Understanding Poverty in India
Poverty line, who is poor, causes, MGNREGS, PDS, Tendulkar committee, MPI.
Understanding Poverty in India
Poverty as a Challenge
What you'll learn
- What poverty is; different ways to define and measure it.
- Poverty line in India — how it is calculated.
- Who are the poor in India — social groups, regions.
- Causes of poverty in India.
- Government anti-poverty programmes.
- Global poverty comparisons.
Key concepts
What is poverty?
Poverty = inability to meet basic needs (food, clothing, shelter, healthcare, education).
Two dimensions:
- Income poverty: earning below a threshold (poverty line).
- Non-income poverty: lack of education, healthcare, clean water, security — even if income is not extremely low.
Relative poverty: being poorer than others in the same society. Absolute poverty: unable to meet minimum survival needs.
Poverty line in India
- Poverty line = minimum income needed to meet basic needs.
- India uses a calorie-based method historically:
- Rural: 2400 calories per person per day.
- Urban: 2100 calories per person per day.
- The Tendulkar Committee (2011) revised this upward, also including spending on health and education.
- Rangarajan Committee (2014): further revised — higher poverty line.
2011–12 estimates (Tendulkar method):
- ~22% of Indians below poverty line (~270 million people).
- By 2020s, government estimates <5% — but debate continues on methodology.
Who are the poor?
| Group | Why disproportionately poor |
|---|---|
| Scheduled Castes (Dalits) | Discrimination, denied land and education historically |
| Scheduled Tribes (Adivasis) | Forest rights taken; displacement from land; remote areas |
| Landless agricultural labourers | No assets; low wages; seasonal work |
| Urban casual workers | Construction, domestic work; no job security |
| Women-headed households | Lower wages; less access to credit and land |
| Migrants | No social support network; exploited |
States with highest poverty: Bihar, Jharkhand, Odisha, Uttar Pradesh, Chhattisgarh. States with lowest poverty: Kerala, Himachal Pradesh, Punjab.
Causes of poverty in India
| Cause | Detail |
|---|---|
| Colonial legacy | British deindustrialisation; land revenue system; drain of wealth → impoverishment |
| Low agricultural productivity | Small landholdings; monsoon dependence; lack of irrigation |
| Rapid population growth | Resources spread over more people |
| Unemployment | Not enough formal jobs; disguised unemployment in agriculture |
| Low literacy | Limits access to better jobs |
| Inequality in land | Land concentrated with few; many landless labourers |
| Social discrimination | Caste and gender prevent access to opportunities |
| Lack of public services | Poor healthcare, education → poverty trap |
India's poverty over time
| Year | Poverty % (approx.) |
|---|---|
| 1973–74 | ~55% |
| 1993–94 | ~36% |
| 2004–05 | ~27% |
| 2011–12 | ~22% |
| 2019–21 (NFHS) | Multidimensional poverty ~25% |
- Long-run decline due to Green Revolution, economic growth, welfare schemes.
- But inequality has grown — rich getting richer faster than poor are getting less poor.
Government anti-poverty programmes
| Programme | What it does |
|---|---|
| MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme) | Guarantees 100 days of wage employment per year to rural households; minimum wage |
| PM Jan Dhan Yojana | Bank accounts for all; financial inclusion |
| PM Awas Yojana | Affordable housing for poor (rural + urban) |
| Antyodaya Anna Yojana | Cheapest food (1–2 ₹/kg) for the poorest of the poor |
| PDS (Public Distribution System) | Subsidised food grains through ration shops |
| Pradhan Mantri Kaushal Vikas Yojana | Skill training for employment |
| PMJAY (Ayushman Bharat) | Health insurance ₹5 lakh/year for 50 crore poorest |
Global poverty
- World Bank poverty line: $2.15/day (2022 revision, 2017 PPP).
- ~700 million people globally below this line (~9% of world population).
- Largest numbers of poor: Sub-Saharan Africa, South Asia.
- India had the world's largest number of poor people (absolute count) but share declining.
NITI Aayog Multidimensional Poverty Index (MPI)
- Goes beyond income — measures deprivation in health, education, living standards (12 indicators).
- India's MPI 2021: 25.01% multidimensionally poor (415 million people).
- Bihar poorest state; Kerala least poor.
Quick check
- What is the poverty line? How does India calculate it?
- Which social groups are disproportionately poor in India? Why?
- Name three causes of poverty in India.
- What does MGNREGS guarantee? Why is it significant?
- How has India's poverty rate changed since 1973–74?
Open the Practice tab for graded questions on Poverty as a Challenge.
Key Takeaways (TL;DR)
- What you'll learn
- Key concepts
- Quick check
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