write an essay on poverty in indian context

Cultural India

Poverty in india: causes, effects and solutions.

“Poverty is humiliation, the sense of being dependent on them, and of being forced to accept rudeness, insults, and indifference when we seek help.” —Latvia 1998

In the simplest term, poverty may be defined as a social condition where individuals do not have financial means to meet the most basic standards of life that is acceptable by the society. Individuals experiencing poverty do not have the means to pay for basic needs of daily life like food, clothes and shelter.

Poverty also staves people off from accessing much needed social tools of well-being like education and health requirements. The direct consequences stemming from this problem are hunger, malnutrition and susceptibility to diseases which have been identified as major problems across the world. It impacts individuals in a socio-psychological way with them not being able to afford simple recreational activities and getting progressively marginalized in the society.

The term poverty is interconnected with the notion of the poverty line/ threshold that may be defined as the minimum figure of income that is required in a particular country for maintaining the socially acceptable quality of life in terms of nutritional, clothing and sheltering needs. The World Bank has updated its international poverty line figures to 1.90 USD (Rs. 123.5) per day on October 2015 (based on prices of commodities in year 2011-2012), from 1.5 USD(Rs. 81) as a response to the changes in the cost of living across the world as per current economy. The organization estimates that – “Just over 900 million people globally lived under this line in 2012 (based on the latest available data), and we project that in 2015, just over 700 million are living in extreme poverty.”

Poverty is a worldwide cause of concern even in economically stable countries like the USA. Current statistics state that over half the populations in the world, about 3 billion people, are forced to live on less than 2.5 dollars per day. In India, as per 2014 government reports, monthly per capita consumption expenditure is Rs. 972 per person in rural areas and Rs. 1407 per person in urban areas. This data is currently being accepted as the poverty threshold of the country. As of 2015, 21.9% of the total population lives below the national poverty threshold, as per the data of Asian Development Bank, that’s a whopping 269.7 million individuals not having enough money.

Causes of Poverty in India

Factors contributing to the persistent problem of poverty in the country are many and they need to be identified in order to be addressed properly. They can be categorized under the following heads.

1. Demographic – the main factor that contributes to poverty-ridden state of the country from a demographical point of view is the problem of over population. The growth of population in the country has so far exceeded the growth in economy and the gross result is that the poverty figures have remained more or less consistent. In rural areas, size of the families is bigger and that translates into lowering the per capita income values and ultimately lowering of standard of living. Population growth spurt also leads to generation of unemployment and that means diluting out of wages for jobs further lowering income.

2. Economic –there are a host of economic reasons behind persistence of the poverty problems which are outlined hereunder:-

a. Poor Agricultural Infrastructure –Agriculture is the backbone of Indian economy. But outdated farming practices, lack of proper irrigation infrastructure and even lack of formal knowledge of crop handling has affected the productivity in this sector tremendously. As a consequence there is redundancy and sometimes complete lack of work leading to decreased wages that is insufficient for meeting daily needs of a labourer’s family plunging them into poverty.

b. Unequal distribution of assets – with the economy changing directions rapidly, the earning structure evolves differently in different economic income groups. Upper and middle income groups see a faster increase in earnings than lower income groups. Also assets like land, cattle as well as realty are distributed disproportionately among the population with certain people owning majority shares than other sectors of the society and their profits from these assets are also unequally distributed. In India it is said that 80% wealth in the country is controlled by just 20% of the population.

c. Unemployment – another major economic factor that is causative of poverty in the country is the rising unemployment rate. Unemployment rates is high in India and according to a 2015 survey data, at the all-India level, 77% of families do not have a regular source of income.

d. Inflation and Price hike – the term Inflation may be defined as an increase in prices of commodities coinciding with the fall in the purchasing value of money. As a direct consequence of inflation, effective price of food, clothing items as well as real estate rises. The salaries and wages do not rise as much in keeping up with the inflated prices of commodities leading to effective decrease of the per capita income.

e. Faulty economic liberalization – the LPG (Liberalization-Privatization-Globalization) attempts initiated by the Indian Government in 1991 were directed towards making the economy more suited to international market-trends to invite foreign investments. Successful to certain extent in reviving the economy, the economic reforms had detrimental effects on increasing the wealth distribution scenario. Rich became richer, while the poor remained poor.

3. Social – The various social issues plaguing the country that contributes towards poverty are:-

a. Education and illiteracy – Education, rather its lack thereof and poverty form a vicious cycle that plagues the nation. Not having enough resources to feed their children, the poor consider education to be frivolous, preferring children to start contributing to the family’s income rather than draining them. On the other hand, lack of education and illiteracy prevent individuals from getting better paying jobs and they get stuck at jobs offering minimum wages. Improvement of quality of life gets hindered and the cycle once again comes into action.

b. Outdated Social Customs – Social customs like the caste system cause segregation and marginalization of certain sections of the society. Certain castes are considered untouchables still and are not employed by upper caste, leaving very specific and low paying jobs that they can live off. Economist K. V. Verghese put forth the problem in a very lucid language, “Caste system acted as a spring­board for class exploitation with the result that the counterpart of the poverty of the many is the opulence of the few. The second is the cause of the first.”

c. Lack of skilled labour – lack of adequate vocational training makes the huge labour force available in India largely unskilled, which is unsuitable for offering maximum economic value. Lack of education, much less higher education, is also a contributing factor towards this.

d. Gender inequality –the weak status attached with women, deep-rooted social marginalization and long embedded perceptions of domesticity renders about 50% of the country’s population unable to work. As a result the women of the family add to the number of dependents that need to be fed instead of being able to contribute considerably in the family income which might assuage the poverty situation of the family.

e. Corruption – despite considerable efforts from the government in the forms of various schemes to mollify the poverty situation, allegedly only 30-35% actually reaches the beneficiaries due to wide-spread practices of corruption in the country. Wealthy people with privileged connection are able to acquire more wealth simply by bribing government officials to maximize their profits from such schemes while the poor remain in a state of neglect for not being able to assert such connections.

4. Individual – individual lack of efforts also contribute towards generating poverty. Some people are unwilling to work hard or even not willing to work altogether, leaving their families in the darkness of poverty. Personal demons like drinking and gambling also leads to draining of the family income inciting poverty.

5. Political – in India, socio-economic reform strategies has been largely directed by political interest and are implemented to serve a choice section of the society that is potentially a deciding factor in the elections. As a result, the issue is not addressed in its entirety leaving much scope of improvements.

6. Climatic – maximum portion of India experiences a tropical climate throughout the year that is not conducive to hard manual labour leading to lowering of productivity and the wages suffer consequently.

Effects of Poverty

The resounding effect of poverty echoes through various layers of an India citizen’s life. If we try to have a systematic look at them, we should proceed under the three following heads:-

1. Effect on Health – one of the most devastating effects that poverty has is on the overall health of the nation. The most prominent health issue stemming from poverty is malnutrition. The problem of malnutrition is widespread in all age-groups of the country but children are most adversely affected by this. Limited income in larger families leads to lack of access to sufficient nutritious food for their children. These children over time suffer from severe health problems like low body weight, mental, physical disabilities and a general poor state of immunity making them susceptible to diseases. Children from poor backgrounds are twice as susceptible to suffer from anemia, nutrient deficiencies, impaired vision, and even cardiac problems. Malnutrition is a gross contributor of infant mortality in the country and 38 out of every 1,000 babies born in India die before their first birthday. Malnutrition among adult also leads to poor health in adults that leaches their capacity for manual labour leading to a decrease in income due to weakness and diseases. Poverty also causes definite decline in the sanitary practices among poor who cannot afford proper bathrooms and disinfectants. As a result susceptibility to waterborne diseases peak among the poor. Lack of access to as well as means to procure appropriate treatment also affects overall mortality of the population which is lower in poor countries than developed nations like the USA.

2. Effects on Society – poverty exerts some gravely concerning effects over the overall societal health as well. These may be discussed along the following lines:-

a. Violence and crime rate – incidence of violence and crime have been found to be geographically coincident. In a backdrop of unemployment and marginalization, the poor resort to criminal activities to earn money. Coupled with lack of education and properly formed moral conscience, a poverty ridden society is more susceptible to violence by its people against its own people from a sense of deep-seated discontent and rage.

b. Homelessness – apart from a definite drop in the esthetic representation of the country, homelessness affects child health, women safety and overall increase in criminal tendencies.

c. Stress – lack of money is a major cause of stress among the middle-class and the poor and leads to decline in productivity of individuals.

d. Child labour – one of the hallmarks of a poverty-ridden society is the widespread practices of exploitation and the worst of it comes in the form of child labour. Large families fail to meet the monetary needs of the members and children as young as 5 years are made to start earning in order to contribute to the family income.

e. Terrorism – proclivity of youth towards terrorism stems from a combination of extreme poverty and lack of education making them susceptible to brainwashing. Terrorist organizations offer poverty-ridden families money in exchange for a member’s participation in their activities which induces a sense of accomplishment among the youth.

3. Effect on Economy –poverty is a direct index indicating success of the economy of the country. The number of people living under the poverty threshold indicates whether the economy is powerful enough to generate adequate jobs and amenities for its people. Schemes providing subsidies for the poor of the country again impose a drain on the economy.

The measures that should be taken to fight the demon of poverty in India are outlined below:-

1. Growth of population at the current rate should be checked by implementation of policies and awareness promoting birth control.

2. All efforts should be made to increase the employment opportunities in the country, either by inviting more foreign investments or by encouraging self-employment schemes.

3. Measures should be taken to bridge the immense gap that remains in distribution in wealth among different levels of the society.

4. Certain Indian states are more poverty stricken than others like Odhisha and the North East states. Government should seek to encourage investment in these states by offering special concessions on taxes.

5. Primary needs of people for attaining a satisfactory quality of life like food items, clean drinking water should be available more readily. Improvement of the Subsidy rates on commodities and Public Distribution system should be made. Free high school education and an increased number of functioning health centers should be provided by the government.

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Poverty In India Essay

Poverty is a situation in which people do not have enough money for basic necessities or survival, such as food and shelter. Due to the poor income of the people, they cannot even meet their basic needs. Here are a few sample essays on the topic of ‘poverty’.

• 100 Word Essay On Poverty In India

Poverty is the financial state of the individual or family in which they are unable to meet their basic needs in life. A poor person does not earn enough to buy basic necessities such as a 2-time meal, water, shelter, cloth, the right education, and many more. In India, overpopulation and underdevelopment is the main cause of poverty. India's poverty can be decreased with a few effective programs, in which the government should focus on developing the rural areas by providing primary education, implementing population control policies, creating jobs, and providing basic necessities at subsidized rates. Poverty is a very serious problem in the whole world and many efforts are being made to eradicate poverty.

200 Word Essay On Poverty In India

500 word essay on poverty in india, causes of poverty, poverty situation in india, how to solve poverty in india.

Poverty is defined as a situation wherein a person or family lacks the money to fulfil basic needs. Poor people don’t have good enough money to make a decent living; they don't have the funds for housing, nutrition, and schooling which are vital for survival. So, poverty can be understood absolutely as a lack of money, or extra extensive, obstacles to everyday human life.

Mahatma Gandhi once said that poverty is the worst form of violence. Poverty has been proven as the biggest hurdle in the development of India. Since 1970, the Indian government has made eradicating poverty a priority in its 5-year plans. Policies are made to ensure food security, housing, and employment through more access to increasing salary employment and enhancing access to simple social services. The Indian authorities and non-governmental corporations have initiated numerous new programs to relieve poverty, like easy entry to loans, enhancing agricultural techniques and price supports, and providing vocational skill training to people so they can get jobs. These measures have helped eliminate famines, reduce absolute poverty ranges, and decreased illiteracy and malnutrition.

The occurrence of rural poverty has declined in the past years because of rural-to-city migration. A severe limit on population growth is necessary to address the issue of poverty.

Poverty is a condition in which a person lacks basic necessities of life. This consists of food, water, clothes, and shelter. Moreover, people living on or below the poverty line don’t have enough money to buy even a single meal a day. They somehow survive with whatever they could discover on the street – salvaging food from the trash, sleeping on park benches or the roadside and depending on the charity of those with more resources.

There are many factors that are responsible for poverty. The principal causes are unemployment, illiteracy, increasing population, and lack of proper schooling and training. Humans are no longer able to earn a livelihood since they are unable to find and obtain employment. They're not able to feed their family. The other causes of poverty include war, natural disasters, political instability, and many others.

India is undoubtedly one of the most populous democracies, and its economic structure is rapidly increasing. India is still considered a developing country as opposed to a developed one. Poverty is one such issue, which creates hurdles in the development of India. A good sized portion of the population in India lives in poverty. Even 75 years after gaining our freedom, we still have problems, and poverty has troubled our country. India has a very excessive rate of poverty, which affects its progress.

Many business and public region organizations have effectively labored with the federal and state governments to cope with this difficulty. Their principal aim is to abolish poverty in India completely. Together, they have been able to put into effect some effective policies to partly eliminate this intense issue and maintain the happiness of their people.

If you want to make an actual change and a difference in society, then some measures should be taken that assist the population living beneath the poverty line. The main two reasons for poverty in India are illiteracy and unemployment. Only with appropriate education and monetary aid can this hassle be solved. In India, education and population control is the strongest weapon against poverty. The best way to eradicate poverty is through educating the masses.

Moreover, actions taken by the government can help in eradicating the situation of poverty in India to a greater extent. Some of the options available are—

Increasing the variety of jobs available in India

The employees who lack literacy should receive advanced schooling.

The public distribution system needs to carry out its responsibilities adequately.

The underprivileged should receive free food and water.

Controlling population growth is necessary and also introducing birth control promotion plans is important.

Farmers should have access to appropriate agricultural resources. They can also improve their profit with this technique. They won't migrate to metropolitan regions looking for food as a result.

Poverty is a major problem of the country and it must be addressed on an urgent basis through the implementation of powerful measures. In addition, the eradication of poverty has turned out to be important for the sustainable and inclusive boom of people, society and the economy.

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Poverty In India Essay | Poverty In India Essay for Students and Children

February 13, 2024 by Prasanna

Poverty In India Essay: Poverty In India Essay aims to educate students about the plight of the poor and underprivileged. In India, the wealth is distributed in a disproportionate manner. Explore how this factor and others affect the poverty rates in India through this essay. Furthermore, discover the various means to eliminate poverty from the society.

To write an engaging essay on poverty in India or any other topic, students have to follow certain rules and guidelines. These will also help students to fetch more marks in their exams. So, please consider adopting the following tips and tricks to an engaging essay.

Poverty In India Essay Writing Tips

• Always write an introductory paragraph highlighting the background or history of the topic.
• Include names, dates, and figures wherever possible.
• Avoid the use of jargon.
• Present content in easy-to-read, digestible chunks.
• Present information in points where necessary.
• End the essay with a concluding paragraph.
• Check for grammatical or factual errors before submission.

Poverty In India Essay – Sample 1 (250+ Words)

Poverty is a situation where an individual lacks the means to purchase basic necessities of life. These can include food, water, clothes, and shelter. Moreover, these individuals may not be able to afford even a single square meal a day. They make do with whatever they can find on the street – such as salvaging old food from the trash, sleeping on park benches or roadsides and wear raggedy old clothes.

Poverty and Its Causes

Poverty is primarily caused by the unequal distribution of wealth in a country. Furthermore, unemployment and an increase in the urban population can drastically increase the rate of the country’s population. To aggravate the condition, the jobs that these individuals work pay woefully low wages. This is because these individuals do not possess the required qualifications or are not employable.

A 2012 survey revealed that an estimated 276 million individuals are under the poverty line in India. The same survey also revealed that more people hovering just above the poverty line. Corruption is one of the biggest factors contributing to poverty followed by illiteracy.

Reducing Poverty – How To Reduce it

One of the most effective ways of reducing poverty, at least for future generations is by providing access to education. This ensures that the individuals are skilled and qualified enough to secure a well-paying job. Furthermore, family planning must also be taken into consideration due to the fact that the rising population contributes to poverty.

In conclusion, poverty is not a problem can be solved overnight, however, implementing these solutions over the course of a decade or two will help to alleviate the problem.

Poverty In India Essay – Sample 2 (350+ Words)

Poverty has been a societal problem since times immemorial. It is a situation where an individual is unable to purchase basic necessities such as food, clothes, and shelter. Moreover, these individuals sustain themselves on a single meal a day since they can’t afford more. They may engage in begging since they cannot earn money any other way. Sometimes, these individuals may scavenge rotten food from a dumpster near a hotel or a restaurant just to satisfy their hunger. They may sleep on the pavement or park benches on clear nights. On rainy days, they may sleep under bridges or any other indoor shelters.

How is Poverty Caused?

There are a lot of socio-economic variables that influence poverty. First and foremost is the unequal distribution of wealth. This is compounded by corruption and the ever-increasing population of the country. The next influential factor that causes poverty is illiteracy and unemployment. These two factors go hand-in-hand because, without proper education, unemployment is sure to follow. Most of the people under the poverty line have no marketable or employable skills required by the industries. In case these individuals do find a job, most of these pay extremely low wages, which is insufficient to support oneself or lead a family.

Effects of Poverty

When individuals are unable to afford basic necessities for life, other undesired consequences follow. For instance, health care becomes impossible to afford. This means the individual is at an increased risk of diseases and infections. Sometimes, these individuals also resort to unfair means to obtain money – such as robbery, murder, assault, and rape.

Solutions to End Poverty

Poverty is not a problem that can be resolved over a week or a year. It requires careful planning from the government to implement relevant policies that cater to the population falling below the poverty line. Another important factor affecting poverty is illiteracy and unemployment.

This issue can be tackled with one stone – i.e, to provide education and financial support. Access to education, especially providing means to pursue higher education increases the employability of individuals. This directly helps to alleviate poverty as the individual can start earning. Therefore, one of the most effective tools to combat poverty is education.

In conclusion, poverty in India may remain for another decade or so. However, there are strategies that help to gradually alleviate the problem.

FAQ’s on Poverty In India

Question 1. What is poverty?

Answer: Poverty is a situation where an individual lacks the means to purchase basic necessities of life such as food, water, clothes and shelter.

Question 2. What are some of the adverse effects of poverty?

Answer: Poverty leads to a miserable quality of life. It can also give rise to anti-social activities such as robbery, murder, assault, and rape.

Question 3. How to combat poverty?

Answer: If we are able to provide access to free education and reduce unemployment, the rate of poverty will be reduced. Moreover, providing free access to basic necessities such as health care and shelter will also help to alleviate poverty.

Question 4. What is the Poverty Line?

Answer: The Below Poverty Line (BPL)  is a benchmark that indicates an economic disadvantage. Moreover, it is used for individuals that are in need of aid and assistance from the government.

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• Poverty in India Essay for Students in English

Essay on Poverty In India

People living in poverty do not have enough money for basic necessities such as food and shelter. An example of poverty is the state a person is in when he is homeless and does not have enough money. The rate of poverty in India is increasing because of the population in the urban areas. Most importantly, crores of peoples are below the poverty line and most of the people are on the borderline of poverty. Poverty in India is seen mainly in the rural areas because of the uneducated and unemployed and increased population. Many people do not afford to get proper foods for their daily life and even they don’t have their own homes, they sleep on the footpath or road, more populations need more food, money, and for staying houses but due to lack of this poverty grows very quickly, thus in addition rich are growing richer and the poor becoming more poorer which becomes difficult to fill the gap. Poverty has many effects like it reduces poor housing, illiteracy, increase the rate of child labour and unemployment, poor hygiene hence these poor people can not afford a balanced diet, nice clothes, well education etc. reason only because they don’t have much money to afford this. Poverty can be controlled by giving them proper education and also providing the proper facilities to the farmers so that those farmers get more profitable and do not migrate to cities in search of employment. Also, the illiterate people should get proper education to make their life better. Family planning is also essential for coming out of poverty. Poverty in our country is from ancient times. Even earlier times the poor people were not given the place that rich people used to get even if they were not allowed to enter religious places. Main causes of poverty are like unemployment, lack of education, poor utilization of resources, corruption and poor government policy.

How You Can Improve or Solve Poverty in India?

Poverty can be solved by improving food security by providing three meals a day and making them healthy and providing houses for those people at low cost and giving them proper education and facilities so that they can earn well and take care of their family and live a peaceful life. Awareness on population so that once the population is under control, the economy of the country will improve and move towards development and decrease in the poverty line. Poverty is becoming a complex problem for the people and for the government. How to overcome this, in India the poverty is high compared to other countries because the growth rate of per capita income per person is very low.

With lack of job opportunities many people move as a rickshaw puller, construction workers, domestic servants etc, with irregular small incomes hence they live in slum areas. Also, lack of land resources has been one of the major causes of poverty in India, even the small farmers of our country lead to poverty because they cultivate but do not get proper money in terms of profit and leads to poverty.

Population of India

The population has been increasing in India at a rapid speed, India’s population in 1991 was around 84.3 crores where was poverty at a high rate but now the current population of our country is around 130 crores whereas the population is almost doubled in last three decades but still not enough done for controlling the poverty in our country. Due to an increase in population, there is more unemployment, hence poverty is just the reflection of unemployment. More capital is required for making industry, giving proper transport facilities and other projects, hence the deficiency of its country is still underdeveloped and causes more poverty. Lack of skilled labor also leads to poverty because less-skilled labor have insufficient industrial education and training. Lack of infrastructure means that transport and communication have not been properly developed so that the farmers are not getting fertilizers for cultivation on time and industries do not get power supply and raw materials on time and thus end products are not marketed properly and not reachable on time. Because of poverty sometimes we don’t get those things for what we actually are. Hence to come out of poverty our government has to be more serious and also the citizens should take equal responsibilities. Remove the poverty from country governments has started many steps, in last 2-3 years we have seen that they become more serious by bringing GST in the action, demonetization so because of GST all the businessman can pay full tax and which will help to develop the country and the poverty ratio can be reduced. Steps of demonetization were taken so that black money can be utilized for the poor people and poverty can be reduced. We can overcome poverty by following all the guidelines of the government and can be free from poverty.

India's Poverty Factors

One of the biggest problems of poverty in India is the country's rapid population growth. As a result, there is a high rate of illiteracy, poor health-care facilities, and a lack of financial resources. Furthermore, the high population growth rate has an impact on individual income, making individual income much lower. By 2026, India's population is predicted to surpass 1.5 billion, making it the world's largest country. However, Economic growth is not rising at the same rate as the rest of the world. This indicates a labor shortage. About 20 million new jobs will be required to accommodate this big population. If such a vast number of people are poor, the number of poor will keep rising.

How Much Research is Important for Students to Write Good Essays?

The students must realize that brainstorming and a mind map of the essay will take them in the direction of their research. With the advent of the internet, the days are numbered for students who rely on a well-tipped encyclopedia from the school library as their only authoritative source for their story. If there is any real problem for our readers today is reducing their resources to a manageable number. At this stage, it is important to:

Make sure the research material is directly related to the essay work

Record detailed sources of information that they will use in their story

Communicate in person by asking questions and challenging their own bias

Identify the main points that will be highlighted in the story

Gather ideas, arguments, and opinions together

Identify the major issue they will discuss in their case.

Once these stages have been completed by the student, the student will be ready to make his points in a logical order and prepare an essay.

Therefore, the topic discussed on this page is poverty and poverty is not a human problem but a national one. Also, it should be addressed immediately with the implementation of effective measures. In addition, the eradication of poverty has been a prerequisite for sustainable and inclusive growth for individuals, communities, the country and the economy.

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Each paragraph should focus on one main idea

The Paragraphs should follow a logical sequence, students should collect similar ideas together to avoid collisions

Paragraphs should be stated consistently, learners should be able to choose which line to reverse or skip.

Transition words and similar phrases, as a result, should instead be used to provide flow and provide a bridge between Paragraphs.

General Structure of an Essay

Introduction: Give the reader the essence of the essay. It sets out the broader argument that the story will make and informs the reader of the author's general opinion and method of questioning.

Body Paragraphs: These are the ‘flesh’ of the essay and outline the point made in the introduction by a point with supporting evidence.

Conclusion: Usually the conclusion will repeat the middle argument while providing a summary of the main reasons supporting the story even before linking everything back to the first question.

FAQs on Poverty in India Essay for Students in English

1. What are the Causes of Poverty in India?

The cause of poverty is very obvious in a country like India. The people in India are very careless about the population growth and due to which there is a lot of hassle and unnecessary elevation in population growth rate. This is automatically leading to poverty as there are fewer resources and more people to be served in each state in India. Various causes affect poverty:

Unemployment.

The intensity of population.

The high rate of inflation.

Lack of skilled labor

2. What are the Types of Poverty?

Although there are only two main types of poverty existing in India we will be learning all of them as mentioned in the following lines. The two main classifications of poverty are relative poverty and absolute poverty and both of them emphasize income and consumption. Sometimes, poverty cannot be blamed or associated with economic problems but also it must be associated with society and politics.

There are six types of poverty which are listed below:

Situational poverty.

Generation poverty.

Absolute poverty.

Relative poverty.

Urban poverty.

Rural poverty.

3. How to Reduce the Poverty Line in India?

India is a country that has been under the radar of poverty for centuries. The people of India are making efforts to take themselves out of the poverty line but there are a lot of hindrances. The lack of resources and limited alternatives have thrown the rural and urban residents below the poverty line making life unhealthy and miserable for them. 

Here are some measures listed below

Provide food, shelter and clothes facilities to poor people.

Encourage them for education either male or female. 

Give employment.

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Students should refer to Vedantu for downloading as these solutions will be filling you with the basic knowledge of writing essays. There are loads of vocabulary words and phrases which will enable the students to write high-class essays. The Vedantu website provides 100% authentic content which will lead to additional accuracy of the student’s essay. Basic concepts of writing an essay are available free of cost on the Vedantu website. Avoid problems and enjoy hassle-free preparation with the help of Vedantu.

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Poverty Essay for Students and Children

500+ words essay on poverty essay.

“Poverty is the worst form of violence”. – Mahatma Gandhi.

How Poverty is Measured?

For measuring poverty United nations have devised two measures of poverty – Absolute & relative poverty.  Absolute poverty is used to measure poverty in developing countries like India. Relative poverty is used to measure poverty in developed countries like the USA. In absolute poverty, a line based on the minimum level of income has been created & is called a poverty line.  If per day income of a family is below this level, then it is poor or below the poverty line. If per day income of a family is above this level, then it is non-poor or above the poverty line. In India, the new poverty line is  Rs 32 in rural areas and Rs 47 in urban areas.

Get the huge list of more than 500 Essay Topics and Ideas

Causes of Poverty

According to the Noble prize winner South African leader, Nelson Mandela – “Poverty is not natural, it is manmade”. The above statement is true as the causes of poverty are generally man-made. There are various causes of poverty but the most important is population. Rising population is putting the burden on the resources & budget of countries. Governments are finding difficult to provide food, shelter & employment to the rising population.

The other causes are- lack of education, war, natural disaster, lack of employment, lack of infrastructure, political instability, etc. For instance- lack of employment opportunities makes a person jobless & he is not able to earn enough to fulfill the basic necessities of his family & becomes poor. Lack of education compels a person for less paying jobs & it makes him poorer. Lack of infrastructure means there are no industries, banks, etc. in a country resulting in lack of employment opportunities. Natural disasters like flood, earthquake also contribute to poverty.

In some countries, especially African countries like Somalia, a long period of civil war has made poverty widespread. This is because all the resources & money is being spent in war instead of public welfare. Countries like India, Pakistan, Bangladesh, etc. are prone to natural disasters like cyclone, etc. These disasters occur every year causing poverty to rise.

Ill Effects of Poverty

Poverty affects the life of a poor family. A poor person is not able to take proper food & nutrition &his capacity to work reduces. Reduced capacity to work further reduces his income, making him poorer. Children from poor family never get proper schooling & proper nutrition. They have to work to support their family & this destroys their childhood. Some of them may also involve in crimes like theft, murder, robbery, etc. A poor person remains uneducated & is forced to live under unhygienic conditions in slums. There are no proper sanitation & drinking water facility in slums & he falls ill often &  his health deteriorates. A poor person generally dies an early death. So, all social evils are related to poverty.

Government Schemes to Remove Poverty

The government of India also took several measures to eradicate poverty from India. Some of them are – creating employment opportunities , controlling population, etc. In India, about 60% of the population is still dependent on agriculture for its livelihood. Government has taken certain measures to promote agriculture in India. The government constructed certain dams & canals in our country to provide easy availability of water for irrigation. Government has also taken steps for the cheap availability of seeds & farming equipment to promote agriculture. Government is also promoting farming of cash crops like cotton, instead of food crops. In cities, the government is promoting industrialization to create more jobs. Government has also opened  ‘Ration shops’. Other measures include providing free & compulsory education for children up to 14 years of age, scholarship to deserving students from a poor background, providing subsidized houses to poor people, etc.

Poverty is a social evil, we can also contribute to control it. For example- we can simply donate old clothes to poor people, we can also sponsor the education of a poor child or we can utilize our free time by teaching poor students. Remember before wasting food, somebody is still sleeping hungry.

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Poverty in India Essay for School Students in English [Easy Words]

January 13, 2021 by Sandeep

Essay on Poverty in India: People who are unable to satisfy basic necessities of life like food, water, shelter and education are considered unprivileged and face poverty. They may not be able to afford even a single square meal for their families. They are deprived of healthy and nutritious food. Population increase, migration to cities and rampant unemployment are some of the reasons for growing poverty in India. Increasing literacy and providing sustainable living conditions for the poor can curtail poverty.

Essay on Poverty in India 500 Words in English

We have provided Poverty in India Essay in English, suitable for class 6, 7, 8, 9 & 10. This essay is useful for UPSC aspirants too!

India is the world’s largest democracy and fastest-growing economy. It is one of the chief developing nations with an international level of influence. Yet, it is still viewed as a poor man’s country. This is because a large population of our country is still living below the poverty line. Even after almost seventy-two years of independence, poverty has plagued our nation. Our Union, as well as State governments, have collaborated with many private and public sector institutions. Together they have been able to roll out successful schemes to keep their citizens satisfied.

They are trying their best to provide us with our daily requirements. Yet this task has not helped remove poverty at all. The situation of poverty in India cannot be solved by judging it by its face value. It is essential to understand the nature of polity in India through a historical context. That way, we would be able to find reforms that can be implemented to curb this social evil.

Origin of Poverty in India

From the earliest kingdoms to the Mughal era, India has always had a rich history. Historians had given the Indian sub-continent the title ‘Golden Bird’. The vast reserves of gold and resources were the major indicators of a prospering economy during that era. Over time, invaders plundered these resources, and the economical health of this golden bird rapidly deteriorated. The most significant damage was done by the colonials. They entered our land as traders but slowly established their monopoly over various regions and services, and the entire sub-continent was then in their control.

Around the 19th and the 20th century, poverty bloomed under the British Raj. Industrial expansion and agricultural exports were increasing day by day. Farming was forced upon every labourer in India even when they were not farmers by profession. Though employment existed in the form of farming, farmers were being underpaid. While Nawabs and Maharajas enjoyed wealth and privileges, most of these workers could not even buy one proper meal a day. By 1943, poverty had reached a point where millions of people died of starvation, disease, and destitution (during the Bengal famine). Sir Antony MacDonnell, a civil servant of British India, quoted in the 1900’s “people died like flies”.

Poverty in Free India

Post-independence, India was divided into two different countries. This caused an inflow of refugees along the western border. This further aggravated the condition of poverty prevailing in the nation, according to B.S. Minhas, an economist, about 65% of the Indian population was living in poverty during the 1950’s. In the 1960’s, a new poverty line was set for the country to be at ₹ 20 a month. The estimated percentage of the population below this line was found to be 44%. The following decades noticed the common man’s frustration about the nation’s poor economic condition.

Slogans like ‘Garibi Hatao’ were being raised, and people were desperate to improve society’s condition. Over the years, many committees redefined the poverty line as per the changing dynamics of the Indian economy. At present, as per the World Bank estimates, 5.4% of our population is still suffering from extreme poverty. The figures have improved since the last century. Poverty can only be abolished if the developmental schemes keep evolving according to the country’s needs.

Causes of Poverty in India

Many factors directly contribute to the continual rise of poverty in India. To address and solve them, we need first to identify these factors. Here we have listed down some of these causes:

• Demography of a country plays a vital role in its state of poverty. Rural areas have larger families who owe to a lower per capita income. Ultimately, this results in a low standard of living.
• The increasing urban population has raised the rate of poverty in our country. The migration of rural people to urban areas has diluted out the wages. People eventually get closer to the poverty line.
• One of the major economic causes includes the surge in unemployment. The survey reports of 2015 say that 77% of Indian families lack a regular source of income.
• India is marked for its unequal distribution of assets. These assets and shares are disproportionately distributed among masses having different economic levels. 20 % of our population is reaping the seeds of 80 % of the total wealth.
• Maximum economic value cannot be attained when we have an abundance of the unskilled labour force in our country. Moreover, the caste system has caused marginalization and discrimination of specific portions of our society. Some places still exist where lower caste people are treated as untouchables.
• Besides, corruption is one of the leading causes of poverty. The poor are being neglected, whereas the wealthy can bribe their way to get their jobs done.

Effects of Poverty in India

The effects of poverty are far-fetched. One of its most disturbing effects includes the overall health conditions. Poor people are often malnourished. Children are devoid of a balanced and nutritious diet. Their poor immune system makes them prone to several ailments. Poverty makes them susceptible to anaemia, impaired vision, cardiac issues, etc. This is why 38 out of every 1000 infants die before turning 1.

India’s economy is correlated to its poverty rate. Poverty determines the possibility of rendering adequate amenities to our society’s underprivileged people. A poverty-ridden society is vulnerable to violence and crimes. Poor people indulge in criminal activities to feed themselves. Apart from that, homelessness is a typical outcome of poverty. This risks the safety of women and promotes child labour. It also increases terrorism.

Solutions for Eradicating Poverty in India

The following measures will help us fight against poverty in India:

• Increasing employment opportunities in India is a beneficial option.
• Farmers must be provided with proper agricultural resources. It will help them make a profit and will control their migration to urban regions (in search of jobs).
• Growing population must be checked. Schemes promoting birth control must be implemented.
• The Government must invest in the poverty-stricken states of India.
• Free education and healthcare units must be set up.
• Public Distribution System must be effective in its duty. People below the poverty line must be able to access free food and fresh water.
• Illiterate labourers must be provided with skill-based training so that they can make a better living out of it.

• Poverty Essay

Poverty in India Essay

500+ words poverty in india essay.

Poverty is defined as a condition in which a person or family lacks the financial resources to afford a basic, minimum standard of living. Poor people don’t have adequate income; they can’t afford housing, health facilities and education which are essential for basic survival. So, poverty can be understood simply as a lack of money, or more broadly, barriers to everyday human life. With the help of this poverty essay, students will understand the meaning of poverty, the major causes of poverty and the efforts taken to eliminate poverty in India. So, students must go through this poverty in India essay in depth to get ideas on how to write effective essays and score high marks in exams.

What Causes Poverty?

There are various factors that are responsible for poverty. The major causes are unemployment, illiteracy, increasing population, and lack of proper education and training. As people are not able to find work for themselves, they are not able to earn their livelihood. Due to this, they lack access to basic education, health care, drinking water and sanitation. They are unable to feed their families and children. The other causes of poverty include war, natural disasters, political instability, etc. For example, World War II impacted many countries and they had to suffer from poverty for a long time. It took a lot of effort for such countries to recover their normal state. Similarly, natural disasters affect some areas so badly that poverty and hunger arise.

How is Poverty Measured in India?

The minimum expenditure (or income) required to purchase a basket of goods and services necessary to satisfy basic human needs is called the Poverty Line. Poverty can be measured in terms of the number of people living below this line. It is measured by the State Governments and information is provided by Below Poverty Line (BPL) censuses. Different countries use different measures for measuring poverty but the basic concept remains the same. The definition of the poverty line remains the same, i.e, consumption required for maintaining the minimum standard of living in a country.

Efforts to Eliminate Poverty

Earning income is the first step towards poverty eradication. Poverty can be eliminated by empowering people, and by giving them a good education that will prepare them to have a better career and future. With the help of education, people can get good jobs which allow them to earn a good living. In this way, they will be able to provide their children with a better life. People should be given easy access to transportation, information, communication, technologies, and other public facilities and services to help remove poverty.

The government has also taken several steps to eradicate poverty in India. It has launched various programmes and schemes such as the Five Years Programme, Prime Minister’s Rozgar Yojana, Mahatma Gandhi National Rural Employment Guarantee Act, Swarna Jayanti Shahari Rozgar Yojana, Pradhan Mantri Jan-Dhan Yojana, Deen Dayal Antyodaya Yojana etc. These programmes help to generate wage employment for the poor, unskilled people living in rural areas. The government also has social security programmes to help a few specific groups such as poor women, elder people, and widows. Apart from these government initiatives, citizens of India have to take an active part in eliminating poverty because it can’t be achieved by just a few people. It needs the support of everyone.

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Frequently asked Questions on Poverty in India Essay

How can poverty in india be abolished completely.

Abolishing poverty in India completely can be challenging. Steps should be taken to ensure equality in education so that everyone gets equal opportunities to find better livelihoods. Proper sanitation and water facility 3. Economic security and development

When was the first plan implemented for Poverty abolition?

The fifth five-year plan was first implemented in the year 1974-79 and since then the government has taken several steps and made many reservations to take this plan forward.

What is the relation between Poverty abolition and economic development?

Poverty abolition and economic development go hand in hand with each other and they are interlinked to each other. Eradication of poverty automatically improves the overall economic situation of a country.

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Essay on poverty in india: meaning, types, measures.

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Read this article to learn about the meaning, types and measures to reduce poverty in India.

Essay # Meaning of Poverty:

Poverty as a phenomenon has existed since the beginning of known history. But as centuries rolled by and populations increased, it began to appear on a mass scale.

About 74 percent of India’s population lives in villages. The incidence of poverty is much higher in villages-roughly 39 percent of the rural population.

“Poverty is that condition in which a person either because of inadequate income or unwise expenditures does not maintain a scale of living high enough to provide for his physical and mental efficiency and to enable him and his natural dependents to function usually according to the standards of society of which he is a member”. —Gillin and Gillin

Thus poverty is a condition of extremely lower standard of living. In villages, agriculture is a source of livelihood for 70 percent of the population but agriculture accounts for less than 40 percent of the national income.

One of the reasons for this is the unequal distribution of land, 10 to 20 percent of land holders hold 70 percent of the total land and 50 percent of landholders are marginal farmers with less than one hectare (2.471 acres) of land. Thus any agenda for fighting poverty must address itself to the rural sector.

According to the IRDP definition, approved by the Ministry of rural development (Revised in May 1991) a rural household with an annual income less than Rs. 11,000/- is described as a poor household.

These ‘poor households’ have been further classifies into four groups:

At 1991-92 price level

1. The destitute (with an income of less than Rs. 4,000 per annum).

2. Extremely poor (with an income between Rs. 4,001 and Rs. 6,000 per annum).

3. Very poor (with an income between Rs. 6,001 and Rs. 8,500 per annum).

4. Poor (with an income between Rs. 8,501 and Rs. 11,000 per annum).

According to the National Council of Applied Economic Research (NCAER) survey:

The all India annual income in village India in 1994 was Rs. 4,485.

It was Rs. 3,028 in Orissa.

Rs. 3,157 in West Bengal.

Rs. 3,169 in Bihar.

Rs. 4,185 in U.P.

Rs. 9,166 in Madhya Pradesh.

Rs. 4,229 in Rajasthan.

Rs. 6,380 in Punjab.

Rs. 6,368 in Haryana.

Who is Poor?

1. Landless or marginal farmers cultivating low value products, mostly for family subsistence.

2. Self employed artisans/service rendering people catering to low income customers/markets.

3. Women headed households and groups with large families but limited assets and earning opportunities.

4. People with limited skills and education engaging in seasonal casual work.

5. Socially excluded, depressed groups (for example lower castes), tribal, nomads etc.

6. Victims of the side effects of development of infrastructure and other changes which disintegrated their past sustenance strategies (for example, people affected by breakdown of traditional occupations, collective sustenance systems etc.)

The incidence of poverty is greater in certain communities in India. Scheduled Tribes who reside in the more fragile areas of the country, exhibit higher incidence of poverty. The other social indicators of health, education and related facilities are also very poor in these areas. Even though tribals may have access to land, the poor quality of land contributes to their poverty.

Scheduled castes who are dispersed across the country also show a higher incidence of poverty. Most of the agricultural labourers in the country are landless scheduled castes. Their educational and skills levels are also limited. As a result they show higher incidence of poverty than the general population.

Poverty by Social Groups (%) :

Poverty in the Global Context :

The world community committed itself to achieve eight goals. These are known as the millennium development goals (MDG). Each goal has specific targets and has to be achieved by the year 2015.

The MDGs are to:

1. Eradicate extreme poverty and hunger.

2. Achieve universal primary education.

3. Promote gender equality and empower women.

4. Reduce child mortality.

5. Improve maternal health.

6. Combat HIV/AIDS, malaria and other diseases.

7. Ensure environmental sustainability.

8. Ensure global partnership for development.

The world bank has estimated poverty based on Purchasing Power Parity (PPP). The three P’s takes into account price differences across the countries and allows international comparison of real output and income. The monetary measures of poverty do not capture the deprivation and disabilities that the poor suffer.

The concept of poverty is therefore considered to cover more than the word poor may convey ordinarily. It includes health, education, sanitation and other aspects that have an impact on the living conditions of the people/poor. The international community in the 1990s had committed itself to achieve specific targets on the provision of health facilities, education and eradication of diseases.

Conventions on environmental sustainability were also signed. In October, 2000, the heads of Governments of the United Nations member-countries committed themselves to “eradicate Poverty, promote human dignity and equality and achieve peace, democracy and environmental sustainability”.

As a part of the global agreement the developed countries have agreed to reduce debt and increase aid, trade and technology transfers to the poor countries so that the MDGs could be achieved. In March 2002, In Monterrey in Mexico and in September 2002 in Johannesburg. South Africa, the developed countries agreed to a frame work for assistance to the poor countries in their fight against poverty. It is expected that the rich nations would facilitate greater resource transfer (o the poor countries to achieve the MDGs.’

Essay # Types of Poverty :

Poverty has different meanings for different people. The perception of |30verty differs from person to person.

There are basically two types of poverty.

Absolute poverty is measured against a pre-determined level of living that families should be able to afford. Consumption of food grains, vegetables, milk products and other items that are necessary for a healthy living and access to other non-food items are included in the absolute minimum consumption basket.

These standards are then converted into monetary units and defined as the poverty line. People with consumption expenditure below this threshold are considered poor.

Relative poverty is closely associated with the issues of inequality. The income or consumption of the last quintile of the population would be termed poor even though on absolute poverty definition non of the people in the last quintile group may be poor. Per capita income of a country could also be used to identify the poor.

Persons with per capita incomes of half the country’s per capita income could be termed as poor even though they may be in a position to afford the minimum basket of goods and services that may represent the poverty line. This again reflects concerns of equality.

Relative poverty is thus different from absolute poverty, which looks more at a household’s consumption, or income available for it to meet its minimum consumption needs.

Essay # Measures to Reduce Poverty :

The most common measure of poverty is to count the number of persons below the poverty line and express it as a percentage of total population in the country. This is known as the head-count measure of poverty or head-count ratio.

While this measure is simple and readily understandable its main weakness is that it gives equal weight to all the poor irrespective of their distance from the poverty line. The marginally poor and the very poor are treated equally In the head count ratio.

Amartya Sen has suggested a measure popularly known as Sen’s measure of poverty, which removes the above weakness of the head-count measure. His measure takes into account not only the number of the poor, but the intensity of poverty as well. The intensity of poverty is reflected by a concept known as the poverty gap, which shows how far a poor person falls short from the poverty line.

In other words, it is the difference between the poverty line and the income of the poor. Sen’s index is a weighted sum of poverty gaps of all the poor, the weights being such that less poor persons get lower weight than those who are poorer.

This measure is normalized so that it lies between 0 and 1. This means that the index is on an ascending scale between 0 and 1. A higher value of Sen’s index implies a higher Incidence of poverty. This index can be higher or lower for the same head count measure of poverty depending upon the distribution of the poor between less and more poor.

Anti-Poverty Programmes by Indian Government :

The government has Initiated, sustained and refined many programmes since independence to help the poor attain sell sufficiency. The planning commission has been estimating the incidence poverty using the methodology of Lakadwala Committee (Expert group on estimation of proportion and number of poor). The estimates of incidence of poverty from 1973-74 to 1999-2000 and poverty projection for 2007.

There was a significant decline in proportion of people living below poverty line, from 51.3 percent in 1977-78 to 26.1 percent in 1999-2000. The percentage of rural and urban poverty was 53.1 and 45.2 respectively, in 1977-78, which declined to 27.1 and 23M percent respectively and in 1999-2000. In absolute terms, particularly the number of rural poor declined from 264 million in 1977-78 In 193 million in 1999-2000.

Government has made an array of Interventions in the past for reduction of rural poverty. Among the various programmes launched for poverty alleviation, (since independence) Community Development Programme (CDP), the Small Farmers Development Agency (SFDA), Crash Programme for Rural Employment (CPRE), National Food for Work Programme (NFWP), Minimum Needs Programme (MNP), Antyodaya Programme, Drought Prone Area Programme (DPAP), Integrated Tribal Development Agency (ITDA), Hill Area Development Programme (HADP), Common Area Development Programme (CADP), Integrated Rural Development Programme (IRDP), Swarna Jayanti Gram Swarojgar Yojana (SGSY), Jawahar Gram Samridhi Yojana (JGSY), Employment Assurance Scheme (EAS), Sampoorna Grameen Rozgar Yojana (SGRY), Pradhan Mantri Gramodaya Yojana (PMGY) are important.

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Poverty in India: Real-Life Consequences & Sustainable Solutions

Over the last several decades, India has become one of the fastest growing economies in the world. But even with this impressive progress, poverty in India continues to be an enormous problem. A small percentage of people in India have benefitted from this growth, while the vast majority still struggle to meet their basic daily needs. This inequity is exacerbated by a long-standing social caste system in India that disproportionately affects women and children.

In this blog post, we’ll explain the complex causes of poverty in India, the consequences it has on so many of its people, and the work Outreach International is doing to help people lift themselves out of poverty, and into a life of prosperity and hope.

Understanding the Causes of Poverty in India

Poverty in India is a result of various overlapping factors , spanning a long history of social and economic issues. The social issues include a caste system that causes inequity among the citizens of India. People who are born into certain socioeconomic groups or ethnicities can find it more difficult than others to access education, healthcare, and employment opportunities. Economic issues include a history of financial pressure from foreign countries which makes the economy of India sensitive to external markets which are beyond its control.

Outreach Project: Sumita accessed an Usha School Program sewing machine from Outreach’s Program Partner, Outreach India, in Feb, 2023.

Statistics and Facts

• The September 2023 Global Poverty Update by the World Bank revealed that at the $3.65 poverty line, India accounts for 40% of the global poverty rate of 24.1%. ( The World Bank )
• Over a third of all people living in poverty in the world live in South Asia, which amounts to roughly 389 million people. ( The World Bank )
• In South Asia, the rate of extreme poverty, measured by the international poverty line of $2.15, increased by 1.9 percentage points to 10.5%. India accounts for almost 70% of this global change in extreme poverty. ( The World Bank )
• Between 2012 and 2021, 40% of the wealth created in India has been captured by just the wealthiest 1% of the population. ( BBC )

Factors Contributing to Poverty in India

The complex causes of poverty in India lead to equally complex factors that perpetuate the problem. These include:

Limited Access to Education

Despite making strides in improving literacy rates in general, access to adequate education remains out of reach for many groups in India, especially for those who live in remote areas.

Unemployment and Underemployment

The uneven distribution of economic growth creates limited job opportunities in many geographic areas, especially among young people who are actively seeking employment.

Inadequate Healthcare Infrastructure

The healthcare that the government provides for people who live in poverty in India is inadequate in many geographic areas. Serious health issues, often related to childbirth, can go undertreated, leading to overwhelming debt and feelings of hopelessness.

Social Inequality

Discrimination based on social caste, gender, and ethnicity make it harder for marginalized groups to experience basic socio-economic advancement. This creates a cycle of poverty that passes these issues on to the next generation.

Outreach Project: A new 4G cell tower benefits Sumita and everyone in Khambesu Village.

Historical, Economic, and Social Factors of Poverty in India

India has dealt with a long history of colonization that led to the export of wealth and resources for generations. Although this issue is a part of India’s past, the legacy of uneven trade continues to put financial pressure on India’s poorest citizens. Also, like many economies of the world, social disparity makes it almost impossible for people who live in poverty to climb out of it alone.

The Cost of Poverty in India

The consequences of poverty in India are profound and far-reaching. These include:

Unequal Distribution of Wealth and Resources

The concentration of wealth among a small percentage of the population of India limits access to essential resources and opportunities for the majority of its citizens. According to the Harvard Business Review , the wealthiest 10% of people in India hold 77% of the nation’s wealth. It also states that as of 2023, there were 119 billionaires in India, whose wealth continues to grow at disproportionate rates.

Barriers to Receiving Healthcare

The social healthcare system in India ranks very low among other countries. Expert care and the most advanced treatments remain expensive, and so only those who can afford it have access to it. Those who live in poverty sometimes have to make the choice between health or debt. This can be especially difficult when it comes to the health of their children. This lack of access to quality healthcare is evident in the relatively high infant mortality rates .

Outreach International’s Impact in India: Community-Led Solutions to Change this Reality

It can be nearly impossible for people who live in poverty to solve their issues alone. Outreach International works tirelessly to empower people to help themselves. Our partners at Outreach India bring community groups together to learn to identify their unique poverty-related issues, and then mobilize to solve them.

Many people who live in remote areas in India must deal with a lack of adequate infrastructure. This means that there may be no central power grid, or regional sewage and water treatment system. People who live under these conditions must spend much time and effort fulfilling their basic daily needs. But with the help of Outreach facilitators, solutions can be found.

Solar Water Systems

Until 2010, the citizens of Nandibadi had to walk a kilometer each day to collect water from a river. That year, they had a single spout well installed, which was considered a significant improvement at the time. Even then, however, people had to wait in line and take turns using the hand pump from what was their only water source. With the help of Outreach facilitators, they had a solar-powered water well and storage system installed. This improvement not only made life easier, but it freed up large amounts of time for people to spend making progress in other areas of their lives. ( Read about the Nandibadi Solar Water System )

Solar Street Lights

In Lelibadi, people stayed home after dark because of fear of predatory animals and the possibility of crime. There were no streetlights or electric grid to power them. The community-based organization mobilized to have streetlights installed, each powered by an individual solar panel. Now, the nights are brighter, and the community can gather together, socialize, and travel safely. ( Read about the Lelibadi Solar Street Lights )

Safe Sanitation

Safe sanitation is a crucial factor in the health and wellbeing of a community. Illness from contaminated drinking water and unpleasant surroundings due to a lack of a sanitation system in a community would make life difficult for anyone. Community leaders in Kurumpeta successfully managed a latrine construction project that solved their sanitation issues. ( Read about Solving the Sanitation Crisis )

Disability Inclusion

In Kunjibadi Village, Naika lost his leg in a road accident in 2016. This left him and his wife dependent on her income alone, which placed them well below the poverty line. With help from Outreach India, Naika learned that he was eligible for disability benefits. He prepared his documentation, visited the government offices, and now receives benefits that cover basic daily needs for the family. Naika and his wife feel empowered, and able to look to the future with hope. ( Read about Disability Inclusion in Community-Led Development )

Help Outreach Break the Cycle of Poverty in india

Usha will finish school soon and hopes to work for the government so she can help people.

How to Help

Poverty in India is a multifaceted and pervasive issue that affects millions of people. By understanding its root causes, addressing its consequences, and supporting initiatives that promote socio-economic empowerment, we can all help India find truly equitable prosperity.

Make your donation to support our life-saving work today.

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Essay on Poverty in India

Poverty is the inability to secure the minimum human needs of food, clothing, housing, education, and health. When a person is unable to fulfil these basic needs, it leads to pain and distress.

Even after 74 years of Independence, India is still struggling with the problem of poverty. After going through this ‘ Essay on Poverty in India’ you will learn about the Features of Poverty in India, the Causes of Poverty in India, and Anti-poverty measures taken by the government of India to reduce the poverty in India.

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Features of Poverty in India

Variations:  In the mid-seventies, the poverty ratio (which was more than 50%) got reduced to 22% by the end.

Trend:  There has been a secular decline in the poverty ratio. Because of the increase in population, the number of poor people remained stable for a long period of time.

Interstate variations:  More than 90% of India’s poor are living in Bihar, Odisha, Maharashtra, Tamil Nadu, Madhya Pradesh, Andhra Pradesh, West Bengal, and Uttar Pradesh. Gujarat, Kerala, Haryana, Goa, and Punjab have a low poverty ratio.

Vulnerable groups:  Among the economic groups, the most vulnerable groups are the rural agricultural labour households and the urban casual labour households. On the other hand, among the social groups, the most vulnerable groups are scheduled castes and scheduled tribes.

Inequality of income within a family:  Women, female infants, and elder people suffer more than other members of the family. They are the poorest of the poor.

Rural and urban poverty:  Nearly 75% of poor people live in rural areas. Many poor people from rural areas migrate to urban areas in search of jobs. However, the industrial and service sectors cannot provide sufficient jobs to these poor people.

Causes of Poverty in India

Inequality in the distribution of income and wealth:  During the plan periods, the national income of India has been increasing, but it has not been distributed properly among the different sections of people. The majority of the income of the economy has been enjoyed by the rich. These inequalities in the distribution of wealth and income have worsened the problem of poverty in India.

Underdevelopment of an economy:  Physical and natural resources are underutilized because of a lack of technology, capital, and entrepreneurial ability. Therefore, the productive capacity and gross domestic product of the economy are low. Primitive technology of production occurs in the agricultural sector. They lack irrigation facilities, fertilizers, and a high-yielding variety of seeds. This backwardness in agriculture has given rise to rural poverty.

Price inflation:  Upward trends in the consumer price index during the plan periods led to a fall in the real income of fixed and low-income earners. It decreases purchasing power and hence a lower standard of living and a higher incidence of poverty.

High rate of population growth:  Because of the increase in population, the dependency burden has increased. Hence, the provision for their minimum needs becomes a crucial problem. This high growth rate of the population also signifies lesser availability of health facilities and other amenities and therefore a lower standard of living.

Illiteracy:  Because of a lack of literacy, Indian farmers fail to learn new methods of cultivation, and adopt new tools and implements. Also, the village moneylenders succeed in cheating them more easily. On the other hand, urban people are employed as unskilled workers and receive very low wages in return. They mostly live in slums and they lead miserable lives.

Social causes:  Many social factors such as the caste system, religious faith and beliefs, and joint family system have hindered the process of economic growth.

Political causes:  The policies of the colonial government have ruined traditional handicrafts and discouraged the development of textile industries. Even after Independence , the government failed to protect the interest of the poor.

Anti-Poverty Measures in India

The anti-poverty strategy of the government is based on the promotion of economic growth and targeted anti-poverty programs.

National Rural Employment Guarantee Act (NREGA), September 2005

• 100 days assured employment every year to every household in 200 districts; will be extended to 600 districts later.
• One-third of jobs are reserved for women.
• The Central Government will establish National Employment Guarantee Funds.

National Food for Work Programme (NFWP), 2004

• Launched in 150 most backward districts.
• Open to all rural poor who are in need of wage employment and manual skilled labour.
• 100% centrally sponsored scheme and food grains free of cost. Pradhan Mantri Gramodaya Yojana (PMGY), 2000
• Additional central assistance to states for basic services.

Swarnajayanti Gram Swarozgar Yojana (SGSY), 1999

• To assist poor families above the poverty line by organizing them into self-help groups through a mix of bank credit and government subsidy.

Rural Employment Generation Programme (REGP), 1995

• To create self-employment opportunities in rural areas and small towns.
• To create 25 lakh jobs for the program under the Tenth Five-Year Plan.

Prime Minister Rozgar Yojana (PMRY), 1993

• To create self-employment opportunities for educated unemployed youth in rural areas and small towns.
• To help set up small businesses and industries

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Essay on Poverty

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Essay on Poverty | UPSC in 1000+ Words

This essay provides an in-depth analysis of the issue of poverty in India. The essay is divided into several sections, each focusing on different aspects of poverty in India.

The first section examines the causes of poverty in India, including lack of access to education, healthcare, and job opportunities. The second section discusses the impact of poverty on various aspects of society, such as health, education, and gender inequality. The third section of the essay focuses on government initiatives aimed at addressing poverty in India. It highlights various poverty alleviation programs and schemes such as MGNREGA, PMAY, and NFSA.

The fourth section examines the impact of these initiatives on poverty reduction in India, highlighting the success stories and challenges faced. The final section discusses the challenges that persist in addressing poverty in India, such as corruption, limited resources, inadequate implementation, and lack of political will.

Overall, the essay provides a comprehensive understanding of poverty in India, the government’s efforts to alleviate it, and the challenges that remain in the fight against poverty.

Poverty is one of the most pressing and pervasive issues facing the world today. It is a multifaceted and complex problem that affects millions of people worldwide, including India. Poverty is defined as a lack of access to basic human needs, such as food, shelter, clothing, and healthcare. It is often accompanied by social exclusion, low educational attainment, and limited job opportunities.

The Extent of Poverty in India

India is a developing country with a population of over 1.3 billion people, and poverty is a significant challenge facing the nation. According to the World Bank, around 60% of India’s population lives on less than $3.20 a day, making it one of the world’s poorest countries. Poverty is particularly acute in rural areas, where almost 80% of the country’s poor live.

Causes of Poverty

Poverty in India is caused by a combination of factors, including:

Lack of access to education: A lack of education is a significant contributor to poverty in India. Without education, individuals lack the necessary skills and knowledge to obtain well-paying jobs or start businesses.

Limited job opportunities: Job opportunities in India are limited, particularly in rural areas. This limits individuals’ ability to earn a decent income and leads to high levels of unemployment.

Income inequality: Income inequality is a significant contributor to poverty in India. Wealth is concentrated in the hands of a small number of individuals, while the majority of the population struggles to make ends meet.

Gender inequality: Gender inequality is a significant contributor to poverty in India. Women face discrimination in many areas of life, including education, employment, and healthcare, which limits their ability to earn a decent income and improve their living standards.

Poor healthcare: Poor healthcare is a significant contributor to poverty in India. Without access to quality healthcare, individuals are more likely to fall ill and suffer from chronic diseases, which can limit their ability to work and earn a decent income.

Lack of access to basic infrastructure: A lack of access to basic infrastructure, such as electricity, water, and sanitation, is a significant contributor to poverty in India. Without these essential services, individuals are less productive, and their quality of life is reduced.

Government Initiatives to Address Poverty

The Indian government has implemented several initiatives to address poverty, including:

• National Rural Employment Guarantee Act (NREGA): The National Rural Employment Guarantee Act (NREGA) guarantees 100 days of wage employment per year to every rural household in India. This initiative has helped to provide job opportunities to millions of individuals in rural areas and has reduced poverty.
• Pradhan Mantri Jan Dhan Yojana (PMJDY): The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a government initiative aimed at providing access to financial services to all households in India. This initiative has helped to provide financial assistance to millions of individuals and has reduced poverty.
• Swachh Bharat Abhiyan: The Swachh Bharat Abhiyan is a government initiative aimed at improving the cleanliness and sanitation of India’s cities and rural areas. This initiative has helped to improve the quality of life of millions of individuals and has reduced poverty.
• National Health Mission (NHM): The National Health Mission (NHM) is a government initiative aimed at providing affordable and accessible healthcare to all individuals in India. This initiative has helped to improve the health and well-being of millions of individuals and has reduced poverty.
• Pradhan Mantri Fasal Bima Yojana (PMFBY): The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a government initiative aimed at providing crop insurance to farmers in India. This initiative has helped to improve the financial stability of farmers and has reduced poverty in rural areas.

Challenges in Addressing Poverty

Despite the government’s efforts to address poverty, several challenges persist, including:

• Corruption: Corruption is a significant challenge facing India and undermines the effectiveness of government initiatives aimed at addressing poverty. Corruption reduces the effectiveness of poverty alleviation programs by diverting funds away from their intended purpose.
• Limited resources: India is a developing country with limited resources, and addressing poverty requires significant investments in infrastructure, education, healthcare, and job creation. Limited resources can constrain the government’s ability to address poverty effectively.
• Inadequate implementation: The success of government initiatives to address poverty is heavily dependent on their effective implementation. Inadequate implementation can limit the effectiveness of poverty alleviation programs and prevent them from reaching their intended beneficiaries.
• Lack of political will: Addressing poverty requires sustained political will and commitment from government officials. Without this commitment, poverty alleviation programs may be underfunded or abandoned altogether.

Poverty is a significant challenge facing India, and addressing it requires a sustained and comprehensive effort. The government has implemented several initiatives aimed at addressing poverty, including job creation, financial assistance, improved healthcare, and sanitation. However, several challenges persist, including corruption, limited resources, inadequate implementation, and a lack of political will.

Addressing these challenges requires sustained political will and a commitment to addressing poverty at all levels of government. Only then can India achieve its goal of reducing poverty and improving the quality of life for all its citizens.

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Poverty Essay in English For Students & Children in 1000 Words

In this article, you will read a poverty essay for students and children in 1000 words. This includes meaning, situation in India, causes, effects, reducing ideas, and 10 lines about poverty.

Table of Contents

Poverty Essay in English (1000 Words)

Many reasons are there for this huge amount of poverty in India, but in short, the population explosion, the increase in prices, the debt trap, lower agricultural productivity, and the lack of proper government development are the sole reasons for it. 

What is Poverty?

Poverty is the condition of being extremely poor for a human being. In this condition, the individual starts to lack the basic important things in their life: a roof over their heads, necessary food, medicine, clothes, etc., to continue their life. Several reasons for the cause of poverty are possible. 

An increase in the literacy rate and providing sustainable living conditions for the poor are some of the ways in which poverty can be curtailed to some extent. 

Poverty Situation in India

Central and state governments have successfully collaborated with many of the private and public sector organisations to deal with this situation. Their main agenda is to eradicate poverty in India completely. 

Cause of Poverty in India

Poverty is a dreadful problem in human life. Poverty is just like that of an enslaved person who cannot do the things he wants. Poverty has many faces, which keep on changing according to place, time, and person. 

The Colonials are solely responsible for the major and significant damage done to this country. They entered as traders and slowly started to occupy a monopoly on various sectors. 

Effects of Poverty in India

As a result, their immune systems are merely affected, making them prone to several ailments. It makes them susceptible to anaemia, cardiac issues, poor vision, etc. 

How to Reduce Poverty in India?

Access to education can promote higher education, and higher education can increase the employability of such individuals. In this way, poverty can be elevated as the individual starts earning. Education is the most effective way to combat poverty in India. 

10 Lines on Poverty Essay in Hindi

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Essay on Poverty and Unemployment in India

Students are often asked to write an essay on Poverty and Unemployment in India in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

Let’s take a look…

100 Words Essay on Poverty and Unemployment in India

Introduction.

India, a country with a rich culture and history, faces significant challenges. Two of the most critical are poverty and unemployment.

Poverty in India

Unemployment in india.

Unemployment is another major issue. Many individuals, particularly the youth, are unable to find jobs, leading to economic instability.

Connection between Poverty and Unemployment

Poverty and unemployment in India are interconnected. Unemployment leads to poverty, and poverty, in turn, hampers the ability to find or create jobs.

250 Words Essay on Poverty and Unemployment in India

India, a country with a rich cultural heritage and diverse economy, faces significant challenges in poverty and unemployment. These two issues are intertwined, each feeding into the other, creating a vicious cycle that is difficult to break.

Poverty in India is a multifaceted issue. Despite India’s impressive economic growth, a significant portion of the population still lives below the poverty line. The World Bank reports that 22% of India’s population lives below the international poverty line of $1.90 per day. The poor lack access to basic needs such as food, shelter, and healthcare, which hampers their ability to break out of the poverty cycle.

Unemployment is another critical issue plaguing India. The Centre for Monitoring Indian Economy (CMIE) reported an unemployment rate of 7.11% in December 2020. The lack of job opportunities, coupled with a rapidly growing population, exacerbates the issue. The absence of stable income sources pushes families into poverty, thereby increasing the poverty rate.

The Interconnection

Poverty and unemployment are intrinsically linked. Unemployment leads to a lack of income, pushing people into poverty. Conversely, poverty can lead to unemployment as those in poverty often lack the resources to gain the necessary skills or education for employment.

Addressing poverty and unemployment in India requires a multifaceted approach. This includes improving access to education, creating more job opportunities, and implementing social safety nets for the most vulnerable. Only through a comprehensive strategy can India hope to break the cycle of poverty and unemployment.

500 Words Essay on Poverty and Unemployment in India

Despite the economic growth India has witnessed over the past few decades, poverty remains a pervasive issue. According to the World Bank, around 22% of India’s population lives below the poverty line. The reasons for such extensive poverty are manifold.

The country’s vast population exacerbates its poverty problem. With limited resources and high population density, it becomes challenging to provide adequate facilities to everyone. Furthermore, the unequal distribution of wealth is a significant contributor. The rich continue to amass wealth, while the poor struggle to meet their basic needs.

India’s rural areas bear the brunt of poverty. Lack of infrastructure, inadequate access to education and healthcare, and limited job opportunities contribute to rural poverty. The agriculture sector, which employs a significant portion of the rural population, is often unstable due to unpredictable weather patterns and lack of modern technology, leading to financial instability.

The education system plays a role in the unemployment issue. Despite having a large number of graduates every year, many are not employable due to a gap in skills and industry requirements. The rapid advancement in technology also threatens job security, as automation may render many traditional jobs obsolete.

Combating Poverty and Unemployment

Investing in rural infrastructure can alleviate rural poverty. Providing access to quality healthcare, education, and creating job opportunities in rural areas can improve living conditions and reduce poverty.

Social security schemes can offer a safety net for the economically vulnerable population. Direct cash transfers, food security schemes, and pension schemes for the elderly and the disabled can provide immediate relief to those living in poverty.

India’s journey towards becoming a developed nation requires addressing its poverty and unemployment issues. With targeted policies, investments in education and infrastructure, and social security schemes, India can hope to alleviate these problems. The road is long and challenging, but with concerted efforts, a poverty and unemployment-free India is an achievable goal.

If you’re looking for more, here are essays on other interesting topics:

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Introduction: Analysing Poverty in India

• Published: April 2011
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Poverty in India has proven to be inflexible ever since the country gained its independence more than fifty years ago, prompting the question of what the role of the state or public policy is in reducing poverty in India. This introductory chapter examines the central role of politics in helping to reduce poverty levels in India, as well as the theoretical background of an analysis on poverty. This includes the regime type, which is considered as the ultimate unit of analysis. The chapter discusses class politics, public policy, and caste dominance, and provides a working definition of ‘poverty’. In the latter portion of the chapter, there is a discussion on the state politics and empirical evidence of the poverty levels in two Indian states, Karnataka and Tamil Nadu. The chapter ends with a discussion of the research questions, theoretical implications, and original contribution of the book.

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Poverty in India: Reasons, Responses, Solutions

From Current Affairs Notes for UPSC » Editorials & In-depths » This topic

Note: This article is dynamic i.e., updates are automatically shown from recent current affairs at the bottom of the article.

This topic of “Poverty in India: Reasons, Responses, Solutions” is important from the perspective of the UPSC IAS Examination , which falls under General Studies Portion.

What is Poverty?

• Prior to the 1990s when India was a closed economy, the public distribution system provided necessary resources to all the citizens. However, due to the financial constraints and policy changes after the commencement of Globalisation in India, the government provided necessary resources to the target population i.e., those who deserve governmental assistance.
• This lead to the Government’s adoption of the Targeted Public Distribution System. That is, the Government provided subsidised food to those who come under Below Poverty Line.
• It is difficult to give the exact definition of poverty as it has numerous causes and characteristics. It differs from nation-nation, urban-rural, etc. in other words, the definitions of poverty are based on perspectives.
• However, the general idea is that when an individual has lesser accessibility and affordability to certain essentials like food, clothes, a place to live, healthcare, education, etc., then he is said to be living in poverty.
• The UN and the World Bank calculate poverty through Purchasing Power Parity and nominal relative basis.
• Therefore the poverty estimation differs during varying perceptions.

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How was poverty estimated in India?

Estimation of poverty in british india:.

• In India, the first-ever Poverty estimation was done by Dadabhai Naoroji in 1901 which was published in his book “Poverty and Un-British Rule in India”
• The National Planning Committee of 1936 has estimated poverty in India during the Colonial rule. It calculated poverty linking nutrition, clothing, and housing. This method was used in Independent India also. The poverty estimation by the National Planning Committee showed a grim picture of British India’s Economy

Estimation of poverty in Independent India:

• A working group was set up in 1962 to estimate the poverty line of the country.
• This estimation was based on the minimum calories required to survive and the cost estimates of the minimum calories in Rural India. According to this, the average poverty line is Rs.20 per month. Based on 1960-61 prices.
• Alagh Committee: Until 1979, poverty was calculated based on the income of the citizens. In 1979, based on the recommendation by a committee headed by Y K Alagh, poverty was estimated based on the calories consumed by the population. According to the committee, poverty estimation differs in rural and urban areas. In the rural area, if a resident consumes less than 2400 calories per day, then he/ she belongs BPL population. In an urban area, if a resident consumes less than 2100 calories per day then he/she suffers from poverty. This is an assumption that the urban population needs lesser calories as they are not involved in physical works like that of the rural population. The Alagh committee was the first in India to define the poverty line.
• Lakdawala Formula: This was proposed by Lakdawala Committee that was headed by D.T.Lakdawala. This is also based on household per capita expenditure. Lakdawala committee used the same method used by the Alagh committee. However, it included certain criteria that were missing in the latter. Health and education were considered during the estimation. This committee used CPI-IL (Consumer price index for Industrial Labourers) and CPI-AL (Consumer price index for Agricultural labourers to determine the poverty line. In this method, the average of the minimum necessary per capita household expenditure is calculated to estimate the poor. The obtained value is the base for the poverty line and anyone who lives in a household with per capita expenditure lesser than the obtained average belongs to the BPL. Through this method, it was estimated that 36% of the population were BPL in 2004-2005 and 22% of the population under BPL in 2011. Poverty in India was estimated using this method until 2011.
• Suresh Tendulkar Committee: This committee was set up by the Planning commission in 2005. The methods recommended by this committee are used in the current times. It urged the shift from a calorie-based model and inclusion of monthly expenditure on education, health, electricity, and transport. It introduced the new term “Poverty Line Basket” to determine and estimate poverty. It called for the uniformity of the poverty line basket for both urban and rural areas. If a person does not have access to any of the goods mentioned under the poverty basket then he/she is suffering from poverty. This method uses the cost of living as the basis for identifying poverty. However, the resulted estimation was very low and resulting in public outcry. This lead to the formation of the Rangarajan Committee.
• Rangarajan Committee: Formed in the year 2012, this committee was chaired by Rangarajan. This too adopted calorie-based calculation of the poverty level. This had limitations as it calculated only the absolute minimum necessities. This did not include comfortable living standards as a necessity.
• Current status of poverty line estimation: The above cases show the complexity and difficulty in the determination of the poverty line. Currently, the Indian government still hasn’t found a solid solution to estimate the poverty level of the country. The task was given a 14 member task force headed by NITI Aayog vice-chairman, Aravind Panagaria. They too have failed and have recommended setting up of a new specialised panel to debate the issue.

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What are the causes of poverty (Indian perspective)?

• Colonial exploitation: India under the colonial hegemony was forced to de-industrialize resulting in increased raw material production and a decrease in the export of value-added goods like traditional handicrafts and textiles. The natives were forced to buy British goods, thus discouraging them from manufacturing indigenously. This led to massive unemployment. The droughts, diseases, and others increased the plight of the Indians during that time.
• Increase in the population : the rapid increase in the population due to a decrease in the mortality rate and an increase in the birth rate can be an asset for the Indian economy. However, in the present scenario, this is turning out to be a liability due to massive unemployment and an increase in the dependence on those working populations. The massive population must be converted to human capital to promote the growth of the economy.
• Natural Calamities : In India, the maximum of the population who belong to BPL is from states of Bihar, Jharkhand, Odisha, Madhya Pradesh, Chattisgarh, Uttar Pradesh, and Uttarakhand. The reason behind this is that these states are prone to natural disasters and also most of the population in these states are from SC/STs thus making them unrepresented. The natural calamities in these states hamper the agricultural progress and economic development of these states.
• The rise of unorganised sectors : many sectors in the Indian economy are unorganised. This brings in the problem of labour exploitation. The increase in demand for work also causes job insecurities.
• Failing Agricultural sector : the agricultural sector is one of the most vulnerable sectors of the Indian economy. Farmer suicides and protests are on the rise due to the increasing debt and decrease in production. This, in the long run, would result in them suffering from poverty. This sector employs a maximum of the Indian population but provides little profit.
• Lack of investment : The investment provides more job opportunities. For this, the Indian economy must be favourable for foreign investment. However, some parts of India remain unfavourable due to corruption , political instability, militancy etc.
• Social factors : Illiteracy, unrepresented minorities, social norms, caste systems are still prevalent in certain parts of India.
• Lack of skilled labour : the population can be an asset to the economy if it is utilized efficiently. This can be done through human capitalization. Measures to improve the literacy of the population are very slow. Some, due to the lack of sufficient skills are not accepted in the workforce. This results in unemployment and poverty.
• Corruption: Many measures have been taken by the government to eliminate poverty. However, there is still a lack of political will. The corruption by those in power also contributes to poverty.
• Inefficient use of resources : India is a country that has abundant natural resources which, if utilized efficiently, without wastage, can be turned into an asset.
• Lack of entrepreneurship : There are many activities in India that can be of asset to the economy. For example, some tribes have rich art and culture which can be utilized for the tribes’ growth and development through proper entrepreneurship. However, due to a lack of leadership and entrepreneurial skills, they go to waste. The tribes remain one of the most vulnerable sections of Indian society.
• Lack of infrastructure : Many parts of India still remain isolated despite the rapid economic growth. There are several villages in India that still don’t have access to basic commodities like electricity, thus resulting in poor standards of living. They don’t even have proper roads or railways. Their contribution to the economy goes to waste due to inaccessibility.
• Recession induced by coronavirus pandemic .

What is the current status?

• The 2019 Global Multidimensional Poverty Index published by the UN Development Program has estimated that multidimensional poverty in India has fallen by 27.5% between 2005-06 and 2015-16. Multidimensional poverty means the estimation of poor not only based on income but also several factors such as poor health, poor working conditions, etc.
• According to World Poverty Clock , close to 44 Indians are escaping from extreme poverty each minute.
• As of 2011, 21.9% of the Indian population belongs below the poverty line.
• The unemployment rate as of April 2021 is 7.1%. This is a huge problem as unemployment is the direct cause of poverty in the country. The recent years saw a rapid increase in infrastructural developments like roads and housing projects for the alleviation of the poor. This might help boost investments in the country increasing job opportunities.
• According to a World Bank working paper, extreme poverty in India dropped to 10.2%  in the  pre-Covid year of 2019  from as much as  22.5% in 2011  .

Covid induced poverty according to Pew report

• The poverty rate in India likely increases to 9.7% in 2020, up sharply from the January 2020 forecast of 4.3%.
• From 2011 to 2019, the number of poor in India was estimated to have decreased to 78 million from 340 million.
• Poor: People with incomes of USD 2 or less a day.
• Increase in India accounts for nearly 60% of the global increase in poverty.
• Record increase in  Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)  participants as proof that the poor were struggling to find work.
• Middle Class: people with incomes of around Rs. 700-1,500 or USD 10-20 per day.
• The middle-income group is likely to have decreased from almost 10 crores to just 6.6 crores.
• The huge majority of India’s population falls into the low-income group.
• Low Income Group: people earning about Rs.150 to 700 per day.
• Rich: Includes the people who earn more than Rs.1,500 a day.
• The lockdown triggered by the pandemic resulted in shut businesses, lost jobs, and falling incomes, plunging the Indian economy into a deep recession.

What are the measures taken by the government to alleviate poverty?

• Swarnajayanti Gram Swarozgar Yojana :
• It was launched on April 1, 1999.
• This program merged Integrated Rural Development Program, Training of Rural Youth for Self Employment (TRYSEM), Development of Women and Children in Rural Areas (DWCRA), Million Wells Scheme (MWS), Supply of Improved Toolkits to Rural Artisans (SITRA) and Ganga Kalyan Yojana.
• Its objective is to alleviate the beneficiaries from BPL.
• It helps promote the self-employment of the rural poor.
• The fund sharing between the Centre and the State is at the ratio of 75:25.
• This scheme aims at working in clusters to provide inclusive and effective aid to the rural poor.
• The rural poor are organized into SHGs to provide training, capacity building and providing assets to generate income.
• This scheme was renamed as National Rural Livelihood Mission in 2011.
• This was finally merged to Deen Dayal Upadhyaya Antyodyaya Yojana to provide skills training for the poor. This scheme also provides subsidies and shelters for the homeless. The vendor markets are developed to promote job in the rural areas.
• Jawahar Gram Samriddhi Yojana:
• This scheme replaced the erstwhile Jawahar Rozgar Scheme.
• It was launched in April 1999 to generate employment in rural areas through infrastructure development.
• Pradhan Mantri Awaas Yojana:
• It has two components: Pradhan Mantri Awaas Yojana (Grameen) and Pradhan Mantri Awaas Yojana (Urban)
• It was launched in 2015.
• It unites schemes like Ujjwala yojana (provides LPG to BPL), access to toilets, water, drinking water facilities and Saubhagya Yojana (electricity).
• Mahatma Gandhi National Rural Employment Guarantee Act,2005:
• Launched on February 2, 2005
• It provides 100 days of guaranteed employment to rural households.
• 1/3 rd of the jobs reserved for women.
• If the jobs are not available for the applicants, and they were without jobs within 15 days, then they will be given unemployment allowance.
• This guarantees employment opportunities to the rural population and accountability of the government.
• Under this, National Food for Work, which was launched in 2004 was subsumed in 2006.
• The National Food for Work provided additional resources and assistance that are absent under Sampoorna Grameen Rozgar Yojana. Under this program, 150 districts were identified as backward by the Planning Commission. They were the beneficiaries of this program. Food security , employment through need-based social, economic, and community assets
• Pradhan Mantri Kaushal Vikas Yojana :
• Launched by the Ministry of Skills Development and Entrepreneurship in 2015.
• It is a scheme aimed at the enhancement of skills based on the demand of the economy.
• This scheme is implemented through Nation Skill Development Corporation (NSBC).
• Training and assessment fees are paid by the government.
• The training provided under this scheme is based on National Skill Qualification Framework and industry-level standards.
• The beneficiaries include college graduates and school/ college dropouts.
• Rythu Bandhu Scheme: This was a scheme implemented in Telangana to provide financial assistance of Rs.4000 per acre per season to all land-owning farmers.
• Pradhan Mantri Kisan Samman Nidhi : This scheme aims to provide financial assistance to provide working capital support to all the landholding farmers. This brings in the idea of universal basic income for the farmers in India. Read more
• Social security schemes
• Atmanirbhar bharat abhiyan
• Production linked incentive scheme
• Garib kalyan rojgar abhiyaan

Way Forward:

• The government must provide transparency and accountability to various organizations that are responsible for the implementation of the Welfare Schemes.
• Infrastructure development and skills development must be made a top priority.
• More govt expenditure in health, nutrition, and education.
• The problem of the inability to determine the poverty line must be resolved to help the target population.
• Direct income transfer to the needy is an immediate solution. Universal Basic Income should also be considered.
• Investment in Agriculture by the government is necessary to decrease rural poverty. Subsidies address only short-term issues. Also, there is a need to develop technologies, with the help of which farmers can practice all-weather agriculture.
• Employment-oriented growth:  create jobs in modern sectors and promote labour-intensive industries.
• Reduce corruption for efficient service delivery.
• Resilience for poor households to withstand major shocks: through holistic, multi-faceted intervention designed to help people lift themselves from extreme poverty by providing them with the tools, skills, and resources required to deal with the challenges that keep them trapped in a state of destitution. In addition to providing assets such as livestock, the government should also provide livelihood and financial skills training to make these assets productive; personal coaching to instill confidence and hope; basic health care for families, and more.

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• > Indian Democracy
• > DEMOCRACY AND POVERTY IN INDIA

Book contents

• Frontmatter
• List of Contributors
• Introduction DEMOCRATIC POLITICS IN INDIA: CONCEPTS, CHALLENGES AND DEBATES
• 1 RECONSTRUCTING DEMOCRATIC CONCERNS IN INDIA
• 2 ARE WE READY FOR DEMOCRACY? A FEW OBSERVATIONS
• 3 DEMOCRACY AND POVERTY IN INDIA
• 4 DEMOCRACY AND FEDERALISM IN INDIA: TWO EPISODES AND A SET OF QUESTIONS
• 5 INDIA'S COALITION FUTURE?
• 6 HOW DEMOCRATIC IS OUR PARLIAMENT? ELITE REPRESENTATION AND FUNCTIONAL EFFICIENCY OF LOK SABHA
• 7 DEMOCRACY'S JANUS FACE: A REVIEW OF ELECTIONS IN POST-INDEPENDENCE INDIA
• 8 THE NATURE OF THE OPPOSITION IN INDIA'S PARLIAMENTARY DEMOCRACY
• 9 RESTYLING DEMOCRACY? MAINSTREAM MEDIA AND PUBLIC SPACE VIS-À-VIS INDIAN TELEVISION
• 10 THE POOR WORKING WOMEN: THE ACHILLES HEEL OF INDIAN DEMOCRACY – A PROFILE OF THE MAIDSERVANT FROM THE BUSTEES OF KOLKATA
• 11 HOW IS DEMOCRACY IN SOUTH ASIA? A COMPARISON OF THE ELITE AND THE MASS ATTITUDES

3 - DEMOCRACY AND POVERTY IN INDIA

Published online by Cambridge University Press:  05 March 2012

The present paper is an attempt to discuss the paradox that is critical to making sense of ‘democratic India’ or democracy in India and lies at the heart of the radical democratic enterprise in the country. Simply stated, the paradox of Indian democracy lies is the continued coexistence of democracy and poverty in India since independence. Or to state it more carefully, the paradox involves the continued existence of electoral democracy with mass participation, along with mass poverty. This chapter attempts to develop an explanatory framework that gives us a sense of the mechanism that makes this paradox possible and allows us to understand the changes over time and differences across the various states in the relationship of democracy with poverty.

The paper includes two parts. In the first part, it specifies the meaning of the two crucial terms – democracy and poverty, and defends the claim that their coexistence is indeed a paradox, that there is something to be surprised about their being together. It sketches a simple model of why we should expect electoral democracy with mass participation to expend its principal energy and resources in reducing mass poverty. It then goes on to suggest that in the case of India, the paradox is deeper than what is thought of, for some of the most common reasons for which democracies do not attend to poverty do not apply in the case of India.

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• DEMOCRACY AND POVERTY IN INDIA
• By Yogendra Yadav , Centre for the Study of Developing Societies, New Delhi.
• Edited by M. Manisha , Sharmila Deb
• Book: Indian Democracy
• Online publication: 05 March 2012
• Chapter DOI: https://doi.org/10.7135/UPO9781843318132.005

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Paragraph on Poverty

Poverty is such an economic condition that makes people live with the scarcity of resources. A few paragraphs with different word limits will make you understand the whole concept easily. Read them right now, and I am sure that they will bring you much interest in reading about it.

Short and Long Paragraphs on Poverty in India in English

Paragraph 1 – 100 words.

‘Poverty’ is an economic condition of a person or the whole family. A person living in poverty becomes unable to meet basic needs. Poor people are depressed and deprived. It affects a person and his social life badly. The poor always remain surrounded by disasters. It makes him vulnerable to many deadly diseases.

It is very common to see poverty in India. It may be a strong reason for India to be a developing nation. Poverty is not a problem for one, two or a few nations of the World. It is a global problem. The eradication of poverty is very necessary.

Paragraph 2 – 120 Words

Poverty is the root cause of most problems in society. Hunger, illness, and death are the primary outcomes of poverty. We can easily see them around us. Poverty puts people away from their fundamental necessities.

Due to poverty, children are unable to get proper education and healthy life. They also become malnourished. Poverty is also a strong reason for increasing the crime rate. Poor people do not get the desired education. The lack of knowledge makes them jobless.

They become forced to wander for their livelihood. The need for money forces them to earn it by the wrong means. This is the definite effect of poverty. Child labor is another crime which is arisen through poverty and is a curse for the society.

Paragraph 3 – 150 Words

Poverty is a source of problems and pain in human life. Due to poverty, people spend their entire life in the absence of essential commodities. A poor is a helpless person who neither can meet his needs nor his family. Poverty always remains a barrier in the path of his happiness.

Poverty is the main reason for the lowering of the Indian economy. Poverty has made most of the population of the Indian economy to live a painful life. A large section of the population in our country is uneducated, starving and forced to survive without clothes and home.

The food, cloth, and house are the basic needs of a human. A poor always lack one, two or all the factor of it. The children of a poor family never get proper education, nutrition, and a happy childhood environment. It leads them to become a criminal or a terrorist.

Paragraph 4 – 200 Words

Poverty is like a prolonged disease for any economy. It slowly eats the capacity and intelligence of the youth of the country. It is a deadly disease but not an incurable one. Yes, we can get rid of poverty by making some physical and structural changes in society.

The population is the greatest factor for increasing poverty. A controlled population will help the economy with growing and fulfilling all the necessities of the people. The government, as well as every individual, should work towards controlling the population of the nation. It is never too late to work for the right cause.

Creating Jobs and employing youth can also be beneficial for reducing the poverty level. A well-educated person will not only get a good income but also create jobs for many other people in society. He can understand the problems of the country and work for the best solution to it.

Agriculture is the backbone of the Indian economy, but the Indian farmers are also the poorest section of the population. We need to focus on the development of agriculture and its practices so that the farmers get the maximum outcome of their hard work. It will work like a boon for the country.

Paragraph 5 – 250 Words

Poverty is not less than a bane for society as well as for the nation itself. Although it has covered every part of the World, the origins of poverty are the same everywhere. Poverty is not a natural phenomenon. It is the result of many factors which make its root stronger.

Among all the causes of poverty, the pressure of the population is the greatest one. We can directly relate the population of an economy to its poverty rate. The rising population creates a problem in providing basic amenities to every individual of the nation. We can’t ignore it.

The increasing population gives rise to the lack of education and then unemployment. Most of these unemployed people are youth. They fight to get an appropriate job but finally land in the zone of poverty. Further, it leads the nation towards heavy corruption and crime due to their frustration.

The economy of a country like India faces inflation most frequently. Inflation brings the rise in the price of products and then the deficiency of adequate funds. The lack of capital is like a barrier to the development of industries and technologies, which makes the economy backward and rest in poverty.

The lack of technical knowledge is another big reason for poverty in a country. The people without technical knowledge are not ready to be an entrepreneur and run towards getting a job. By this, we don’t get proper industrialism in society, and it goes towards poverty much faster.

FAQs: Frequently Asked Questions

Ans. 84 million people or 6.7% of people in India live under the poverty line.

Ans. People who are getting less than 2200 calories in urban areas and 2400 in rural are considered to be poor.

Ans. Chhattisgarh is the poorest state of India.

Ans. Niger is the poorest country in the world.

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Escaping and Falling into Poverty in India Today

Amit thorat.

Jawaharlal Nehru University

Reeve Vanneman

University of Maryland, U.S.A

Sonalde Desai

Amaresh dubey.

The study examines the dynamic nature of movements into and out of poverty over a period when poverty has fallen substantially in India. The analysis identifies people who escaped poverty and those who fell into it over the period 2005 to 2012. The analysis identifies people who escaped poverty and those who fell into it over the period 2005 to 2012. Using panel data from the India Human Development Survey for 2005 and 2012, we find that the risks of marginalized communities such as Dalits and Adivasis of falling into or remaining in poverty were higher than those for more privileged groups. Some, but not all of these higher risks are explained by educational, financial, and social disadvantages of these groups in 2005. Results from a logistic regression show that some factors that help people escape poverty differ from those that push people into it and that the strength of their effects varies.

Introduction

The Indian economy has grown by leaps and bounds over the last two decades of its liberalized journey. The world economic crisis notwithstanding, both rural and urban poverty fell substantially over this time period although some debate remains over the magnitude of this fall. Official estimates show a decline from a high of 37% in 1993–94 to 22% in 2011–12, a decline of 15 percentage points 1 .

Though everyone agrees poverty rates have fallen over time, we are less certain about who are the people who have risen out of poverty most rapidly and what advantages they enjoyed that might have helped explain their upward mobility. Moreover, despite the overall decline in net poverty rates, many others have newly fallen into poverty but have been almost forgotten in academic and policy discourse ( Krishna 2010 ).

Poverty analysis in India has largely depended upon cross sectional data, relying on the ‘thick’ quinquennial and the ‘thin’ annual consumption expenditure surveys by the NSSO. Though highly useful for a continuous monitoring of national progress, these cross-sectional surveys do not allow for examining the dynamics of household outcomes. The lack of national panel data has prevented us from asking what household characteristics increase the odds of exiting or entering poverty? How does occupational diversification affect the risks of poverty? Are historical caste disadvantages reproduced in recent poverty dynamics? The completion of the second wave of the India Human Development Survey () presents a unique opportunity to observe the movements into and out of poverty by Indian households across the country during a rapidly changing economy. We find that traditional caste and religious differences remain a major impediment for escaping poverty and an equally strong risk for falling into poverty. In contrast, educational attainment and a salaried position offer protection against the danger of falling into poverty but somewhat less help in escaping once there. Urban location offers similar protections against falling into poverty but almost no advantage in escaping poverty after holding constant the educational and occupational advantages typical of urban households.

Background and motivation

Contemporary poverty in India has always been underpinned by the age-old divisions of caste and religious differences. Patterns of poverty and underdevelopment show consistent intergroup differences over time, even during phases of growth and development. India’s class differentials have historically mirrored the traditional caste differentials. Brahmins and other forward castes have been the traditional decision makers through their ownership of land and capital, while Dalits (Scheduled Castes) have more often worked as landless labourers. Indigenous tribal groups ( Adivasis ), often set apart geographically and socially from the rest of India, have typically been the poorest of the poor.

Despite aggressive affirmative action policies by the Government of India and despite substantial improvements in incomes among all Indians, poverty continues to be concentrated among these most traditionally disadvantaged groups. A recent report based on the 2004–2005 India Human Development Survey ( Desai et al. 2010 ) found that while Forward Caste Hindus experienced a 12% poverty rate, Dalit poverty was more than two and half times as high (32%) and a crippling 50% of Adivasis were poor. Intermediate castes (OBCs – Other Backward Classes) had, not surprisingly, intermediate levels of poverty (23%). Comparable estimates of poverty ( Thorat & Dubey, 2012 ) based on data from National Sample Survey also show similar inter group differences. While the head count ratio (HCR) for the Dalits and Adivasis were as high as 32% and 30%, they are only 17% for the Forward caste Hindus.

Religious differences in poverty are more complex owing to different levels of urbanization, education, and non-agricultural employment. Nevertheless, 31% of minority Muslims were poor, a rate not much different from Dalits (IHDS, 2005). Other minority religious groups, Jains, Sikhs, and to a lesser extent Christians, have been relatively prosperous; together their 2005 poverty rate was only 12%, about the same as Forward Caste Hindus.

Panel literature and analysis

Poverty analyses in India have depended largely on the cross sectional National Sample Surveys (NSS) consumption expenditure data collected every five years 2 by the Ministry of Statistics and Programme Implementation. Panel data analysis has been less common; what has been available has used mostly selected rural samples from NCAER ( Mehta and Bhide 2003 ) and from ICRISAT, the International Crops Research Institute for the Semi-Arid Tropics ( Singh and Binswanger 1993 ; Gaiha and Imai 2004 ). The last available year from ICRISAT is 2008 and from NCAER, 1998–99. Lacking sufficient panel data, others ( Krishna 2010 , Hattlebakk 2014 ) have developed retrospective methods for inquiring about transitions into and out of poverty.

Social Background

These earlier panel analyses of rural poverty persistence confirmed that the most disadvantaged groups also realized the lowest rates of escape from poverty. The evidence is clearest for Adivasis, while Dalits and especially OBCs occasionally show escape rates more similar to forward castes. For example, Mehta and Bhide (2003) studying 3139 rural households found that while 63% of “Upper Caste” households who were poor in 1970–71 were no longer poor a decade later, only 37% of Dalits and, even fewer, 30%, of Adivasis had managed to escape poverty during that time. Escape rates for OBC households, 43%, fell between these two extremes. Dhamija and Bhide (2013) extended the analysis of the same NCAER data to 1998–99 and also found that both Dalits and Adivasis were less likely to escape poverty, although the coefficient estimating the log odds of escape for Adivasis, −1.18, was over twice that for Dalits, −0.56 (2013: 692).

Krishna (2003) using retrospective accounts for 6,376 Rajasthan households found that while 45% of previously poor Upper Caste households had escaped poverty a generation later, 42% of poor OBC households, 33% of Dalit households, and only 31% of Adivasi households had been able to escape. Using similar methods with 2245 Gujarat households, Krishna et al (2005) found escape rates of 22% for “General” Hindu households, 18%, for Dalits, and 15% for Adivasis. More surprisingly, the lowest rates of escape in Gujarat were found among poor OBC households, only 12% of whom escaped poverty. Hattlebakk (2014) using a similar retrospective method with 754 households in two Orissa districts found similar rates of escape for poor OBCs (50%) and Dalits (58%) but much lower for poor Adivasis (17%). Unfortunately, the sample size of poor forward castes was too small to estimate escape rates.

The analyses most similar to what we report here were calculated by Krishna and Shariff (2011) using income, not expenditure data, from a national panel of 13,593 rural households interviewed in 1993–94 and 2004–05. They found the familiar hierarchy of escapes associated with higher caste status: Dalits and Adivasis (46%), OBCs (53%), and forward castes (60%). Interestingly, in a multivariate state fixed effects regression controlling for other household characteristics, these caste differences proved to be not statistically significant. Their results do not indicate so much a lack of caste differences in escaping poverty but rather that a reasonably comprehensive set of intervening variables can explain much of why caste status is related to escapes from poverty.

There has been less research attention to caste differences in falling into poverty, despite widespread acknowledgement that poverty rates are a product of both escapes and descents. Bhide and Methta (2008) using the NCAER data found evidence for higher rates for Adivasis falling into severe poverty and for Dalits falling into moderate poverty. Dhamija and Bhide (2013) , analyzing the same data in a multivariate model, found only non-significant caste differences after controlling for other household and area characteristics. The retrospective methods in smaller state-specific samples generally find higher descent rates for disadvantaged castes than for forward castes although the differences among the disadvantaged castes varies from one location to another. Krishna and Shariff’s all-India data found large caste differences for falling into poverty with 43% of non-poor Adivasis and Dalits falling into poverty a decade later, 36% of OBCs and 23% of forward castes.

Religious differences have usually been smaller. Mehta and Bhide (2003) found 48% of poor Hindus had escaped poverty compared to 40% of poor Muslims. Krishna and Shariff found only 45% of Muslims escaped poverty between 1994 and 2005, comparable to the low rates for Dalits and Adivasis (46%). And 39% of nonpoor Muslims fell into poverty during this period, only slightly less than for Dalits and Adivasis (43%) and well below the higher caste risk (23%).

Economic and Educational Background

A review of the existing panel data literature on India as well as other countries suggests that in rural areas, households that escaped poverty over time, were those that managed to increase their land holding or to use existing land more intensively either by increasing irrigation or crop diversification, found off-farm work, increased skill or education, acquired more assets, or reduced family size. At the same time those households that fell into poverty were the ones that lost land or operational area, experienced cropping shocks, increased family size, did not accumulate wealth, did not reduce liabilities, had members who fell ill, suffered a natural calamity, belonged to lower caste, were landless, mostly less educated and could not easily change occupation ( Adelman, Subbarao and Vashishtha, 1985 ; Baulch and McCulloch 2002 ; Gaiha 1989 ).

The panel studies reviewed above, while suggestive, have various limitations: all are rural, several are based on small or local samples, and poverty definitions vary widely from one study to another and rarely conform to the standard NSS definition. This study will use a nationally representative panel data of 38,853 households for India, the India Human Development Survey ( Desai et al., 2010 ), fielded in two waves, 2004–05 and 2011–12. This is the only nationally representative panel that has collected data on household incomes and consumption expenditures, and also includes data on many other socio-economic indicators that might protect households from poverty.

We concentrate on the prior characteristics of households that would predispose them to escape from or descend into poverty, particularly the socio-religious profile of these households. We also try to identify the economic and social resources households have to resist poverty: the household’s main source of income, level of education, land ownership, social and financial capital, and household composition. For caste and religion, we first report reduced form differences in exits and entrances and then use lagged logistic regressions to investigate the conditional effects of household characteristics in exposing households to risks of falling into poverty or chances of escaping it. We are also interested in understanding how much of the caste and community disadvantages are explained by these household characteristics.

When considering poverty transitions, we need to take account not only of the levels of income and its determinants, but also the steadiness of that income. Steadiness and high levels are easily conflated because they often (but not always) co-occur. Salaried positions in India usually pay better than wage labour, but their advantage in poverty transitions stems also from the greater steadiness of that income as compared to hourly wages. Households with steady incomes avoid the poverty transitions that come from more volatile income sources. Cross-sectional analyses of poverty that miss the churning of exits from and entrances into poverty also miss the importance of steady incomes for protecting households from poverty.

Household characteristics that are relatively enduring properties should be especially important in protecting against falling into poverty: capital of all types – financial, physical, human, and social – can buffer a household against the risks of falling into poverty during bad years. Agricultural capital might seem to be an exception to that benefit because of the inherent volatility of agricultural production due to weather and climatic conditions. But even in agriculture, landowners are better protected from falling into poverty than are agricultural labourers who are the first to suffer from failed crops. Perhaps, more importantly, irrigation can buffer the consequences of rainfall failures and protect cultivators from falling into poverty.

Bank accounts can also provide protection against the volatility of Indian incomes; they not only can hold savings to smooth consumption spending, they can provide better access to credit. Access to banking continues to expand in India, but at the time of the first IHDS survey only a third of Indian households had an account, making this a potentially important difference for families avoiding falling into poverty. And while access to future borrowing may provide a means for households to maintain their living standards, current debt may also create a risk for falling further behind. The retrospective studies described above frequently identify debts as a common path into household poverty.

Human capital, because it remains with a worker through good times and bad, can act also as insurance against descents into poverty just as physical capital can. A college degree or a secondary school diploma remains a credential workers take with them from position to position.

Finally, social capital, like financial and human capital, can be a household resource that may help protect households from falling into poverty during bad times or help efforts to rise out of poverty after setbacks. Memberships in formal organizations, especially micro-credit societies, can provide specifically economic assistance for upward mobility; and more general informal contacts with local influentials can provide the social safety nets that protect against sudden descents or that extend a hand up when trying to recover from a setback.

Of course, the steadiness of income, the buffer of a stock of capital, or the credential that protects employment is not as much assistance if that income hasn’t been sufficient to prevent poverty in the first place. A steady but poverty level income is poor consolation. For this reason, we expect these predictors of steady income to be more important as protection against falling into poverty than assistance in escaping poverty.

Data Source

IHDS began as a multi-topic panel study of 41,554 households from 33 states and union territories across 1503 villages and 971 urban neighbourhoods. The survey was designed to be nationally representative at its inception. In 2011–12, all of the 2004–5 households as well as any households separating from the root household but residing in the same area were selected for re-interviews.

Comparison of IHDS data with other reputable data sources such as the Census, National Sample Surveys (NSS) and National Family Health Survey (NFHS) shows that the IHDS compares well with these sources on common items ( Desai et al. 2010 ). For example, the NSS estimates poverty rate to be 37 per cent in 2004–5 and 22 percent in 2011–12; IHDS estimates are similar at 38 percent in 2004–5 and 21 percent in 2011–12.

IHDS2 reinterviewed 83 percent of the original IHDS1 households that housed 85 percent of the Indian population -- 92 per cent of households in rural areas and 76 per cent in urban areas. Attrition was lower among larger, rural households, especially those who owned agricultural land. Attrition was also slightly higher for the non-poor, 13 percent, than for the poor, 9 percent. These differences raise the question of a possible selection bias in our results since we can analyse poverty transitions only for households interviewed in both surveys. Appendix Table 2 presents results from a probit analysis of attrition from which we calculated the inverse Mills’ ratio included in all the analyses of poverty transitions.

Appendix Table A2

Probit analysis of attrition between survey waves.

The IHDS panel collected data on household consumption expenditures using an abridged schedule, similar to the one used by the NSS for their Employment Survey. We convert reported consumption of 47 different items (slightly revised to 52 items in 2012) to monthly per capita consumption expenditures. Head count poverty ratios have been calculated using per capita household consumption and the official poverty line (Tendulkar Committee poverty lines 3 ).

These poverty line have been used by the Planning Commission, Government of India for estimating poverty ratios. (2009, see also Himanshu 2010 ). While the Planning Commission acknowledged the multi-dimensionality of poverty, it maintained the historical reliance on survey consumption data but revised the Rupee cutoff values away from a calorie criterion towards a broader basket of food, health, and education expenditures.

Our analysis compares the poverty status of a household in 2012 (round two) to its status in 2005 (round one). For poor households in round one, we investigate whether they escaped poverty or remained poor; for non-poor households, we investigate whether they fell into poverty or remained non-poor. Thus our dependent variable is the poor or non-poor statuses of a household in round two given that the household was non-poor or poor in round one. For new household splits in round two, we trace back their poverty status to the origin household in round one.

We investigate round one household characteristics, focusing especially on caste and religion. In the multivariate models, we add highest adult education in the household, main source of income, land owned, irrigated land or not, household composition, social networks, and state dummies (see means in Appendix Table 1 ).

Descriptive Statistics

Source: Authors’ calculations from the Indian Human Development Survey.

Note: Observations have been weighted according to weights in the file to reflect the 2011 Indian population.

• Caste – We divide all households into four groups, Adivasis (Scheduled Tribes), Dalits (Scheduled Castes), OBCs (Other Backward Classes) and Forward Castes (all others). We use this fourfold classification for both Hindu and non-Hindu households because in other analyses not reported here we find that the differences between self-reported caste groups among Muslims, Sikhs, Christians, and others largely parallel those among Hindus.
• Religion– We include four groups: Hindus, Muslims, Sikhs and Christians, and all others which includes Buddhists, Jains, Zoroastrians, Tribals, others, and none (not reporting any religious affiliations)
• Highest Educated Adult – This variable gives the highest level of education attained by any adult aged 21 or over in the household; for the few households with no adult, we used the education of the person designated as the household head. We divide years of educational attainment into six groups.
• Main Income Source – IHDS collected detailed income data from over 50 possible sources. We group these into eight major sources (farm, agricultural wage labour, non-agricultural labour, regular salaried, self employment, family business, property or pension income, remittances, and government benefits) and classify the household according to the source of the largest income share.
• Land Class – We first divide households into those who do and do not own agricultural land, and then for those with land, we calculate the logarithm of hectares owned. In order to avoid missing values, non-landed households are assigned a low value on landsize (0.1 hectares), thus constraining the landed/landless dummy coefficient to compare nonlandowners with very small landowners and reserving the analysis of land size only to households with some land. We also included a dummy variable for whether any of the household’s land was irrigated.
• Bank account – An “eligible woman” in the household, an ever-married woman 15–49, was asked whether the household had a bank account and whether her name was on the account. Approximately 1 in 6 households did not include an eligible woman so the survey has no information on whether the household had a bank account or not. This information is important enough that we tested the role of bank accounts for these eligible woman households, substituting the mean (0.36) for missing data and adding a dummy variable to identify the households with missing data. 4
• Member of credit/savings group – IHDS asked whether a household was a member of any of nine different types of organizations; we focus on membership in a “credit/savings group”.
• Debts – Households were asked to report how much they currently owed others, from which we calculated a simple dichotomy of any debt versus no debt.
• Social Networks – This variable captures whether a household is acquainted with a government official, a teacher or school staff, or a medical official.
• Household structure – Household size is the total number of persons in the household and the dependency ratio is the number of non-working household members per working members of the household.
• We also included 21 state dummies to control for the wide range of regional differences in levels of and changes in poverty. We collapse several smaller states with small survey samples into regional groups, narrowing the number of states from 31 to 22.

We begin by reporting simple cross-tabulations of poverty rates, exits, and entrances by caste, religion, and other background variables. We compare groups using simple percentage differences, but as will be quickly apparent, those statistics can be misleading when groups are starting at such different levels of poverty.

The more analytic part of the paper uses a dynamic logistic regression model that takes as the dependent variable the poverty status (0/1) of households in time t (the 2012 IHDS survey) separately for households who were poor or nonpoor at time period t −1 , factoring in a range of control.

• Y t =Poverty status in current period.
• Y t −1 = Poverty status in initial time period.
• X t −1 = Set of controls in initial time period (social group, education etc.)
• λ t−1 = Inverse Mills’ ratio
• ε t = Error term

The logistic regressions have the advantage of comparing groups by their log odds of escaping or entering poverty, comparisons that are not so closely determined by their initial poverty levels, as are percentages differences. For example, a group with a 20% poverty head count ratio that fell to 10% experienced the same change in log odds as a group that began with a 50% poverty rate that fell to 31%. Although the former group changed by only 10 percentage points, its poverty rate was cut in half; while the latter group had a 19 percentage point change but its poverty rate was reduced by only 38%.

All analyses are weighted by the sample weights in the IHDS2 files to reflect the national population. We also correct the standard errors to account for clustering into the 2435 primary sampling units.

Robustness checks

Our main analyses use the conventional Indian measure of household poverty that is based on consumption expenditures per capita using a poverty line drawn by the Tendulkar Commission. There are many other possible ways of identifying Indian poverty, and it is possible that our results would differ with different poverty definitions. We re-compute the analysis for some although certainly not all of these possibilities. Instead of adjusting for household size by using a per capita measure of consumption, we also use an “equivalenced” measure that divides total household consumption by the square root of the number of persons in the household – an adjustment more common in poverty measures in high-income countries. We also construct a measure of “severe poverty” with a cutoff at 80 percent of the official line and a measure of “near poverty” with a cutoff at 125 percent of the poverty line. Finally, we take advantage of the wide range of economic indicators available in the IHDS by using household income and household assets as measures of economic standing, drawing the poverty lines at a level to identify an equivalent percentage of the population as with the more conventional consumption measure.

Descriptive statistics

Poverty decline.

As with other data sources, we find that the head count ratio fell substantially over time from a high of 38 percent in 2004/05 to 21 percent in 2011/12, a drop of 17 percentage points. The decline was pervasive: all groups showed declining poverty over this period, although not always by equal amounts. By one measure, more poverty reduction happened in rural areas, which saw a 17 percentage point fall from 42 percent to 25 percent, as compared to 15 points in urban areas from 28 percent to 13 percent. However, the urban rate fell by more than half while the rural rate fell by slightly less than half so by that metric urban areas did better. The simplest overall summary is that poverty fell substantially in both rural and urban areas although the urban advantage was maintained.

A comparison across caste groups also shows substantial drops for all groups but the largest percentage point fall for Adivasis (23 points, see Figure 1 ). Dalits and those from other backward classes (OBC) experienced similar percentage drops of 18 to 20 points while Forward castes experienced only a 12 percentage point drop. The most vulnerable groups have had larger percentage point declines than the better-off groups, though these reductions are from very high poverty levels in the first round. So, while Forward castes and OBCs have had poverty rates fall almost in half, for Adivasis poverty declined by only a little over a third. And despite the major reductions, poverty levels are still very high for the Adivasis. Similarly, despite significant reductions for OBCs and Dalits, the caste differentials persist.

Poverty Incidence in 2005 and 2012 across Social Groups (IHDS).

We find that Muslims have done well, registering a 21percentage point reduction, 4 percentage points more than the Hindus. Close behind are the other minority religions and the Hindus with 16 and 17 percentage point reduction. Sikhs and Christians together show low reductions; this is not unexpected as these are already low poverty communities.

Escaping and Falling into Poverty

Nationally, escaping poverty among the previously poor was far more likely than falling into poverty among the previously non-poor. That difference was an important reason for the decline in poverty over the seven years. Of the 38 percent of the population who were poor in 2005, 25 percent had escaped by 2012, almost two-thirds of the previously poor. Slightly offsetting this, only 8 percent of the population newly fell into poverty, only a little over one eighth of the 62 percent of the population who had been non-poor. These panel results demonstrate substantial churning over time among the poor. Most households who were poor in 2005 had left poverty by 2012; some of this may be quite transient poverty, however, there remains much persistent poverty as well. The majority (61 percent) of poor households in wave two had also been poor in wave one. The growing prosperity pulled many households out of poverty but also left an unfortunate minority who benefited little from the economic growth. Altogether, 13 percent of all Indians were poor in both surveys.

In what follows, we focus on the escape rates of those who were previously poor, and the descent rates of those who were previously non-poor. These rates provide a better comparison of caste and other differences in the relative chances of poverty transitions than do the total population percentages that are more strongly determined by the initial, often very different, poverty rates.

Escape and descent rates are similar for rural and urban India, although urban areas enjoy an advantage of higher rates of escape and lower rates of falling into poverty. In urban India 71 percent of the poor in 2004–05 escaped poverty by 2011–12, whereas only 64 percent of the rural poor escaped poverty over the same period. At the same time about 16 percent of the rural nonpoor in 2004–05 had fallen into poverty by 2011–12, as compared to only 8 percent in urban areas.

The share of those escaping poverty varies even more significantly across social groups ( Figure 2 ). Escaping poverty is closely tied to traditional privilege. The largest shares are from amongst the Forward Castes (73 percent of the previously poor had become nonpoor by 2012) followed by the OBCs with 70 percent escaping poverty. The Dalit poor fared less at 63 percent escaping over seven years. But by far the most disadvantaged were the Adivasi poor among whom only 48 percent managed to leave poverty between the two surveys.

Percent of those Escaping & Falling into Poverty in 2011/12 compared to 2004/05, by Social Groups (All India, IHDS)

The risk of becoming newly poor follows the same pattern of immiseration across social groups. Among Adivasis who were not poor in 2005, 24 percent had become poor by 2012. Dalits follow next with 19 percent of the previously nonpoor falling into poverty. But only 14 percent of nonpoor OBCs had become poor between the two surveys, and an even lower 9 percent for Forward castes.

Thus, despite the fact that poverty incidence has fallen substantially and large numbers have managed to escape it, the handicap of historic exclusion and continued marginalisation is still felt by the most disadvantaged groups; fewer amongst them are able to lift themselves out of poverty and more of them risk falling back into it. Some of the differences among social groups and between rural and urban residents probably reflects the fact that non-poor Dalits and non-poor rural residents may be closer to the poverty line than others and thus have a higher risk of falling back below that line. In the multivariate analyses, we can control for those differences.

Lagged Logistic Regression

Large segments of the Indian population have moved out of poverty, but which household characteristics enabled them to escape poverty or put them at risk of falling into poverty? We run two lagged logistic regressions to tease out some of these effects. First, we measure the odds of a person who was poor in wave one becoming non-poor in wave two, given demographic, economic and social characteristics of the household in wave one. Then we measure the odds of a person becoming poor in wave two given that the person was not poor in wave one. We proceed stepwise for each equation, first calculating a reduced form model to investigate variations across caste and religion and between urban and rural areas. These models also control for the household’s economic distance from the poverty line, state fixed effects, and a selection effect based on attrition between the two surveys. Then we add controls for social background and economic resources that may explain the group and rural-urban differences: highest adult education, main income source, bank and credit resources, landholding, irrigation, social capital, dependency ratio, and household size.

Urban/rural differences

Table-1 gives the odds ratios of escaping and falling into poverty in wave two, separately for those who were poor and nonpoor in wave one. For the social group characteristics reported in the reduced form models, the results are similar to the bivariate results reported above with some interesting exceptions.

Regressions of 2004–5 to 2009–10 poverty transitions, on 2004–5 characteristics.

Source: Authors’ analysis of India Human Development Surveys.

First, urban households’ advantages noted above are found only for the risk of newly falling into poverty. Among the nonpoor in 2005, urban residents had less than two-thirds the odds of becoming poor in the second wave as did rural residents of the same expenditure level, living in the same state. The volatility of rural incomes is clearly reflected in this difference, but the non-significant difference for escaping poverty suggests also that urban poverty may be as persistent as rural poverty.

Rural residents’ higher risk of falling into poverty is more than explained by their disadvantages in education, income sources, and other resources. In the full model with all these controls, urban residents have almost twice the risk of falling into poverty as equivalent rural residents.

And their chances of escaping poverty are only about half that for similar rural residents. As we will see below, urban residents’ greater human, social, and financial capital cushions them from poverty transitions; except for these advantages, their poverty transitions would be even higher than for rural residents.

Social groups and religion

Caste differences also follow the bivariate results reported above, but unlike the rural-urban differences, the regression results show that caste differences are quite similar for falling into and escaping poverty. The enormous handicap of Adivasis is shown well in these coefficients. Adivasis had just 40 percent of the odds that Forward Castes had of escaping poverty. At the same time, they were two and a half times as likely as Forward Castes to newly fall into poverty. Surprisingly little of these higher risks are explained by Adivasis’ lower educational, social, and economic resources. In the full model, Adivasis still had 49 percent of the odds of equivalent Forward Castes of escaping poverty and 1.7 times the risk of newly falling into poverty.

Dalits also were disadvantaged both in escaping and avoiding poverty between the two surveys. They had just 64 percent of the chance that Forward Castes had of escaping poverty and were two times as likely to fall into poverty; not as disadvantaged as Adivasis, but still substantially more at risk than Forward Castes or even OBCs. Interestingly, most of the Dalit disadvantage can be explained by their lower resources included in the full model. Their lower odds of escaping poverty rise from 64 before controls to a non-significant 88 percent after; and their higher risk for newly falling into poverty drops from 2.0 times to a non-significant 1.1 times after controls. The smaller risks after controls may be an optimistic result; to the extent these social and economic resources are subject to policy interventions or to Dalits’ own efforts, we can expect their higher poverty rates to eventually disappear.

OBCs were not very different from Forward Castes: they were not significantly different from the Forward Caste odds of escaping poverty. Their odds of falling into poverty are 1.24 times the odds for Forward Caste,, a difference that is entirely explained by their lower resources.

Muslim disadvantages in poverty transitions are somewhat different. As shown in the reduced form models of Table 1 , Muslims have slightly lower odds of escaping poverty and slightly higher risks of falling into poverty than Forward Caste Hindus. Their relative disadvantages are most similar to the relative risks facing OBCs. But their position looks quite different after controls for their 2005 resources are included in the full model. Compared to Forward Caste Hindus in a similar educational, social, and economic position, their odds of escaping poverty are 0.789 times the odds for Forward Castes, while their chances of falling into poverty are 1.407 times that for Forward Castes. That is, controls for their resources shows Muslims to be more, not less, vulnerable to poverty transitions.

Resources: Education

Education is the quintessential human capital credential and provides strong and consistent protection against falling into poverty. A household with a college graduate is 0.56 times as likely to fall into poverty than an equivalent illiterate household (i.e., illiterate households are over two times as likely to fall into poverty as a household with a college graduate). Even for households who were poor in 2005, those with higher education were able to escape more often, but the education effect on avoiding poverty is larger and extends further down the schooling ladder than the education effect on escaping poverty. As Table 1 shows, difference between educated and illiterate households in escaping poverty is statistically significant only when an adult household member has a college degree, in contrast, even completion of primary education significantly reduces the odds of falling into poverty and this effect increases at higher levels of education. Compared to illiterate households, the odds of escaping poverty are 0.814, 0.618 and 0.435 respectively for households with 5–9 grades of education, 10–11 grades and college degree respectively.

More education is also part of the reason why urban residents escape poverty more often than rural residents and why Forward Castes escape more often than Dalits. None of these differences are completely explained by education. Logistic regressions controlling only for education (not shown) suggest that substantial differences would remain even if the groups had equal education. But educational differences are perhaps the most susceptible to policy intervention among the resources we study so their importance in reducing (although not eliminating) age-old social disadvantages should not be understated.

Income sources

Part of the reason education provides protection against poverty is that it may provide entrance to stable jobs. Employees with a regular monthly salary have lower odds of falling into poverty than all other households. These salaried jobs have the dual advantage of paying well and paying steadily. Only 20% percent of salaried households were in poverty to begin with in 2005. And the chances of the other 80% percent entering poverty after seven years were among the smallest for any type of household.

However, for the 20% percent of salaried households already in poverty in 2005, their salaried positions were not nearly as good a benefit for escaping poverty by 2012. Poor salaried households were not significantly more likely to exit poverty than were poor cultivating households. For the poor, a steady salary may also mean steady poverty. The salaried advantage is a low frequency of initial poverty because of higher than average incomes and low risk of falling into poverty because of the steadiness of incomes, but a steady salary is not much comfort if a household is already at a poverty level.

There are surprisingly few differences among other sources of income in households’ odds of transitioning into or out of poverty once initial economic and social levels are held constant. Cultivators appear to have no more or no less chance of falling into or escaping from poverty than do business households or those depending on wage labour. Wage labour households are more likely to start out poor, but holding constant that initial level, they are no less likely than equivalent cultivating or business households to escape poverty – nor no more likely to fall into poverty if starting as non-poor. Nor are households primarily receiving remittances, government benefits, or property income very different, although our samples of those households are especially small so any conclusions about their transitions must be especially tentative.

Among cultivators, there is some evidence that larger landowners may have been better off due to their asset stability; the more land owned the lower the risks of falling into poverty and the greater the chances of escaping poverty. But more importantly, access to irrigation reduced subsequent poverty risks for cultivators, as they are not dependant on seasonal rains for their water needs. As Table 1 shows, landowners with irrigation are 0.651 times as likely to fall into poverty as compared to those landowners who depend on seasonal rains. Irrigation was even helpful for cultivators escaping poverty, increasing their odds to 1.277 times the odds of more rain-dependent cultivators.

As would be expected, bank accounts help prevent falls into consumption poverty and are significant also for rising out of poverty. The expansion of banking across India offers a major opportunity to reduce the volatility of poverty transitions. Membership in a credit society appears less successful in smoothing out consumption volatility in order to avoid poverty. The IHDS results also confirm the importance of debt as a source of falling into poverty: Nonpoor households who report having some debt in 2004–5 have a 26 percent greater chance of having fallen into poverty seven years later; debts did not lower or raise the chances of poor households escaping poverty between the two surveys.

Household Structure

Larger households have less chance of falling into poverty and more chance of escaping poverty once there. More people may mean more labour resources for the future and a greater flexibility to utilize all household resources. Similarly, a higher dependency ratio in 2005 also raises the chances of escaping poverty or not falling into poverty in the next seven years. This may seem counter-intuitive at first since cross sectionaly, the fewer household members who work, the more likely the household is to be in poverty. But some of these dependents in 2005 can later enter the labour force, especially young men who finish their education, thus enabling the household to escape poverty or to avoid falling back into poverty. And young women may finish their schooling and marry out of the household thus raising the per capita consumption levels. Measurement issues may play a role in the household size relationship since the poverty line is drawn on the basis of consumption per capita, so that larger households have a larger denominator. But, as we see in the robustness checks, poverty measures with lower penalties for household size also show larger households had higher rates of transition out of poverty and less chance of falling into poverty.

Selection effects and distance from the poverty line

Not surprisingly, the further above the poverty line a household is, the lower its risk of falling into poverty seven years later. And poor households closest to the poverty line are the ones most likely to escape poverty. Some of this beneficial effect can be attributed to other characteristics of those households, higher in per capita consumption: they tend to be better educated, more likely to have a salaried job, and more likely to own irrigated land. But the remaining importance of absolute levels of per capita consumption reminds us that the poor and the nonpoor are not discrete categories but necessarily somewhat arbitrary lines drawn in a consumption continuum. Controlling for the a household position on this continuum is nevertheless important since other differences, for instance, between Dalit and Forward Caste households, are often more a result of the fact that poor Dalit households are much poorer than the poor Forward Caste households. It is as much their greater poverty than their Dalit status that holds them back from escaping poverty or increases their risks of falling back into poverty.

The probability of a household being re-interviewed is positively related to a higher risk of falling into poverty or not escaping poverty. Re-interviewed households are in some ways similar to households at greater risk. This may be somewhat surprising since poverty in 2004–5 is correlated with attrition between the two surveys. Re-interviewed households have much in common with the measured social and economic characteristics of households at less risk of falling into poverty. Larger rural households with more land were more often re-interviewed in 2011–12; households with less property ties to their villages and neighbourhoods were more likely to have left after seven years. The positive association between likelihood of attrition and escapes from poverty only appears after these other factors are held constant. The types of households who were not found – who had migrated out of their original villages or urban neighbourhoods – resembled households who improved their economic position over the next seven years. This resemblance may also suggest that unmeasured characteristics of households who improved may be similar to the unmeasured characteristics of households who left their original homes to make a better life somewhere else. In any case, the results show some evidence of selection effects that temper our results somewhat because out-migrants are not included in the sample.

Poverty definitions have long been an intense focus of debate both internationally ( Atkinson, forthcoming ) and in India ( Deaton and Kozel 2005 ). For our analysis of transitions into and out of poverty, the important question is whether different definitions would yield different conclusions. Our robustness checks vary assumptions about economies of scale, about where to draw the poverty line, and about which economic dimension (consumption, income, or assets) is used to define poverty. Results for each of these measures are reported in Appendix Table 3 . For the most part, the main conclusions described above are not affected by the choice of poverty measure. For example, salaried employment protects against falls into severe poverty or into near poverty; whether consumption, income, or assets are used to rank households; and whether household size is adjusted to a per capita measure or less drastically to an “equivalenced” measure using the square root of household size. Nor do any of these alternative poverty measures reveal much effect of salaried employment on the odds of escaping poverty once there.

Appendix T3.a

Logistic Regression using Alternate Poverty Measures

Some exceptions to the main patterns are understandable. For example, having a bank account protects against falls into consumption poverty or into asset poverty, but not so clearly against falls into income poverty. Also, poverty status between the two surveys is more stable when poverty is measured in terms of household assets rather than household consumption: using asset poverty, only 4 percent of Indians became newly poor between the two surveys and only 19 percent left poverty. The corresponding percentages for consumption poverty were 7 percent and 29 percent.

Our IHDS results reaffirm the conclusions that poverty has indeed fallen substantially over this seven-year period. In addition, they enable us to quantify the household transitions both out of but also into poverty despite the overall trend. We find that the majority (65%) of households who were poor in 2005 had escaped poverty by 2012. This is a remarkable achievement that documents how even the poor shared economic prosperity during these times.

Their successes were only partially offset by the 14% of the non-poor who fell into poverty during this period. These newly poor, however, raise the issue of transient poverty. Not all the poor have always been poor, and public policy responses to the transient poor may need to be quite different from policies for the long-term poor ( Krishna 2007 ). Nevertheless, long-term poverty remains a problem. Despite the fact that most of the 2005 poor had escaped poverty by 2012, most of the households who were poor in 2012 had also been poor in 2005.

Falling into poverty versus Exiting from poverty

A household’s level of human and physical capital is more important in explaining who avoids falling into poverty than explaining which poor households escape poverty. Not surprisingly, more education reduces not only levels of poverty but also especially new entrances into poverty. Higher education also enhances exits from poverty but at a lower rate than reducing new entrants. While neither entering nor remaining in poverty is common among the best educated, education reduces poverty more because it reduces falls into poverty rather than helping families escape. The best educated never experience poverty at all. Or, to observe from the other end, illiteracy both raises the risk of falling into poverty and reduces the chances of escaping, but the effect on falling into poverty is much greater than the effect on remaining in poverty. As a consequence, the illiterate are especially vulnerable to spells of poverty.

Salaried employment reduces poverty in much the same way. Households with a salary income have a steady and reliable source of support that cushions them against economic misfortune. They rarely fall into poverty although on the rare instance when that happens, they are little more likely to emerge quickly than are farmers or business owners.

Irrigated land protects farmers in much the same way as higher education or a salaried income protects all households. Farmers with irrigation are less likely to fall into poverty than small farmers without irrigation, but for the minority who have become poor, these assets are somewhat helpful in escaping poverty.

Rural areas also have higher poverty rates primarily because rural households are more likely to fall into poverty. An agricultural base induces dependency on the fluctuations of seasonal weather patterns, and these fluctuations drive rural households into poverty more frequently than urban households. These fluctuations may be increasing in frequency, such as fluctuations in the Indian monsoon rains, and could be a manifestation of global climate change. However, rural households escape poverty at rates not much different than urban households; in fact in the reduced form model the rural-urban difference is not statistically significant. So, rural poverty is disproportionately a problem of higher risks of falling into poverty. This higher risk is explained by the opportunities available to rural households: less educated, less of a chance for salaried jobs, fewer bank accounts; these and other differences are important enough that in the full model comparing urban and rural households with equivalent characteristics, it is the urban residents who have a higher risk of falling into poverty.

These background factors in 2005 are somewhat better at predicting which households avoid falling into poverty than identifying households who escape from poverty. For the most part, the measures that predict exiting poverty, also predict not falling into poverty, but the odds are generally lower and sometimes not statistically significant. The caste variables are a partial exception to these stronger effects on entrances than exits. Our analysis shows that while Dalits and Adivasis have experienced major movements out of poverty, they still lag behind OBCs and Forward Castes in both rates of exit from poverty and avoiding new falls into poverty. Dalits and especially Adivasis suffer from the worst of both worlds: they have lower rates of escape and higher rates of entry. Much of the disadvantage for Dalits can be explained by their lower levels of human capital, especially their lower education, the lack of salaried employment, and their smaller households. But these same factors do not explain as much of the Adivasi disadvantage. Adivasis remain at a higher risk of poverty – both entries and lack of exits – than equivalent Forward Caste Hindus. They suffer equally from the risks of falling into transient poverty and of remaining there, permanently poor.

Further research

The availability of panel data greatly expands our ability to understand the dynamics of poverty. In this paper, we have concentrated on the prior characteristics of households who escape or fall into poverty. The results help answer the question of who is most at risk of falling into poverty and who has the best prospects of escaping poverty. Many other questions can be asked of these panel data that are beyond the scope of the current paper. One fruitful area for exploration would be to investigate the intervening events between the two surveys that distinguish households who escaped poverty from those who remained; and households who fell into poverty from those who avoided that fate (e.g, Bane and Ellwood 1986 ). Household divisions, deaths and illnesses, new sources of income are among the many events that may propel households out of or into poverty.

Our analyses have also concentrated on the household characteristics that predict entrances into and exits from poverty, but households’ poverty transitions also depend on economic and social factors beyond the borders of the household itself. Transportation connections to employment, climate patterns, industry structure, and civil unrest are examples of the many contextual forces that need to be studied. Differences in public policies and in the implementation of those policies are especially important for poverty transitions. Other research using the IHDS data has shown that participation in the Mahatma Gandhi National Rural Employment Program may have played a useful role in reducing poverty ( Desai, Vashistha, and Joshi 2015 ).

It is also important to acknowledge that many regressors included in our analyses are endogenous, thus, the observed correlation between these regre ssors and poverty dynamics may well be spurious. For example, many caste associations set up banks, scholarship and hostels for students and food distribution programs. Thus, caste membership may determine education, bank accounts as well as household food consumption ( Desai and Dubey 2011 ). This argues for caution in interpreting these results and re-examining this evidence with panel data that has more than two rounds to better understand the dynamic nature of regressors along with the poverty dynamics.

Transient and Chronic Poverty

A growing literature on the dynamics of poverty has focused more on the questions of chronic poverty and poverty traps than on the questions of entries and exits that we have emphasized ( Shepherd and Mehta 2006 ; Glauben et al., 2012 ; Naschold 2012 ). While analyses of poverty durations are an obvious advance over earlier research that could look only at a single moment of poverty, we believe that identifying which households exit or enter into poverty offers a useful, more dynamic, alternative to earlier work on poverty durations. The characteristics of households who remain poor over the two IHDS waves identify the factors that raise the risk of chronic poverty. Similarly, the characteristics of nonpoor households who subsequently fall into poverty identify who is most at risk of transient poverty.

We also believe that the past poverty literature often pays insufficient attention to transient poverty, as if falling into poverty was less worrisome than remaining in poverty. Is it really worse for one household to be poor for two years than for two households to be poor for a year? Certainly, few have asked the poor themselves which experience is worse (although see Davis 2007 ). One can imagine that under some circumstances, transient poverty might be more distressing for previously nonpoor households than is persistent poverty for the long-term poor. Anirudh Krishna has been especially insistent that we should not neglect falling into poverty: “Falling into poverty is frequent, traumatic, frequently irreversible, and therefore serious enough to merit separate policy attention” ( Krishna 2007 : 1951).

Nor has there been enough research on the consequences of transient versus persistent poverty, for the children being raised in those households, for the physical and mental health of all the household members, or for the marriage bonds that hold nuclear households together or for the filial and fraternal bonds that hold together more extended households (but see Benzeval and Judge 2001 , Baevrea and Kravdal 2013). The sometimes too casual dismissal of transient poverty in the research literature (“being poor at a few moments in time” Barrett and Carter 2013) seems to suggest that poverty consequences must accumulate over time making persistent poverty more of the problem, but that is a largely unexamined assumption. Until we have better data on these consequences, a more balanced approach between new entries into poverty and the inability to escape poverty would leave us in a better position for future understanding.

Poverty research in India has enjoyed a long and distinguished history. We are ready to move to the next stage by better investigating the dynamics of entries and exits into poverty. Poverty is always a misfortune, but because different types of poverty may have different causes and consequences, we need to move beyond more static investigations or even analyses of trends based on repeated cross-sections.

This first look at IHDS panel data suggests that traditional social and economic disadvantage are reproduced in both types of poverty transitions: Dalits and Adivasis are more susceptible both to entry into and lack of escape from poverty than are Forward Castes or even OBCs. But other characteristics prove more important for one type of transition than another. Salaried work and more education are especially important for avoiding falls into poverty but they have less or even no role in predicting escapes from poverty. Our results demonstrate each of these possible relationships and thus reinforce the need to explore poverty dynamics more fully.

Appendix T3. b

• The study examines all India panel data for 2005 & 2012.
• It identifies people who escaped or fell into poverty over this period.
• Dalits and Adivasis face higher risk of falling into poverty then the rest
• Regression shows factors helping escape & falling are different from each other

Acknowledgments

We are grateful to our colleagues at the National Council of Applied Economic Research (NCAER), New Delhi, and especially the IHDS team there for helpful comments, throughout the preparation of this paper. An earlier version of the paper was presented at Jawaharlal Nehru University where we received several useful suggestions. We are also grateful for several useful ideas from World Development reviewers. Our data are from the India Human Development Surveys, 2005 and 2012. These surveys were jointly organized by researchers at the University of Maryland and NCAER. The data collection was funded by grants R01HD041455, R01HD046166, and R01HD061408 from the National Institutes of Health and by a supplementary grant from the Ford Foundation. Data management was funded by the UK government as part of its Knowledge Partnership Program (KPP) and analysis was carried out with the aid of a grant from the International Development Research Centre, Ottawa, Canada.

1 These estimates are based on the ‘thick’ rounds of Consumption Expenditure Survey for 2004/05 and 2011/12 conducted by the National Sample Survey Organisation. Planning Commission of India Press Release

2 NSS - Consumption Expenditure Data is a large countrywide sample survey conducted every 5 years and collects household level information on rupee expenditure on consumed items. This household consumption expenditure is then used as a proxy for the household’s monthly income.

3 The Government of India appointed a committee under the chairmanship of the Suresh Tendulkar. The Committee reviewed the existing methodology of estimating poverty in India and recommended new poverty lines for the rural and urban areas. ( GOI, 2009 ). For details of methodology, click link to online the report ( Tendulkar Committee Report Online )

4 Thus, the coefficient for having a bank account reflects the importance of banks only for the 82 percent of households with eligible women; we cannot test whether the estimate would be different in other households. The value of the substituted mean, 0.36, has no effect on this coefficient but determines the size of the eligible woman dummy coefficient.

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Contributor Information

Amit Thorat, Jawaharlal Nehru University.

Reeve Vanneman, University of Maryland, U.S.A.

Sonalde Desai, University of Maryland, U.S.A.

Amaresh Dubey, Jawaharlal Nehru University.

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Essay on Poverty in India 

Essay on Poverty in India

What is Poverty? Poverty is defined as the lack of sufficient money to meet basic needs such as food and shelter. Poverty is a situation in which a person is homeless and has very little money. Due to the growing population in urban areas, India’s poverty rate is rising. The most important fact is that huge numbers of people live in poverty, with the majority living on the edge of it. Poverty in India is mostly observed in rural regions due to a large number of uneducated and unemployed people within the growing population.

Many people cannot afford proper food for their daily lives, and because they do not have their own homes, they sleep on streets or footpaths. As a result, more people require more food, money, and shelter, but poverty grows rapidly due to a lack of these resources. This is why the rich become richer and the poor become poorer, making it difficult to bridge the gap. Poverty has several consequences, including poor housing, illiteracy, increased child labor and unemployment, and poor hygiene. As a result, these poor individuals cannot afford a balanced diet, decent clothes, or a good education for the simple reason that they do not have enough money.

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Ways to Reduce Poverty :

Poverty may be reduced by providing sufficient education and facilities to farmers, allowing them to become more profitable and not feel the need to migrate to cities in search of work. Also, uneducated individuals should receive a good education to improve their lives, and family planning is also necessary for getting out of poverty. Poverty in our country dates back to ancient times, when the poor were not given the same privileges as the wealthy, and they were even denied access to religious places. Unemployment, a lack of education, poor resource utilization, corruption, and poor government policy are all major causes of poverty.

In India, poverty is high when compared to other nations due to the poor growth rate of per capita income per person. Due to a lack of career prospects, many individuals work as rickshaw pullers, construction laborers, domestic servants, and other low-wage jobs, which leads them to live in slum areas.

In addition, lack of land resources has been one of the key reasons for poverty in India; even small farmers in our nation are poor since they cultivate but do not receive fair pay in terms of profit, resulting in poverty.

The population of India as a Major Cause of Poverty :

Since the beginning of time, poverty has been an unavoidable problem. Under British colonial authority, poverty in India worsened from the late 19th century through the early 20th century, peaking in the 1920s. During this time, the colonial government de-industrialized India by restricting the production of finished garments and other goods by Indian craftsmen.

From then till recent times, the situation has been quite the same or has even worsened in many places. In 2013, the Indian government reported that 21.9% of the country’s population lived below the official poverty line. In other words, India, which accounted for 17.5% of the world population, had 20.6% of the world’s poorest people in 2013. Rural areas are home to a huge number of poor people. Poverty is more severe among members of scheduled castes and tribes in the country’s rural areas.

Population Trends in India :

India’s population has been rapidly increasing. In 1991, India’s population was around 84.3 crores, with a high rate of poverty; now, our country’s population is around 130 crores, with the population nearly doubling in the last three decades, but not enough has been done to control poverty in our country. As the population grows, so does unemployment, and poverty is just a reflection of unemployment. More capital is necessary for developing industry, providing adequate transportation, and other projects, as a result of which the country’s deficiency is underdeveloped and more people live in poverty. Lack of skilled labor also contributes to poverty since less-skilled workers lack industrial training and education and miss out on opportunities that more skilled workers can avail. Lack of infrastructure means that transportation and communication have not been properly developed, resulting in farmers receiving fertilisers for cultivation late and industries receiving power and raw materials not on time and thus, end products not being properly marketed and reaching customers on time. Hence, to escape poverty, our government must be more serious, and citizens must share equal responsibility.

Conclusion : Remarkably, as a result of rural-to-urban migration, the incidence of rural poverty has fallen steadily. First and foremost, population growth should be strictly controlled to tackle the serious problem of poverty. Other approaches to fight this problem include expanding work possibilities, educating people, eliminating black money, decentralized planning, and assisting women and youth in becoming self-sufficient. Empowering the weaker and most backward sections of society is also expected to help reduce poverty. We are not failing to achieve our goals owing to a lack of resources or technical support, but rather due to a lack of execution of our plans and programs.

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India’s triumph over poverty: A decade of transformation

India has almost eliminated extreme poverty, with only 2.2 per cent of its population living below the world bank's poverty line..

Listen to Story

The central point of any election is usually the upliftment of the poor, from slogans of ‘Roti, Kapada aur Makaan’ to ‘Sabka Saath, Sabka Vikas’ . Politicians often woo the votes of the country’s poor with such catchphrases, but recent data reveals that there really has been a transformative shift over the past decade.

A CLOSER LOOK AT DATA

Extreme Poverty: About a decade ago, 12 out of every 100 people in India lived on $1.90 PPP (Purchasing Power Parity) a day or less. Today, that number has dropped to just 2 out of 100. This means millions of people now have enough to meet their basic needs.

Higher Poverty: Previously, 54 out of every 100 people lived on $3.20 a day or less. Now, only 17 out of 100 people face this level of poverty. This significant drop shows a broader improvement in living standards across the country.

India has almost eliminated extreme poverty, with only 2.2 per cent of its population living below the World Bank's poverty line. This figure could be even lower if we account for the full value of subsidised food.

“At the World Bank’s extreme poverty line of $1.90 per day, India appears to have nearly eradicated extreme poverty (with a national poverty rate of 2.2 per cent before adjusting for food and other subsidies),” noted economists Bhalla and Bhasin in their latest paper.

What's New: The latest household consumption expenditure survey data from the National Sample Survey Organisation (NSSO) is now available with micro-level details. These insights enable accurate estimates of poverty levels across different states, and in both rural and urban areas.

The World Bank (2018) noted that while longer recall periods capture infrequent purchases, they risk underreporting. Short recall periods reduce this but can cause telescoping errors. "Global poverty count produced by the World Bank will soon no longer be based on the URP for India, and a switch to the MMRP will occur," the World Bank stated.

One of the main reasons for the vast difference in poverty estimates is the difference in the methodology of each paper. There are no official poverty figures in India between 2013 and 2023. However, researchers estimated half a dozen different estimates of poverty in India in this period. These estimates suggest that the percentage of people living in poverty varies from 2.5 per cent to 29.5 per cent of the population, depending on the source and the time between 2013 and 2023.

While Bhalla and Bhasin's findings offer an encouraging narrative about poverty reduction in India, it is essential to critically evaluate their claims in the broader context of ongoing socio-economic challenges.

Expert Srijit Mishra of the Indira Gandhi Institute of Development Research suggests in his latest paper that the updated poverty estimates indicate a lower poverty incidence compared to previous rounds, but this could be due to the non-comparability of data and the design of the 2022-23 survey.

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Governance Questions in UPSC Mains (GS 2)

• To what extent, in your opinion, as the decentralisation of power in India changed the governance landscape at the grassroots?
• To what extent, in your view, the Parliament is able to ensure accountability of the executive in India?
• “Pressure groups play a vital role in influencing public policy in making in India.” Explain how the business associations contribute to public policies.
• The jurisdiction of the Central Bureau of Investigation (CBI) regarding lodging an FIR and conducting a probe within a particular state is being questioned by various States. However, the power of the States to withhold consent to the CBI is not absolute. Explain with special reference to the federal character of India.
• Do Department-related Parliamentary Standing Committees keep the administration on its toes and inspire reverence for parliamentary control? Evaluate the working of such committees with suitable examples.
• Can civil society and Non-Government Organisations present an alternative model of public service delivery to benefit the common citizen? Discuss the challenges of this alternative method.
• “Institutional quality is a crucial driver of economic performance”. In this context suggest reforms in Civil Service for strengthening democracy.
• “The emergence of Fourth Industrial Revolution (Digital Revolution) has initiated e-Governance as an integral part of the government”. Discuss.
• What are the methods used by the farmer’s organizations to influence the policy-makers in India and how effective are these methods?
• Implementation of Information and Communication Technology (ICT) based projects/programmes usually suffers in terms of certain vital factors. Identify these factors and suggest measures for their effective implementation.
• On what grounds a people’s representative can be disqualified under the representation of people act, 1951? Also, mention the remedies available to such a person against his disqualification.
• ‘In the context of the neo-liberal paradigm of developmental planning, multi-level planning is expected to make operations cost-effective and remove many implementation blockages’- Discuss
• The need for cooperation among various service sectors has been an inherent component of development discourse. Partnership bridges the gap among the sectors. It also sets in motion a culture of ‘collaboration’ and ‘team spirit’. In the light of statements above examine India’s development process.
• Performance of welfare schemes that are implemented for vulnerable sections is not so effective due to the absence of their awareness and active involvement at all stages of the policy process. Discuss.
• “Policy contradictions among various competing sectors and stakeholders have resulted in inadequate protection and prevention of degradation to the environment.” Comment with relevant illustrations.
• E-governance is not only about utilization of the power of new technology, but also much about the critical importance of the ‘use value’ of information.
• How far do you agree with the view that the focus on lack of availability of food as the main cause of hunger takes the attention away from ineffective human development policies in India?
• ‘Simultaneous election to the Lok Sabha and the State Assemblies will limit the amount of time and money spent in electioneering but it will reduce the government’s accountability to the people’ Discuss. (150 words)
• ‘To ensure effective implementation of policies addressing water, sanitation and hygiene needs, the identification of beneficiary segments is to be synchronized with the anticipated outcomes’ Examine the statement in the context of the WASH scheme. (150 words)
• Does the Rights of Persons with Disabilities Act, 2016 ensure an effective mechanism for empowerment and inclusion of the intended beneficiaries in the society? Discuss (150 words)
• Hunger and Poverty are the biggest challenges for good governance in India still today. Evaluate how far successive governments have progressed in dealing with these humongous problems. Suggest measures for improvement. (150 words)
• ‘Poverty Alleviation Programmes in India remain mere show pieces until and unless they are backed by political will’. Discuss with reference to the performance of the major poverty alleviation programmes in India. (250 words)
• “In the Indian governance system, the role of non-state actors has been only marginal.” Critically examine this statement.
• “Effectiveness of the government system at various levels and people’s participation in the governance system are interdependent” Discuss their relationship in the context of India.
• Has the Indian governmental system responded adequately to the demands of Liberalization, Privatization and Globalization started in 1991? What can the government do to be responsive to this important change?
• Examine the main provisions of the National Child Policy and throw light on the status of its implementation.
• Khap Panchayats have been in the news for functioning as extra-constitutional authorities, often delivering pronouncements amounting to human rights violations. Discuss critically the actions taken by the legislative, executive and the judiciary to set the things right in this regard.
• Examine critically the recent changes in the rules governing foreign funding of NGOs under the Foreign Contribution (Regulation) Act (FCRA), 1976.
• The Self-Help Group (SHG) Bank Linkage Programme (SBLP), which is India’s own innovation, has proved to be one of the most effective poverty alleviation and women empowerment programmes. Elucidate.
• In the light of the Satyam Scandal (2009), discuss the changes brought in corporate governance to ensure transparency, accountability.
• “For achieving the desired objectives, it is necessary to ensure that the regulatory institutions remain independent and autonomous.” Discuss in the light of the experiences in the recent past.
• Though 100 percent FDI is already allowed in non-news media like a trade publication and general entertainment channel, the government is mulling over the proposal for increased FDI in news media for quite some time. What difference would an increase in FDI make? Critically evaluate the pros and cons.
• The setting up of a Rail Tariff Authority to regulate fares will subject the cash strapped Indian Railways to demand subsidy for obligation to operate non-profitable routes and services. Taking into account the experience in the power sector, discuss if the proposed reform is expected to benefit the consumers, the Indian Railways or the private container operators.
• National Human Rights Commission (NHRC) in India can be most effective when its tasks are adequately supported by other mechanisms that ensure the accountability of a government. In light of above observation assess the role of NHRC as an effective complement to the judiciary and other institutions in promoting and protecting human rights standards.
• Do government’s schemes for up-lifting vulnerable and backward communities by protecting required social resources for them, lead to their exclusion in establishing businesses in urban economies?
• Has the Cadre based Civil Services Organization been the cause of slow in India? Critically examine.
• Two parallel run schemes of the Government, viz the Adhar card and NPR, one of voluntary and the other as compulsory, have led to debates at national levels and also litigations. On merits , discuss whether or not both schemes need run concurrently. Analyse the potential of the schemes to achieve development benefits and equitable growth.
• Many State Governments further bifurcate geographical administrative areas like Districts and Talukas for better governance. In light of the above, can it also be justified that more number of smaller States would bring in effective governance at the State level? Discuss.
• The product diversification of financial institutions and insurance companies, resulting in overlapping of products and services strengthens the case for the merger of the two regulatory agencies, namely SEBI and IRDA. Justify.
• The concept of Mid-Day Meal (MDM) scheme is almost a century old in India with early beginnings in Madras Presidency in pre-independent India. The scheme has again been given impetus in most states in the last two decades. Critically examine its twin objectives, latest mandates, and success.
• The Central Government frequently complains of the poor performance of the State Governments in eradicating the suffering of the vulnerable sections of the society. Restructuring of Centrally sponsored schemes across the sectors for ameliorating the cause of vulnerable sections of the population aims at providing flexibility to the States in better implementation. Critically evaluate.
• Electronic cash transfer system for the welfare schemes is an ambitious project to minimize corruption, eliminate wastage and facilitate reforms. Comment.

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