causes of poverty in india essay

Understanding Poverty in India: Causes, Estimation, and Challenges

Table of Contents

(Relevant for Economics Section of General Studies Paper Prelims/Mains)

Poverty, Best Sociology Optional Coaching, Sociology Optional Syllabus.

Poverty signifies a state or circumstance wherein an individual or a community lacks the necessary financial means and fundamental requisites to achieve a basic standard of living. It indicates that the earnings derived from employment fall to such a minimal extent that fundamental human necessities remain unattainable.

As per the World Bank’s perspective, poverty denotes significant deprivation in overall well-being and encompasses multifaceted dimensions. This encompasses inadequate income levels and the incapability to secure essential commodities and services vital for survival with dignity. Moreover, poverty encompasses limited access to proper healthcare and education, deficient availability of clean water and sanitation facilities, insufficient physical safety, absence of empowerment, and limited potential and opportunities to enhance one’s quality of life.

Within India, as of 2011, around 21.9% of the population resides below the national poverty threshold.

In 2018, nearly 8% of the global workforce and their families were constrained to subsist on an income of less than US$1.90 per individual per day, in line with the international poverty benchmark.

Poverty estimation in india

Poverty assessment in India is conducted by NITI Aayog’s task force, employing data gathered by the National Sample Survey Office under the Ministry of Statistics and Programme Implementation (MOSPI). The poverty line in India is determined by calculating the poverty threshold, which relies on consumption expenditure rather than income levels.
In India, the evaluation of poverty is based on consumer expenditure surveys carried out by the National Sample Survey Organisation. A household is classified as poor if its expenditure falls below a specified poverty line. The extent of poverty is gauged through the poverty ratio, denoting the proportion of the impoverished population to the total population, presented as a percentage and commonly referred to as the head-count ratio.
The Alagh Committee (1979) established the poverty line considering a daily minimum caloric intake of 2400 and 2100 calories for adults in rural and urban areas, respectively. Subsequent committees, such as the Lakdawala Committee (1993), Tendulkar Committee (2009), and Rangarajan Committee (2012), have contributed to refining poverty estimation methodologies.
According to the Rangarajan committee’s findings (2014), the poverty line is set at a Monthly Per Capita Expenditure of Rs. 1407 in urban regions and Rs. 972 in rural areas.
Population Explosion: India’s population has consistently surged over the years. In the past 45 years, it has grown at an annual rate of 2.2%, signifying an average addition of approximately 17 million individuals to the country’s populace each year. This surge further escalates the demand for consumer goods substantially.
Diminished Agricultural Productivity: A pivotal factor contributing to poverty is the low productivity within the agricultural sector. This situation is multifaceted. Primarily, it stems from fragmented and divided land holdings, lack of access to capital, ignorance regarding modern farming technologies, reliance on conventional cultivation techniques, and losses during storage.
Inefficient Resource Utilization: The prevalence of underemployment and concealed unemployment, particularly in the agricultural domain, has resulted in diminished agricultural output and a corresponding decline in living standards.
Limited Economic Growth Rate: Economic advancement has been sluggish in India, particularly during the initial 40 years following independence, prior to the economic liberalization reforms in 1991.
Escalating Prices: Persistent inflation in the country has augmented the hardships endured by the impoverished. While a small portion of the population has benefited, those from lower income strata have borne the brunt, struggling to meet even their most basic needs.
Unemployment: Unemployment stands as another notable contributor to poverty in India. The surging population has led to a concurrent surge in job seekers, but the growth of job opportunities has not kept pace with the escalating demand.
Shortage of Capital and Entrepreneurial Ventures: The insufficiency of capital and entrepreneurial activities has resulted in low investment levels and insufficient job creation within the economy.
Social Factors: Beyond economic factors, various social barriers obstruct the eradication of poverty in India. Some of these hindrances include inheritance laws, the caste system, and certain entrenched traditions.
Colonial Exploitation: The two-century-long British colonization and dominion over India had a detrimental impact, causing the decline of traditional handicraft and textile industries. The colonial policies converted India into a mere supplier of raw materials for European industries.
Climatic Influences: The majority of India’s impoverished population resides in states like Bihar, Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Odisha, Jharkhand, among others. Natural calamities such as frequent floods, disasters, earthquakes, and cyclones heavily impact agriculture in these regions.

The Global Multidimensional Poverty Index-2018, issued by the UN, highlighted that around 271 million individuals transitioned out of destitution between 2005-06 and 2015-16 within India. The poverty rate within the nation has nearly halved, plummeting from 55% to 28% over the course of a decade. Nevertheless, a substantial segment of India’s population still resides below the Poverty Line.The swift expansion of the economy and the integration of technology into social sector initiatives have played a pivotal role in significantly reducing extreme poverty within the country.Despite the rapid strides made in terms of growth and advancement, an unacceptably large portion of our populace continues to grapple with extensive and varied forms of deprivation. Consequently, addressing poverty in India necessitates a more comprehensive and all-encompassing strategy.

poverty in India, poverty estimation, poverty causes, poverty line, NITI Aayog, National Sample Survey Office, MOSPI, Alagh Committee, Lakdawala Committee, Tendulkar Committee, Rangarajan Committee, population explosion, agricultural productivity, resource utilization, economic growth rate, inflation, unemployment, capital shortage, social factors, colonial exploitation, climatic influences, Global Multidimensional Poverty Index, poverty reduction, technology integration, social sector initiatives, Best Sociology Optional Coaching, Sociology Optional Syllabus.

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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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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.

Paragraph Tips on Essay Writing

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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Poverty in India, Types, Causes & Latest Updates about Poverty in India

According to NITI Aayog's CEO, less than 5% of Indians are now below the poverty line. Read about Poverty in India, Types, Causes & Latest Updates for UPSC Exam.

Table of Contents

Poverty in India

When poverty is characterized by a severe shortage of basic necessities including food, clothing, and housing it is said to be as Poverty. It is frequently characterized by social marginalization, a lack of opportunity for personal development, and a lack of access to the resources and services necessary to maintain a respectable quality of living. Rapid population growth, slow economic development, unemployment, income disparity, price increases, political considerations, and social factors are some of the causes of poverty in India. We shall go into great detail on the causes of poverty in India in this essay.

Poverty levels below 5% in India

According to NITI Aayog’s CEO, less than 5% of Indians are now below the poverty line, with extreme destitution nearly eradicated, based on the Household Consumption Expenditure Survey. Rural incomes are rising faster than urban ones, narrowing the urban-rural consumption gap. Lower food spending and increased expenditure on consumer goods suggest improved incomes and changing lifestyles. With a rise in diverse food consumption, poverty is estimated below 5%. Social welfare schemes and rising consumption indicate destitution is almost eliminated, with over 25 crore people lifted out of poverty. India’s growth appears broad-based, challenging narratives of rural stagnation.

Poverty in India Background

Before the 1990s, when India had a closed economy, all of its residents had access to the resources they needed through the public distribution system. However, because of budgetary limitations and policy changes brought about by India’s entry into the global economy, the government was only able to deliver the resources that were required to the target population—those who were deserving of government aid.

The government eventually adopted the Targeted Public Distribution System as a result. In other words, individuals who fall below the poverty line received food that was subsidized by the government. Given that poverty has a wide range of causes and characteristics; it is challenging to define it precisely. It is different from city-country, rural-urban, etc. To put it another way, different viewpoints are used to define poverty.

However, the overall notion is that someone is considered to be living in poverty when they have less access to and affordability for necessities like food, clothing, and a place to live, healthcare, education, etc. Purchasing Power Parity and nominal relative basis are used by the UN and the World Bank to calculate poverty. As a result, different perceptions lead to different poverty estimations.

Types of Poverty in India

Absolute poverty.

It is the inability to obtain necessities for sustaining life, such as food, clothing, housing, etc. If a person cannot meet their fundamental necessities, they are seen to be poor. Countries designate a specific sum of money necessary to purchase a certain number of important food items based on a list of these things. People are considered poor and below the poverty line (those earning less than the amount designated for buying these products) if they are unable to purchase these items. It is referred to as absolute poverty.

Relative Poverty

Contrarily, individual poverty in India is contrasted. For instance, if I make Rs. 100 and my neighbour makes Rs. 200, I am significantly poorer than my neighbour.

Ability-Based Approach: Amartya Sen, a Nobel Prize winner, has advanced this theory. It examines poverty from the perspective of a person’s capabilities. To conduct a successful professional life and make a living, a person has to be educated and in good health. Lack of options for obtaining education and good health might make it difficult for someone to get employment, which can result in poverty. Some therefore urges the government to concentrate its spending and decision-making on enhancing public health and education.

Causes of Poverty in India

In India, poverty has several causes and is now one of the main social problems. In India, a sizable portion of the population suffers from poverty. In India, consumption expenditure is used to estimate poverty rather than income levels. Rapid population growth, slow economic development, unemployment, income disparity, price increases, political considerations, and social factors are some of the causes of poverty in India.

Poverty in India: Economic Causes

The main economic causes of poverty in India include a low tax base, high levels of tax evasion, and wealthy individuals avoiding paying taxes. the creation of a vicious cycle whereby impoverished individuals pay less taxes, which in turn results in less money being spent on assistance programmes for the poor.

Poverty and the creation of problems like Naxalism, which feeds poverty further, are both caused by regional disparity, as seen in North East and East India. The economic causes of poverty in India are corruption and leaks in government schemes and programmes. Many Poverty Alleviation Programmes have been launched by the government in India, however due to a lack of understanding, people are not taking advantage of them.

Despite the fact that more than 50% of the population is employed in agriculture, it only accounts for 15% of GDP, concealing unemployment in the industry. Higher unemployment rate in India is one of the major cause of poverty at some extent. It demonstrates that the agricultural industry is where the majority of the impoverished are concentrated. Growth in unemployment that began after 1990, when, despite an increase in GDP, the majority of jobs were generated in skilled industries, preventing revenue from trickling down to the lower socioeconomic echelons of society.

Poverty in India: Social Cause

Social factors like untouchability, caste system, etc., are major Causes of Poverty in India.

Untouchability: People from lower castes are denied democratic rights in several of the nation’s less developed regions. They are cast aside by society, which contributes to one of India’s causes of poverty by forcing them into poverty.
Caste System: The caste system divides society and keeps people from looking for employment outside of their caste. As a result, the wealthiest get richer and the poor get poorer.
Unethical use of Power: When power is abused, poor people suffer a number of negative effects. One of the main causes of poverty in India is the corrupt government.

Poverty in India: Geographical Causes

In the past 45 years, India’s population has grown by 2.2% year, directly affecting the demand for resources. The fertility of the soil varies from place to place and differs from one location to another. It causes barren fields and is one of India’s primary causes of poverty. In terms of poverty, the differences between urban and rural life have a variety of effects.

Poverty in India: Climatic Factors

Another factor contributing to India’s poverty is the country’s unstable political environment. A flood is a type of natural calamity that can significantly lower agricultural productivity. Poverty can result from this, which the government rarely attempts to combat. Drought is another climatic condition that contributes to poverty in India in addition to floods. Droughts are a frequent cause of poverty in most nations since they can endure for a very long time. Seasonal rainfall irregularities can also cause problems with poverty. One of the factors contributing to poverty in India is the disruption of predicted rainfall and agricultural output in several regions of the country.

Poverty in India Latest Update

According to a recent government estimate, India has seen a significant decline in poverty, with roughly 135 million people — or 10% of the population — fleeing it in the five years up to March 2021. According to the research, 343 million people in Uttar Pradesh, followed by Bihar and Madhya Pradesh, were the most people who have moved out of poverty.

According to the Multidimensional Poverty Index (MPI), poverty levels decreased most significantly in rural areas. Malnutrition, education, and sanitation are just a few of the 12 major characteristics that make up the MPI, and people who fall short in three or more of these categories are referred to as “MPI poor.”

Sharp drop in poverty

According to the report’s analysis of the 2019–21 National Family Health Survey, the percentage of the population living in poverty decreased from 25% in 2015–16 to 15% in 2019–21. The results are in line with a previous report by the United Nations Development Programme (UNDP), which claimed that in 2021, 16.4% of Indians lived in multidimensional poverty, down significantly from 55.4% in 2005.

Additionally, the UNDP projections showed that in India, the percentage of people living below the $2.15 per day poverty threshold had dropped to 10% in 2021.

Government’s role

The central government has put policies in place to help the underprivileged population, providing free food grain to about 800 million individuals, or about 57% of the nation’s 1.4 billion inhabitants. Additionally, states have provided considerable sums to subsidise electricity, healthcare, education, and other crucial services.

Poverty in India UPSC

Poverty is a problem that affects the entire country, not just one individual. It should also be addressed as quickly as feasible by using the proper solutions. In addition, eradicating poverty is now essential for the long-term, inclusive development of the population, society, nation, and economy. The UPSC syllabus includes the issue of poverty in India; hence applicants must be knowledgeable with all aspects of it. We have discussed the UPSC notes on the causes of poverty in this article to assist candidates as they study for the UPSC Prelims and UPSC Mains exams.

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Poverty in India FAQs

What is poverty in india briefly.

As per the methodology of the Suresh Tendulkar Committee report, the population below the poverty line in India was 354 million (29.6% of the population) in 2009–2010 and was 69 million (21.9% of the population) in 2011–2012.

What is the main poverty in India?

The Major Reasons for Poverty in India are the rising population, slow economic development, unemployment, unequal distribution of income and resources, etc.

What is poverty?

A poor household is defined as one with an expenditure level below a specific poverty line. The incidence of poverty is measured by the poverty ratio, which is the ratio of the number of poor to the total population expressed as a percentage.

What is the cause of poverty in India?

Lack of Capital and Entrepreneurship: The shortage of capital and entrepreneurship results in low level of investment and job creation in the economy. Social Factors: Apart from economic factors, there are also social factors hindering the eradication of poverty in India.

What are the causes of poverty in India?

Unequal distribution of land and other resources, less job opportunities, low growth rate of incomes, failure in promotion of economic growth and population control perpetuated the cycle of poverty.

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Essay on Causes of Poverty in India

Students are often asked to write an essay on Causes of Poverty 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 Causes of Poverty in India

Introduction.

Poverty in India is a significant issue affecting millions. It’s a complex problem with multiple causes.

Population Growth

Rapid population growth is a major cause of poverty. More people means more resources are needed, leading to scarcity.

Lack of Education

Insufficient education prevents people from securing good jobs, keeping them in poverty.

Unemployment

High unemployment rates also contribute to poverty. Without jobs, people can’t earn money to support themselves.

Social Inequality

Inequality in India, based on caste or gender, limits opportunities for certain groups, perpetuating poverty.

Poverty in India is caused by various factors. Addressing these issues is crucial for poverty reduction.

250 Words Essay on Causes of Poverty in India

India, despite its economic growth and development, is still grappling with the issue of poverty. It is a complex problem with a myriad of causes, deeply rooted in the country’s historical, social, and economic fabric.

Historical Factors

India’s history of colonization significantly contributed to its poverty. The British Empire exploited India’s resources, leading to economic stagnation and widespread poverty. The repercussions of this exploitation continue to affect the country’s economic scenario.

Social Factors

India’s rigid caste system also exacerbates poverty. Lower caste individuals often face discrimination and are denied access to resources and opportunities. This social stratification hinders upward mobility, perpetuating cycles of poverty.

Economic Factors

Economic inequality is another major cause. Despite India’s rapid economic growth, the benefits have not been evenly distributed. The wealth disparity between the rich and the poor continues to widen, leading to persistent poverty among the lower-income groups.

Rapid population growth also contributes to poverty in India. The pressure on limited resources, coupled with inadequate public infrastructure, leads to lower living standards and increased poverty.

Addressing poverty in India requires a multi-faceted approach. Economic policies should aim to reduce inequality and promote inclusive growth. Social reforms are needed to dismantle discriminatory practices and ensure equal access to opportunities. By tackling these issues, India can make significant strides towards eradicating poverty.

500 Words Essay on Causes of Poverty in India

India, despite being one of the fastest-growing economies in the world, grapples with the persistent issue of poverty. A significant portion of the population still lives under dire conditions. The causes of poverty in India are complex and multi-faceted, spanning from historical, social, economic, and political factors.

The roots of poverty in India can be traced back to the colonial era. British imperialism resulted in the exploitation and depletion of India’s resources, leaving a legacy of economic stagnation and underdevelopment. The colonial administration’s focus on cash crops over subsistence farming led to a decline in agricultural productivity, exacerbating poverty.

Caste-based discrimination is another significant factor contributing to poverty. The caste system, a deeply entrenched social hierarchy, often limits access to resources and opportunities for lower-caste individuals, perpetuating their state of poverty. Additionally, gender inequality, marked by a preference for male children and discrimination against women in access to education, health, and employment, further fuels poverty.

India’s economic structure is characterized by a large unorganized sector, which includes informal labor and small-scale industries. These sectors, marked by low wages, job insecurity, and lack of social security, are breeding grounds for poverty. Additionally, the unequal distribution of land and resources, with a small elite owning a large portion of the wealth, exacerbates economic disparities.

Political Factors

Political factors, such as corruption and poor governance, also contribute to poverty. Corruption diverts resources intended for development and welfare schemes, while poor governance leads to ineffective implementation of poverty alleviation programs. Moreover, the lack of political will to enact comprehensive land reforms perpetuates the economic disparities rooted in the feudal landholding system.

Rapid population growth is another significant factor contributing to poverty in India. High fertility rates, especially among the poor, lead to larger families with more mouths to feed, straining the limited resources and perpetuating the cycle of poverty. Moreover, it places immense pressure on the already strained public services, such as education and healthcare.

In conclusion, the causes of poverty in India are deeply intertwined, with historical, social, economic, and political factors acting in concert. Addressing poverty in India thus requires a comprehensive approach that acknowledges and tackles these interrelated factors. It necessitates not only economic reforms but also social and political changes, including the eradication of caste and gender-based discrimination, the improvement of governance, and the promotion of sustainable population growth.

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Essay on Poverty in india 100, 200, 300, 500 words

Essay on poverty in india.

Essay on Poverty in India : Poverty is one of the major challenges that India has been grappling with for many decades. Despite the significant economic growth that India has seen in recent years, a large proportion of its population continues to live in abject poverty. Poverty is not just an economic issue but a social and cultural issue which affects the lives of people in many ways. In this essay, we will examine the causes and consequences of poverty in India and some of the measures taken to remove it.

1. lack of access to basic resources

2. unequal distribution of wealth., 3. lack of access to education, 4. overcome the issues of poverty, 5. significant challenge, affects of poverty, how to reduce it, essay on poverty in india 500 words, causes of poverty:, consequences of poverty:, essay on poverty in india 200 words, essay on poverty in india 100 words, causes of poverty in india.

Poverty in India is a complex issue for many reasons. One of the primary causes of poverty is lack of access to basic resources such as food, clean water, health care, and education. India is a country with a high population density, and a large proportion of its population lives in rural areas where access to these basic resources is limited. Additionally, India has a high rate of illiteracy and unemployment, which further adds to the problem of poverty.

Another important reason for poverty in India is the unequal distribution of wealth. A small fraction of the population has access to wealth and resources, while a vast majority live in poverty. This inequality is mainly due to historical and social factors that have led to the concentration of wealth and power in the hands of a few.

The consequences of poverty in India are serious and far-reaching. Poverty leads to malnutrition, disease and premature death, especially among children. It also results in lack of access to education, which perpetuates the cycle of poverty. Poverty also leads to social exclusion and discrimination, which further marginalises vulnerable communities.

To overcome the issue of poverty in India, the government has implemented several measures. One of the most important measures is the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), which guarantees 100 days of employment to rural households. The government has also implemented various poverty alleviation programs such as the National Rural Livelihoods Mission (NRLM), Pradhan Mantri Gram Sadak Yojana (PMGSY) and Pradhan Mantri Jan Dhan Yojana (PMJDY).

However, despite these measures, poverty remains a significant challenge in India. More investment is needed in basic resources such as education, health care and infrastructure. The government needs to address the issue of income inequality by implementing policies that promote equitable distribution of resources. Additionally, greater awareness and social action is needed to address the cultural and social factors that perpetuate poverty.

Conclusion : poverty in India is a complex and multidimensional issue that requires concerted efforts from all stakeholders. While the government has taken several measures to address poverty, more investment is needed in basic resources and policies that promote equitable distribution of wealth. Additionally, greater awareness and social action is needed to address the cultural and social factors that perpetuate poverty. Only through a concerted effort can India tackle the issue of poverty and achieve a more equitable and just society.

Definitely! Poverty in India is a vast and multidimensional problem affecting various aspects of people’s lives. Here are some additional facts and information on poverty in India:

1.Poverty rate: According to the World Bank, more than 134 million people in India live below the poverty line, which is defined as living on less than $1.90 per day. The poverty rate in India has decreased over the years, but it remains a significant challenge, especially in rural areas.

2. Rural-urban divide: Poverty in India is concentrated in rural areas, where access to basic resources is limited. According to a report by the National Sample Survey Office, rural poverty in India is twice that of urban poverty.

3. Education and Poverty: Education is an important factor in reducing poverty, as it helps individuals acquire the necessary skills and knowledge to secure better jobs and improve their standard of living. However, India has a high rate of illiteracy, which perpetuates the cycle of poverty.

4. Health and poverty: Poverty in India is associated with poor health outcomes, especially among children. Malnutrition is a widespread problem, with 34% of children under the age of five being underweight. Lack of access to clean water and sanitation also leads to the spread of diseases such as diarrhoea, cholera and typhoid.

5. Women and poverty: Women are more likely to live in poverty than men in India, mainly due to cultural and social factors that limit their access to education, health care and employment opportunities.

6. Social Safety Net: The Government of India has implemented various social safety net programs to address poverty, such as the Public Distribution System (PDS), which provides subsidized food grains to low-income households.

However, these programs have been criticized for their inefficiency and corruption.

7. Sustainable Development Goals: India is committed to achieving the United Nations’ Sustainable Development Goals (SDGs), which aim to eradicate poverty, reduce inequality and promote sustainable development. To achieve these goals, the government has implemented various initiatives such as the Swachh Bharat Abhiyan, which aims to provide access to clean water and sanitation.

In short, poverty in India is a vast and complex issue that requires a multi-pronged approach to address it. While progress has been made, more needs to be done to achieve a more equitable and just society

Alleviating poverty in India requires a concerted effort by various stakeholders including the government, civil society organisations, the private sector and individuals. Here are some measures that can help reduce poverty in India:

1.Investment in basic resources: Investment in basic resources such as education, health care, water and sanitation is necessary to reduce poverty. Ensuring that all citizens have access to these resources will help break the cycle of poverty.

2. Promotion of employment opportunities: Creating employment opportunities especially in rural areas will help in reducing poverty. The government can implement policies that promote the growth of small and medium-sized enterprises, which are the primary sources of employment in India.

3. Promoting Entrepreneurship: Encouraging entrepreneurship can help reduce poverty by creating more employment opportunities and promoting economic growth. The government can provide support to entrepreneurs through funding, training and other resources.

4. Promoting gender equality: Promoting gender equality will help reduce poverty, as women are more likely to live in poverty than men. The government can implement policies that promote women’s education, employment and participation in decision making.

5. Strengthening social safety net: The government may strengthen social safety net programs such as the National Rural Employment Guarantee Act (NREGA) and the Public Distribution System (PDS) to ensure that benefits reach the intended beneficiaries.

6. Strengthening Governance: Corruption and inefficiency in governance are major barriers to poverty reduction. Government can strengthen governance by implementing policies that promote transparency, accountability and the rule of law.

7. Promote sustainable development: Promoting sustainable development can help reduce poverty in the long run. The government can implement policies that promote sustainable agriculture, renewable energy and environmental protection.

In conclusion, reducing poverty in India requires a multi-pronged approach involving various stakeholders. Ensuring access to basic resources, promoting employment and entrepreneurship, promoting gender equality, strengthening social safety nets, strengthening governance and promoting sustainable development are some of the measures that can do help reduce poverty in India.

Poverty in India is a widespread issue that affects a significant portion of the population. Despite economic growth in recent years, a large proportion of the population still lives in poverty, with inadequate access to basic necessities such as food, shelter and health care. Poverty in India is a complex problem caused by various factors such as caste discrimination, lack of education, unemployment and inadequate infrastructure.

Caste discrimination is one of the major causes of poverty in India. The caste system has existed in India for centuries and is deeply rooted in the social fabric of the country. People from lower castes are often discriminated against and denied access to basic resources and opportunities. This often leads to a cycle of poverty that is difficult to break.

Lack of education is another factor that contributes to poverty in India. Without access to education, people are unable to acquire the skills necessary to secure well-paying jobs. This keeps them stuck in low paying jobs with little hope of upward mobility. Apart from this, lack of education also leads to lack of awareness about basic health and hygiene practices, which leads to more diseases.

Unemployment is also an important contributor to poverty in India. Despite the government’s efforts to create jobs, the unemployment rate remains high, especially among the youth. This leads to a reduction in income, making it difficult for people to afford basic needs such as food, shelter and health care.

Inadequate infrastructure is another factor that increases poverty in India. Poor road network, inadequate health facilities and lack of access to safe drinking water and sanitation facilities are some of the basic infrastructure problems that affect people living in poverty. These problems make it difficult for people to access basic necessities and increase their vulnerability to diseases and other health problems.

Poverty in India is a complex problem that requires a multidimensional solution. Addressing issues such as caste discrimination, lack of education, unemployment and inadequate infrastructure can go a long way in reducing poverty in India. Additionally, the government needs to focus on creating more jobs and providing a better social safety net for those living in poverty. Only by adopting a comprehensive approach to reducing poverty can India hope to lift its citizens out of poverty and move towards a better future and their vulnerability to diseases and other health problems.

In conclusion, poverty in India is a complex problem that requires a multi-pronged solution. Addressing issues such as caste discrimination, lack of education, unemployment and inadequate infrastructure can go a long way in reducing poverty in India. The government needs to focus on creating more jobs and providing a better social safety net for those living in poverty. Only by adopting a comprehensive approach to poverty reduction can India hope to lift its citizens out of poverty and move towards a better future.

Essay on Poverty in India 300 words

Introduction:

Poverty is a multifaceted issue that has plagued India for centuries. Despite remarkable economic growth and development in recent decades, a significant portion of India’s population continues to grapple with poverty. This essay aims to shed light on the persistent problem of poverty in India, its causes, consequences, and potential solutions.

Income Inequality: Income inequality is a major driver of poverty in India. The rich-poor divide is stark, with a small elite accumulating enormous wealth while a large section of the population struggles to make ends meet.
Unemployment: High levels of unemployment, particularly in rural areas, contribute to poverty. Lack of access to quality education and skills training perpetuates this problem.
Agricultural Dependence: A significant portion of the Indian population relies on agriculture for their livelihoods. Fluctuating crop yields, inadequate infrastructure, and lack of modern farming techniques make agriculture a precarious source of income.
Social Factors: Caste-based discrimination and social exclusion continue to marginalize certain groups, making it difficult for them to escape the cycle of poverty.
Healthcare: Poverty leads to inadequate access to healthcare, resulting in higher mortality rates and increased susceptibility to diseases.
Education: Impoverished families often cannot afford education for their children, perpetuating a cycle of illiteracy and limited opportunities.
Malnutrition: Poverty contributes to malnutrition, affecting physical and cognitive development, particularly in children.
Crime and Social Unrest: High levels of poverty can foster crime and social unrest, as individuals may resort to illegal means for survival.
Education and Skill Development: Investing in quality education and skill development programs can empower individuals to break free from the cycle of poverty.
Rural Development: Improving infrastructure, agricultural techniques, and providing alternative livelihood options in rural areas can alleviate poverty.
Social Welfare Programs: Expanding and improving social welfare programs, such as food subsidies, healthcare access, and direct cash transfers, can provide immediate relief to those in need.
Reducing Income Inequality: Implementing progressive taxation and wealth redistribution policies can help bridge the income gap.
Addressing Social Discrimination: Stricter enforcement of anti-discrimination laws and promoting social inclusion can reduce the impact of caste-based discrimination.

Conclusion:

Poverty remains a formidable challenge in India, affecting millions of people across the country. To eradicate poverty, it is essential to address its root causes, including income inequality, lack of education, and unemployment. A multi-pronged approach that combines economic development with social welfare programs and efforts to reduce discrimination is crucial to uplift the impoverished sections of society. Only through sustained efforts can India hope to overcome the scourge of poverty and provide a better future for all its citizens.

India, a country known for its rich cultural heritage and economic potential, also grapples with a severe and persistent issue – poverty. With a population of over 1.3 billion, India is home to one-third of the world’s poor. Poverty in India is a complex problem that has deep-rooted causes and far-reaching consequences.

One of the primary causes of poverty in India is the vast income inequality. While India has witnessed significant economic growth over the past few decades, this growth has not been inclusive. A small section of the population has reaped the benefits of economic progress, leaving a large majority of people behind. This inequality is exacerbated by factors such as lack of access to education, healthcare and job opportunities, especially in rural areas.

Furthermore, India’s high population density and limited resources make poverty a persistent challenge. The lack of basic infrastructure, inadequate sanitation facilities and unreliable access to clean drinking water further perpetuate poverty cycles.

Poverty in India has multifaceted consequences, affecting not only the economic well-being of individuals but also their health, education and overall quality of life. It also hinders the country’s overall development and social progress.

Addressing poverty in India requires a comprehensive approach that includes equitable economic policies, improved access to education and healthcare, rural development initiatives and social safety nets. Empowering marginalized communities, investing in skill development and promoting job creation can help break the cycle of poverty.

In conclusion, poverty remains a pressing issue in India, impacting millions of lives. It is essential for the government, civil society and international organizations to work collaboratively to address the root causes of poverty and uplift the disadvantaged populations, ensuring a brighter and more equitable future for all Indians.

Poverty in India remains a pressing issue with multifaceted challenges. Despite economic growth, a significant portion of the population still lives below the poverty line. Factors contributing to this include unequal distribution of wealth, limited access to quality education and healthcare, and a lack of employment opportunities, especially in rural areas. Additionally, social disparities, such as caste and gender discrimination, exacerbate the problem. Addressing poverty requires comprehensive strategies encompassing economic reforms, social programs, and inclusive development initiatives. By tackling these root causes, India can strive towards a more equitable society, improving the lives of millions and fostering sustainable growth.

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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.

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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.

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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.

Publisher's Disclaimer: This is a PDF file of an unedited manuscript that has been accepted for publication. As a service to our customers we are providing this early version of the manuscript. The manuscript will undergo copyediting, typesetting, and review of the resulting proof before it is published in its final citable form. Please note that during the production process errors may be discovered which could affect the content, and all legal disclaimers that apply to the journal pertain.

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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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 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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Main Causes of Poverty in India

(i) Heavy pressure of population:

Population has been rising in India at a rapid speed. This rise is mainly due to fall in death rate and more birth rate.

India’s population was 84.63 crores in 1991 and became 102.87 crores in 2001. This pressure of population proves hindrance in the way of economic development.

(ii) Unemployment and under employment:

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Due to continuous rise in population, there is chronic unemployment and under employment in India. There is educated unemployment and disguised unemployment. Poverty is just the reflection of unemployment.

(iii) Capital Deficiency:

Capital is needed for setting up industry, transport and other projects. Shortage of capital creates hurdles in development.

(iv) Under-developed economy:

The Indian economy is under developed due to low rate of growth. It is the main cause of poverty.

(v) Increase in Price:

The steep rise in prices has affected the poor badly. They have become more poor.

(vi) Net National Income:

The net national income is quite low as compared to size of population. Low per capita income proves its poverty. The per capita income in 2003-04 was Rs. 20989 which proves India is one of the poorest nations.

(vii) Rural Economy:

Indian economy is rural economy. Indian agriculture is backward. It has great pressure of population. Income in agriculture is low and disguised unemployment is more in agriculture.

(viii) Lack of Skilled Labour:

In India, unskilled labour is in abundant supply but skilled labour is less due to insufficient industrial education and training.

(ix) Deficiency of efficient Entrepreneurs:

For industrial development, able and efficient entrepreneurs are needed. In India, there is shortage of efficient entrepreneurs. Less industrial development is a major cause of poverty.

(x) Lack of proper Industrialisation:

Industrially, India is a backward state. 3% of total working population is engaged in industry. So industrial backwardness is major cause of poverty.

(xi) Low rate of growth:

The growth rate of the economy has been 3.7% and growth rate of population has been 1.8%. So compared to population, per capita growth rate of economy has been very low. It is the main cause of poverty.

(xii) Outdated Social institutions:

The social structure of our country is full of outdated traditions and customs like caste system, laws of inheritance and succession. These hamper the growth of economy.

(xiii) Improper use of Natural Resources:

India has large natural resources like iron, coal, manganese, mica etc. It has perennial flowing rivers that can generate hydro electricity. Man power is abundant. But these sources are not put in proper use.

(xiv) Lack of Infrastructure:

The means of transport and communication have not been properly developed. The road transport is inadequate and railway is quite less. Due to lack of proper development of road and rail transport, agricultural marketing is defective. Industries do not get power supply and raw materials in time and finished goods are not properly marketed.

Suggestions for Removal of Poverty from India
Main Causes of Unemployment in India
India’s Five Year Plans (Frequently Asked Questions)

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Essay on Poverty in India – 2 Essays

Category: Essays and Paragraphs On July 3, 2019 By Various Contributors

Poverty in India- Essay 1.

Poverty basically means a condition where a person does not have the amenities or money to provide for basic needs. The basic needs are food , clothes , medicine, and shelter . Poverty also doesn’t possess meaning to just one thing. There are different areas of poverty.

It is one of the bigger challenges in many developing countries across the world, including India. The government policies are usually focused on alleviating poverty and eventually eradicating it.

Causes of Poverty

There are various causes of poverty in India . They range from a person being unable to have the means to generate money for themselves leading to them not being able to buy the basic amenities needed. There are instances where infants are born then discarded and they start to fend for themselves from an early age, and that might result in them not making any headway in life and leaving them in poverty .

Effects of poverty

Poverty leads to bad health. Poverty is a major factor of bad health because people below the poverty line cannot even have access to Healthcare because they can’t afford it.

Also, as there are advancements in society, the cost of products is on the rise, and poor people cannot afford them especially food items leading to hunger and starvation. There have been some instances of food riot in some countries because of increase in prices of food.

Poverty by itself means the inability of that proportion of the population is sustaining hardships and deprivation. Malnutrition gives rise to many diseases, and a high incidence of poverty brings down the health profile of an area.

Education, while by itself does not guarantee freedom from poverty, can certainly provide a better chance to step out of it. The government can help provide training to the less educated to adapt to some productive trade. There should be increased incentives for people who take any effort towards financial freedom. Short term loan to engage in properly investigated financial activities should be made easily available.

Attempts are being made to reduce and eliminate poverty as establishments are being created to provide for the less privileged people. It is indeed an unpleasant state to be in. Individuals and Governments must come together to find ways to find better solutions towards alleviating it.

By Teamwork (2019)

Short Essay on Poverty in India – 2

Poverty is one of the biggest problems that the country is having not from a few years but from the time of country’s existence. People in various communities and religions suffer a lot because they don’t get their deserved jobs and due to that reason, they don’t get enough money to feed their families. The government has taken a lot of steps to make sure that poverty in India gets decreased.

If a survey gets organized at the current time, it will get noticed that a large percentage of people belong to the community which is very poor.

Here are some probable solutions to enhance the lifestyle of all the poor people in the country:

The education system of India should get organized in such a way that all the rich and the poor people should study in the same manner and due to the lack of money, the poor people should not lag behind. Some special schools and colleges should get open for the underprivileged to make sure that they also get taught what all the other categories do get taught.
A lot of new factories and industries should get open in the country which will create more jobs and hence all the poor people who are well educated, can get to work easily by doing jobs at such factories or any other industries.
The poor people should get taught about opening various kinds of small level businesses. It is very visible that people from various villages are doing their best to open their small businesses and they are earning quite well from it. For example, if a tailor who has the talent to sew any kind of material, opens a shop and markets about I well in the village and other nearby areas, he will surely get more income than he could ever desire.
All the upper-grade categories have the benefit of a lot of things in the country. For example, there isn’t any electricity issue in most of the big houses; however, if you go to any village, you will find out that a lot of houses don’t even have proper electricity to study or prepare for other things. The upper-grade people should try to help the people from lower grade in every way possible so that the country should start getting called a developed instead of a developing country.
Educating people is the key to success for a lot of problems and if we can educate all the poor people about how they can earn money by educating themselves or by learning new skills etc. they will surely be able to earn more money than they have ever earned before.

These were a few key points that should be taken care of by the government to vanish the poverty in India. Poor people try their best to become rich, but they do not get their desired resources due to which they lag behind.

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The Causes of Poverty in India!

The causes of poverty in India are mainly high population growth, slow job growth, slow economic growth, chronic unemployment, natural calamities, unequal distribution of wealth and rampant corruption. The ever-increasing population is the main cause of many ills of Indian society.

Religious attitude, child marriages, preference for male child, joint family system, illiteracy and to some extent the agricultural economy are the main causes of population increase. The growth of population has a direct effect on the standards of living of the people.

There is a relationship between poverty and age structure of the society. The older we are, the more difficult it is to obtain employment. Older people, particularly those over 60 years of age, are often without adequate savings and have to depend on their children for economic support.

Poverty is also related with the size of family. Many large families (having more children) than small ones are poor. This is even truer if the head of the family is a female. The larger the family, the lower the per capita income and the standard of living. Everywhere we see poverty and large families going hand in hand. Those least fit to carry on the race is increasing most rapidly.

The educational level of the people also contributes to poverty. Functionally illiterates who have meagre education and lack job skills do not find employment and thus they are forced to remain poor. It is sometimes said that poor are poor because they are uneducated.

Poverty is also one of the main determinants of health. The greatest impediment to better health is the lack of adequate income. If people can get employment and good incomes, they would secure better health for themselves.

In India, besides general demographic factors (age structure, family size, educational level etc.), the factors of casteism, communalism, fatalism, regionalism, discrimination, prejudices also affect poverty indirectly by impending the employment opportunities.

People still stick to their traditional occupations, even if it is not gainful and do not want to leave their place of origin. The feeling of casteism and communalism also sometimes put hindrance in providing jobs to the members of other castes and religion.

Recently, the sentiments of regionalism have driven people from Assam, and other North-East provinces and Maharashtra due to upsurge of regional agitations. Not only these factors, Indian people are prone to spend large amount of money on (unproductive) social ceremonies like marriage (dowry, pomp and show), death feast, religious rituals, etc., even at the cost of incurring heavy debt, which ultimately leads them towards the evil of poverty.

It is argued that belief in the Hindu concept of rebirth and other world- lines is an important contributing factor of poverty in India. According to this philosophy, suffering of all kind including poverty flows from deeds of the past life and is the God’s justice. It is only means of salvation.

Amelioration of suffering is tantamount to interference with the spiritual system. Therefore, the wholesale acceptance of poverty and misery by masses; the parading of poverty and its elevation to virtue.

A Hindu attaches more importance to the world to come than to this world. He believes the poverty of this life is a boon in disguise to accomplish and accumulate good deeds for the other world. However, this explanation of the cause of poverty is weakening with the spread of education.

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Poverty in India Essay for Students and Childern

Poverty in India Essay: Poverty is when you lack basic necessities like food, shelter, and clothing. Check Poverty in India Essay in 800, 500 and 250 words

October 10, 2023

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Poverty in India Essay: Poverty means not having enough money to afford basic things like a home, healthcare, and education. It’s a tough situation where people struggle to meet their basic needs because they lack money. This essay explains what poverty is, why it happens, and what is being done to fight it in India. It’s helpful for students who want to write good essays and do well in exams.

Poverty in India Essay 800 Words

Below we are covering Poverty in India Essay in 800 Words.

Poverty is the condition where a person lacks enough money to meet their basic needs, such as food and shelter. In India, poverty is becoming more widespread, particularly in urban areas due to the increasing population. Many people live on the brink of poverty, especially in rural regions, where there are numerous uneducated and unemployed individuals.

People in poverty struggle to afford proper food and often have no homes, forcing them to sleep on streets or sidewalks. This situation leads to a growing demand for food, money, and shelter, but unfortunately, poverty continues to increase due to the scarcity of these resources. This wealth gap between the rich and the poor widens, making it challenging to reduce poverty. The consequences of poverty are numerous and include inadequate housing, illiteracy, a rise in child labor and unemployment, and poor hygiene.

Because of these challenges, impoverished individuals cannot afford nutritious meals, decent clothing, or a quality education simply because they lack the necessary funds.

Understanding Poverty in India

Poverty in India is a complex issue with various dimensions. It is not merely about inadequate income but encompasses a lack of access to basic necessities such as food, clean water, education, healthcare, and sanitation. The Multidimensional Poverty Index (MPI) developed by the United Nations Development Programme (UNDP) highlights the multi-dimensional nature of poverty in India.

Causes of Poverty

India’s population growth, while considered a demographic dividend in certain aspects, has placed substantial pressure on the country’s resources and infrastructure, creating formidable challenges in ensuring adequate provisions for all its citizens. Economic inequality exacerbates the issue, with a considerable portion of the population enjoying substantial economic prosperity while a significant majority grapples with financial instability.

Moreover, the prevalence of unemployment and underemployment, particularly in the informal sector, exacerbates poverty levels by limiting income-earning opportunities for a substantial portion of the population. Additionally, the scarcity of accessible quality education further perpetuates the cycle of poverty, as it constrains individuals’ capacity to secure well-paying jobs and break free from the clutches of economic hardship.

Inadequate healthcare infrastructure and a lack of affordable healthcare services compound these issues, contributing to the persistence of poverty, as health-related problems often result in both reduced income and heightened expenses. Furthermore, the pronounced disparities between rural and urban areas, encompassing disparities in infrastructure, educational access, and employment prospects, significantly contribute to the prevalence of poverty in rural regions, deepening the rural-urban divide and amplifying socioeconomic disparities across the nation.

The Problems Poverty Creates

Malnutrition is a pressing concern intricately linked with poverty in India. This dire situation often results in inadequate nutrition, thereby precipitating issues like stunted growth and developmental impediments, with children being especially vulnerable to its detrimental effects.

Furthermore, the adverse impact of poverty is acutely felt in the realm of education, where limited access to quality learning opportunities becomes a pervasive impediment. This restriction not only hampers personal growth but also undermines the potential for professional advancement, perpetuating the cycle of poverty for many individuals.

Moreover, the challenges posed by subpar healthcare infrastructure and unsatisfactory sanitation conditions disproportionately afflict impoverished communities. This unfortunate reality translates into elevated morbidity and mortality rates, compounding the already dire circumstances of those living in poverty.

Additionally, poverty acts as a catalyst for social inequality, further accentuating the divide between the privileged and the marginalized. This growing chasm between the haves and the have-nots not only fosters disparities in wealth and access but also engenders social unrest and instability, posing a formidable challenge to societal harmony.

Furthermore, poverty in India has a regrettably enduring quality, often taking on the form of generational poverty. This means that the limited access to opportunities for improvement faced by one generation frequently extends its grip to the next, creating a cycle of impoverishment that is difficult to break, unless comprehensive measures are undertaken to address its underlying causes.

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Solutions to Remove Poverty

Investment in education and skill development initiatives holds the potential to empower individuals, equipping them with the knowledge and capabilities needed to access improved employment prospects and elevate their socioeconomic status.

Moreover, the government’s commitment to job creation, particularly in rural regions, through targeted initiatives can play a pivotal role in mitigating the pervasive challenges of unemployment and underemployment, offering hope to those seeking livelihood opportunities.

Furthermore, the expansion of social safety net programs, encompassing essential provisions such as food subsidies, healthcare access, and unemployment benefits, can serve as a critical safety cushion for marginalized and economically vulnerable populations, ameliorating their struggles and enhancing their overall well-being.

In addition, fostering rural development via dedicated efforts geared toward enhancing infrastructure, which includes the provision of clean water and sanitation facilities, can bridge the rural-urban gap by improving living conditions and boosting economic opportunities in traditionally underserved areas.

Similarly, instituting policies that prioritize progressive taxation and advocate for equitable wealth distribution is essential in addressing the issue of economic inequality, effectively reducing the wealth gap and promoting a fairer, more just society.

Lastly, the promotion of women’s empowerment, through the facilitation of educational and employment opportunities, stands as a potent strategy to combat poverty. This approach not only enhances women’s personal and financial autonomy but also contributes significantly to overall poverty reduction efforts.

Poverty in India is a big problem that has been around for a long time, and it causes many problems. To solve it, we need to use different ways and ideas. India has made progress, but we need to keep working hard, have good leadership, and make fair rules to help many people escape poverty and make society fairer. It’s not just the right thing to do; it’s also essential for India’s future growth and peace.

Poverty in India Essay 500 Words

Below we are covering Poverty in India Essay in 500 Words.

Poverty remains a daunting challenge in India, despite its remarkable economic growth. This essay explores the causes, consequences, and potential solutions to poverty in India essay in 500 words.

Causes of Poverty

Several factors contribute to the persistence of poverty in India. Population growth, often considered a demographic dividend, exerts immense pressure on resources and infrastructure. Economic inequality widens the gap between the rich and poor, while unemployment and underemployment limit income opportunities. Inadequate access to quality education restricts job prospects, especially in rural areas. Additionally, the lack of affordable healthcare services amplifies the financial burden on impoverished individuals. Rural-urban disparities in infrastructure and opportunities further deepen the problem.

Consequences of Poverty

Poverty in India manifests in various detrimental ways. Malnutrition is a pressing concern, particularly affecting children, leading to stunted growth and developmental challenges. Limited access to quality education hampers personal growth and economic mobility. Subpar healthcare infrastructure and sanitation conditions result in higher morbidity and mortality rates among impoverished communities. Social inequality widens, fostering disparities in wealth and access while fueling social unrest. The intergenerational nature of poverty perpetuates its grip, making it challenging to break free from its cycle.

Solutions to Remove Poverty

Addressing poverty in India requires a multifaceted approach. Investment in education and skill development initiatives can empower individuals, enabling them to access better job opportunities and improve their socioeconomic status. The government’s commitment to job creation, particularly in rural areas, is vital for alleviating unemployment and underemployment.

Expanding social safety net programs, including food subsidies, healthcare access, and unemployment benefits, serves as a critical safety cushion for marginalized populations. Rural development efforts, including infrastructure improvements, can bridge the rural-urban gap and enhance economic opportunities in underserved areas.

Implementing policies that promote progressive taxation and equitable wealth distribution can reduce economic inequality and foster a fairer society. Additionally, empowering women through education and employment contributes significantly to poverty reduction efforts.

Conclusion

Poverty in India remains a persistent challenge, but it is not insurmountable. Addressing poverty requires a concerted effort, including investment in education, job creation, social safety nets, rural development, and equitable policies. By tackling poverty comprehensively, India can work toward a fairer and more prosperous future for all its citizens.

Poverty in India Essay 250 Words

Below we are covering Poverty in India Essay in 250 Words.

Poverty is an enduring issue in India, coexisting alongside its economic growth. It signifies the inability to access basic necessities due to financial constraints. This Poverty in India Essay in 250 word covering poverty causes, consequences, and solutions.

Population Growth: Rapid population growth strains resources, making it hard to provide for all.

Economic Inequality: Uneven wealth distribution widens the gap between rich and poor.

Unemployment: High unemployment and underemployment rates limit income opportunities.

Education Gap: Limited access to quality education restricts job prospects, particularly in rural areas.

Healthcare Access: Lack of affordable healthcare leads to reduced income and increased expenses.

R ural-Urban Disparities: Disparities in infrastructure, education, and jobs deepen poverty.

Consequences

Malnutrition: Particularly among children, leading to stunted growth and developmental challenges.

Limited Education: Restricts personal growth and economic mobility.

Health Issues: Subpar healthcare and sanitation lead to higher morbidity and mortality.

Social Inequality: Amplifies wealth and access disparities, potentially leading to social unrest.

Education and Skills: Invest in education and vocational training to enhance employability.

Job Creation: Government-led job initiatives, especially in rural areas, can reduce unemployment.

Social Safety Nets: Expand food subsidies and healthcare access for marginalized populations.

Rural Development: Bridge the rural-urban gap through development and infrastructure investments.

Equitable Policies: Implement progressive taxation and wealth distribution policies.

Women’s Empowerment: Promote women’s education and employment for poverty reduction.

Poverty persists in India despite economic growth. Its causes include population growth, economic inequality, unemployment, limited education, healthcare access, and rural-urban disparities. Consequences range from malnutrition to social inequality. Poverty need not be a permanent feature of India’s landscape, and determined efforts can lead to a brighter and more inclusive future.

Poverty in India Essay FAQs

Poverty in India refers to a condition where individuals lack the financial means to meet basic necessities like food, shelter, education, and healthcare.

Urban poverty in India is increasing due to the rising population in cities, which strains resources and job opportunities, leading to more people living on the brink of poverty.

Consequences of poverty in India include inadequate housing, illiteracy, child labor, unemployment, poor hygiene, malnutrition, and a widening wealth gap.

The MPI, developed by the United Nations Development Programme (UNDP), measures poverty in India by considering various dimensions, including income, access to food, clean water, education, healthcare, and sanitation.

Causes of poverty in India include population growth, economic inequality, unemployment, limited access to quality education, inadequate healthcare infrastructure, and rural-urban disparities.

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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.

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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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Essay On Poverty in India: Causes, Effects and Solutions
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.
Poverty in India Essay for Students and Children
FAQs about Poverty in India Essay. Q.1 List some ways to end poverty in India. A.1 Some ways to end poverty in India are: Develop a national poverty reduction plan. Equal access to healthcare and education. Sanitation facility. Food, water, shelter, and clothing facility. Enhance economic growth with targeted action.
Essay on Poverty in India
The Causes of Poverty. Poverty in India can be attributed to a myriad of interconnected factors. First, the country's rapid population growth has put immense pressure on its resources, exacerbating poverty. Second, the lack of access to quality education and healthcare, particularly in rural areas, has perpetuated a cycle of poverty.
Understanding Poverty in India: Causes, Estimation, and Challenges
Discover the complexities of poverty in India, from its causes to estimation methodologies. Learn about the persistent issues that hinder progress and the efforts made to reduce poverty. ... Now, candidates have to choose only one optional subject for the UPSC Mains, which has two papers of 250 marks each. One of the compelling choices for many ...
Main Causes of Poverty in India
This article gives you an idea about the main causes of poverty in India. Latest on Causes of Poverty - Pew Research Center, using World Bank data, has estimated that the number of poor in India (with income of $2 per day or less in purchasing power parity) has more than doubled from 60 million to 134 million in just a year because of the ...
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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. In 2020, the number increased by 75 million. Poor: People with incomes of USD 2 or less a day.
PDF A Comprehensive Analysis of Poverty in India
which form the backbone of all poverty analysis in India. In Section 3, we discuss the rising discrepancy between averageas re expenditures ported by the NSSO surveys and by the National Accounts Statistics (NAS) of the Central Statistical Office (CSO). In Section 4, we describe in detail the evolution of official poverty lines in India while in
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.
Poverty in India, Types, Causes & Latest Updates
We shall go into great detail on the causes of poverty in India in this essay. Poverty levels below 5% in India. According to NITI Aayog's CEO, less than 5% of Indians are now below the poverty line, with extreme destitution nearly eradicated, based on the Household Consumption Expenditure Survey. Rural incomes are rising faster than urban ...
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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 ...
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This article on the Main Causes of Poverty in India will help you to prepare for the Prelims and the Mains paper including the essay paper for the UPSC IAS/IPS exam. This article on Testbook will discuss in a detailed way the background of poverty in India, its causes, phases, impact, and significance, which will be helpful for UPSC exam ...
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500 Words Essay on Causes of Poverty in India Introduction. India, despite being one of the fastest-growing economies in the world, grapples with the persistent issue of poverty. A significant portion of the population still lives under dire conditions. The causes of poverty in India are complex and multi-faceted, spanning from historical ...
Essay on Poverty in india 100, 200, 300, 500 words
1. lack of access to basic resources. Poverty in India is a complex issue for many reasons. One of the primary causes of poverty is lack of access to basic resources such as food, clean water, health care, and education. India is a country with a high population density, and a large proportion of its population lives in rural areas where access ...
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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 ...
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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.
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As per the Rangarajan committee report (2014), the poverty line is estimated as Monthly Per Capita Expenditure of Rs. 1407 in urban areas and Rs. 972 in rural areas. Causes of Poverty in India. Population Explosion: India's population has steadily increased through the years. During the past 45 years, it has risen at a rate of 2.2% per year ...
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Poverty Essay: 500+ Words Poverty in India essay will help students to write an effective essay on the topic. It also provides information on the causes of poverty, how it is measured and steps to be taken to eradicate poverty. ... The other causes of poverty include war, natural disasters, political instability, etc. For example, World War II ...
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Poverty is the main cause of elevated levels of dependence. Poor people tend to depend on their family members or the government to get financial aid. Poverty also leads to hunger and malnutrition. This is due to the inability to afford good food or no food at all. This may contribute to slow development in children.
Main Causes of Poverty in India
(i) Heavy pressure of population: Population has been rising in India at a rapid speed. This rise is mainly due to fall in death rate and more birth rate. India's population was 84.63 crores in 1991 and became 102.87 crores in 2001. This pressure of population proves hindrance in the way of economic development. (ii) Unemployment and under employment: Due to continuous rise in population ...
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Poverty in India- Essay 1. Poverty basically means a condition where a person does not have the amenities or money to provide for basic needs. The basic needs are food, clothes, medicine, and shelter.Poverty also doesn't possess meaning to just one thing. There are different areas of poverty. It is one of the bigger challenges in many developing countries across the world, including India.
The Causes of Poverty in India
The causes of poverty in India are mainly high population growth, slow job growth, slow economic growth, chronic unemployment, natural calamities, unequal distribution of wealth and rampant corruption. The ever-increasing population is the main cause of many ills of Indian society. Religious attitude, child marriages, preference for male child ...
Poverty In India Essay For Students And Childern
Poverty in India Essay 250 Words. Below we are covering Poverty in India Essay in 250 Words. Poverty is an enduring issue in India, coexisting alongside its economic growth. It signifies the inability to access basic necessities due to financial constraints. This Poverty in India Essay in 250 word covering poverty causes, consequences, and ...
Poverty Essay for Students and Children
500+ Words Essay on Poverty Essay. "Poverty is the worst form of violence". - Mahatma Gandhi. We can define poverty as the condition where the basic needs of a family, like food, shelter, clothing, and education are not fulfilled. It can lead to other problems like poor literacy, unemployment, malnutrition, etc.

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