6 years have got some financial aid.
13. Mid-Day Meals Scheme-MDMS:
Under this scheme, school children are provided with free mid-day meals. It encourages the children of poor families to join schools.
14. Indira Awas Yojana (LAY):
This scheme aims at providing dwelling units, free of cost to the poor families of scheduled castes, scheduled tribes and labourers living below poverty line. The scheme is funded on a cost sharing basis of 75:25 between centre and states. During financial year of 2007-08, Rs. 4032.7 crores was earmarked for this scheme to build 21.27 lakh houses. However 9.39 lakh houses have been built up in different states till Nov. 2007.
Poverty Alleviation in Tenth Plan:
Indian Govt. has kept Rs. 3,47,391 crores in tenth plan for the development of social services, which is 22-8% of total public outlay. This amount will be spent on education, medical and public health, housing and urban development for uplifting the poor section. Its main object is to reduce poverty on percentage basis at 5% in urban sector and 15% in rural sector.
Under tenth plan following programmes had been adopted for poverty alleviation:
(i) Special efforts will be made for the development of small and rural industries so as to provide employment in rural sector in non-agricultural area.
(ii) Special efforts will be made for consolidating economic conditions of marginal and small farmers, artisans and untrained labourers.
(iii) Special encouragement will be given for alleviating poverty among female section by introducing special schemes, especially by introducing food for work schemes in natural calamities affected areas.
(iv) Village committee will be provided with funds only when their own contribution in total expenditure ranges between 5% to 15%.
(v) In emergent areas, a wage employment programme should be implemented. Special attention should be paid for running/ productive works such as rural roads, water shed development, cleanliness and proper maintenance of rural ponds, growing more trees, irrigation and drainage system etc.
(vi) Rural Development Funds should be used for the state-run successful rural development schemes. Their implementation and increase in budget allocation should be properly scrutinized.
Steps to be taken under Eleventh Plan for the Removal of Poverty:
1. To accelerate GDP growth rate from 8% to 10% so as to double per capita income till 2016-17.
2. To increase agricultural GDP growth rate to 4% per year to ensure broader spread of benefits.
3. To create 70 mn additional employment opportunities.
4. To raise real wage rate of unskilled workers by 20%.
5. To construct 60 lakh houses for rural poor.