Poverty is a state or condition in which an individual or group lacks the resources necessary to meet

basic needs and enjoy a decent standard of living. These basic needs include food, shelter, clothing,
healthcare, and education.

It is not merely an economic issue but a complex interplay of social, political, and structural factors
that perpetuate the cycle of deprivation.

Amartya Sen, in his seminal work "Development as Freedom," defines poverty not just as a lack of
income but as a deprivation of basic capabilities. Sen's capability approach emphasizes that poverty
should be understood in terms of the substantive freedoms people lack, such as the ability to lead a
healthy life, access education, and participate fully in societal activities. According to Sen, addressing
poverty requires enhancing individuals' capabilities and opportunities, thereby enabling them to lead
lives they have reason to value

What is poverty?

Poverty is a situation where individuals, households or communities lack the necessary resources to
meet their basic needs for food, shelter, clothing, healthcare, and education.

According to the World Bank, “Poverty is hunger. Poverty is a lack of shelter. Poverty is being sick
and not being able to see a doctor. Poverty is not having access to school and not knowing how to
read. Poverty is not having a job; it is fear for the future, living one day at a time. Poverty is losing a
child to illness brought about by unclean water. Poverty is powerlessness, lack of representation, and
freedom".

What is the status of poverty in India?

 Incidence of poverty:

Year 1947 1973 1993 2011

Poverty rate 80% 55% 36% 21.9%

 According to the MPI report by NITI Aayog in 2021, 25.01% of the population in India was
multidimensionally poor.

 Intensity of poverty: The number of extremely poor in India has decreased by 12.3%
between 2011 and 2019 (World Bank).

 Multidimensional Poverty: India has also shown improvement in multidimensional poverty

rate as below:

 Global Multidimensional Poverty Index (MPI) 2022: 415 million individuals in India were
able to escape multidimensional poverty in the last 15 years between 2005–2006 and 2019–
21, with the incidence of poverty exhibiting a sharp drop from 55.1% to 16.4%.

o 18.7% is classified as vulnerable to multidimensional poverty (260.9 million people in

2020).
  Regional variations: According to National MPI, there are significant regional variations in
poverty rates across states in India.

States with high poverty rates States with low poverty rates

 Bihar: 51.91 %  Kerala: 0.71 %

 Jharkhand: 42.16  Goa: 3.76 %

%
 Sikkim: 3.82
 Uttar Pradesh: %
37.79 %
 Tamil Nadu:
 Madhya Pradesh: 4.89 %
36.65 %
 Punjab: 5.59
 Meghalaya: 32.67 %
%

 What are the distinct characteristics of poverty in India?

Some of the important characteristics of poverty in India are:

 Rural-Urban Divide: Rural areas are generally more impoverished than urban areas. A
significant proportion of India's population is still engaged in agriculture, which is often
characterized by low productivity, low wages, and poor working conditions.

o The poverty ratio was as high as 32.75% in rural areas compared to 8.81% in urban
areas. (NITI Aayog MPI, 2021)

 Unequal distribution of wealth: The gap between the rich and poor in India is vast

o 5% of the population own more than 60% of the country’s wealth (Oxfam report
2022)

 Lack of education: Poverty is closely linked to lack of education in India. The literacy rate in
rural areas is lower than in urban areas, and illiteracy often leads to limited job opportunities
and low wages.

 Health problems: Poverty is associated with poor health outcomes in India, including
malnutrition, high infant mortality rates, and a higher prevalence of diseases such as
tuberculosis.

 Caste system: India's caste system still plays a role in poverty, with those from lower castes
often facing discrimination and limited opportunities.

o Scheduled Castes still constitute almost one-fourth of India’s multidimensionally

poor people. (Global MPI 2021)

 Gender Inequality: India also struggles with gender inequality, which can contribute to
poverty among women. Women often face discrimination in education, employment, and
healthcare, which can limit their opportunities and exacerbate poverty.
  Informal Economy: A major portion of India's workforce is employed in the informal sector.
This leads to low wages, poor working conditions, lack of social protections, difficulty in
accessing financial services, etc.

What are the factors contributing to poverty in India?

The following can be some of the reasons leading to poverty in India:

 Population explosion: The rapid growth of the population puts constraints on limited
resources. This leads to people being deprived of basic necessities.

 Lack of Agricultural productivity: Fragmented holdings, use of traditional methods, obsolete

technology, etc., leads to low agricultural productivity. This reduces income levels and pushes
vulnerable sections into poverty.

 Lack of education: It creates a vicious cycle of poverty where a person is not able to afford
basic necessities.

 Lack of employment opportunities: Job opportunities have not kept pace with the
increasing population leading to poverty. Further lack of skilling or low skilling compounds
this.

 Inadequate WASH (Water, Sanitation, and Hygiene) facilities: People living in rural areas,
urban slums, disaster-prone areas, etc., are the most vulnerable and the most affected due
to the lack of WASH facilities leading to poverty.

 Climate change: climate change affects the poor disproportionately due to lack of
information about weather events, lack of access to basic facilities, etc.

 Social factors: Certain sections of society are more vulnerable to poverty due to caste and
class dynamics, traditional structure, etc.

 Low per capita income: India is a developing country with a low per capita income. Many
people in India live on less than $2 a day.

POVERTY DEFINED BY SCHOLARS

1. Income-Based Definition

 Description: Poverty is defined based on a lack of sufficient income to meet basic needs.

 Scholars/Examples:

o Adam Smith: "Poverty is the inability to afford not only the necessities of life but also
what the customs of the country regard as a decent standard of living."

o World Bank: Defines extreme poverty as living on less than $2.15 per day (2022
update).
2. Basic Needs Approach

 Description: Poverty is the inability to meet basic material and social needs such as food,
clothing, housing, education, and healthcare.

 Scholars/Examples:

o David Morris: Proposed the Physical Quality of Life Index (PQLI) to measure poverty
based on literacy, infant mortality, and life expectancy.

o The International Labour Organization (ILO) emphasized poverty as the lack of basic
needs fulfillment.

3. Capability Approach

 Description: Poverty is the lack of freedom to achieve well-being, focusing on the ability to
live a fulfilling life rather than just income levels.

 Scholars/Examples:

o Amartya Sen: Defined poverty as the deprivation of basic capabilities to live a life
one values. He argued that poverty should be understood in terms of capabilities,
such as being healthy, educated, and socially included.

4. Social Exclusion Approach

 Description: Poverty is seen as the result of exclusion from mainstream social, economic,
and political processes.

 Scholars/Examples:

o Peter Townsend: Defined poverty as a state where individuals lack the resources to
participate in the activities and customs of their society.

o He emphasized the concept of relative poverty, which compares an individual’s

standard of living to the societal norm.

5. Absolute Poverty

• Peter Townsend (1979):

Townsend defines poverty as a condition where individuals lack the resources to obtain the types of
diets, participate in activities, and have living conditions and amenities that are customary or widely
approved in the societies to which they belong. This approach emphasizes the inability to meet basic
needs such as food, shelter, and clothing.

• World Bank:
Absolute poverty is often defined in monetary terms, such as living on less than $2.15 a day
(adjusted for purchasing power parity, PPP). This focuses on minimum survival thresholds.

6. Relative Poverty

• Amartya Sen (1981):

Sen emphasizes the capability approach, arguing that poverty should be understood as the
deprivation of basic capabilities rather than merely as low income. It considers what individuals can
or cannot do with the resources available to them, such as being well-nourished or participating in
community life.

• Adam Smith (1776):

Smith highlighted the social aspect of poverty, noting that it involves an inability to afford necessities
that allow individuals to live in dignity and participate in societal norms.

What are the developmental issues which arise due to poverty in India?

High poverty prevalence in India can have a range of consequences like

 Poor health outcomes: Poverty is often linked to poor health outcomes, as individuals and
households living in poverty may lack access to basic healthcare services, clean water, and
sanitation.

o Example: India has the highest number of stunted children in the world, accounting
for nearly a third of the global total. (Global Nutrition Report 2020)

 Limited access to education: Poverty can limit access to education, particularly for girls and
women, which can perpetuate the cycle of poverty across generations.

o Children from poor families often drop out of school to work and earn money.

 High infant mortality rates: Poverty can contribute to high infant mortality rates, as infants
born into poverty may not have access to adequate nutrition and healthcare.

o Example: IMR is 35.2 as per National Family Health Survey 5(2019-21)

 Social exclusion: Poverty can lead to social exclusion, as individuals and households may be
unable to participate fully in social and economic activities.

 Increased crime rates: Poverty can lead to increased crime rates, as individuals may resort to
criminal activity as a means of survival.

 Inadequate housing and sanitation: Lack of access to basic amenities like clean water,
sanitation facilities, and adequate housing among the poor can lead to a range of health
problems, including diarrhea and other water-borne diseases.
  Gender inequality: Poverty in India disproportionately affects women and girls. Girls are
often denied access to education and are more likely to be married off at a young age.
Women are also more likely to work in low-paid and insecure jobs.

 Environmental degradation: Poverty often leads to unsustainable practices, such as overuse

of natural resources and deforestation, which can have a detrimental effect on the
environment.

 Internal migration: Poverty also leads to people migrating from rural areas to urban centers
in search of better economic opportunities. This leads to a rise in the informal sector and the
growth of slums in urban areas.

How is poverty in India related to its demography?

The relationship between demography and poverty is complex. Both reinforce each other creating a
vicious cycle.

Demographic change leading to poverty Poverty leading to demographic change

Rapid population growth leads to Poverty leads to

 Increased competition for resources:  Lack of access to family planning:

leading to poverty and inequality. resulting in high fertility rates and
rapid population growth.
 Pressure on infrastructure: such as
housing, sanitation, and healthcare, etc.  Lack of education and opportunities:
Limiting the ability to make informed
 Higher unemployment rates: Due to
decisions about family planning.
mismatch between job opportunities and
the number of job seekers.  Cultural and social norms:
encouraging large families.

What measures can help to alleviate poverty in India?

 Investing in education: Providing access to education and vocational training can help
individuals acquire the skills and knowledge needed to secure better-paying jobs.

 Promoting economic growth: Fostering economic growth through policies that promote
entrepreneurship, innovation, and investment can create new job opportunities and lift
people out of poverty.

 Providing access to basic services: Providing access to basic services such as healthcare,
clean water, sanitation, and electricity can improve health outcomes, particularly in rural
areas.

 Proper implementation of social protection programs: Accountable and transparent

implementation of social protection programs such as cash transfers, food subsidies,
and public distribution programs can provide a safety net for individuals and households
living in poverty.
  Promoting gender equality: It can help to reduce poverty, as women often face greater
barriers to education, healthcare, and economic opportunities.

 Strengthening agricultural productivity: It can help to reduce poverty in rural areas, where a
large proportion of the population is engaged in agriculture.

 Addressing income inequality: Addressing income inequality through progressive taxation

and other policies can help to reduce poverty and improve social cohesion.

 Encouraging inclusive growth: Encouraging inclusive growth that benefits all sections of
society can help to reduce poverty and promote sustainable development.

 What are the various government initiatives to alleviate poverty in India?

The Poverty Alleviation Programme intends to reduce the rate of poverty in the country by providing
proper access to food, monetary help, and basic amenities to households belonging to below the
poverty line.

The following are some of the anti-poverty initiatives by the government:

 Employment Related

o Integrated Rural Development Programme (IRDP):

o Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA)

o National livelihoods mission

o Pradhan Mantri Kaushal Vikas Yojana

 Food Related

o National Food Security Act, 2013

o Antyodaya Anna Yojana

 Incentives Related

o Pradhan Mantri Awaas Yojana (PMGY)

o Pradhan Mantri Jan-Dhan Yojana (PMJDY)

How has poverty estimation evolved in India?

Poverty estimation in India has evolved in the following ways:

 In the pre-independent era, Dadabhai Naoroji, in his "Poverty and the Un-British Rule in
India" was among the first to estimate poverty in India linked to British rule.

 Later, the National Planning Committee(1938) and the Bombay Plan(1944) formulated their
respective poverty lines.

 The Alagh Committee(1979) developed a poverty line for rural and urban areas based on
nutritional requirements. Also, DT Lakdawala (1993) suggested calculating consumption
 expenditure based on calorie consumption and constructing state-specific poverty lines that
could be regularly updated.

 Tendulkar Committee (2009): The Tendulkar Committee recommended changing monthly

household consumption into consumption expenditure per person per day.

o The national poverty line for 2011-12 was estimated at Rs. 816 per capita per month
for rural areas and Rs. 1,000 per capita per month for urban areas

 Rangarajan Committee (2014): It recommended separate consumption baskets for rural and
urban areas which include food items that ensure recommended calorie, protein & fat intake
and non-food items like clothing, education, health, housing and transport.

o It recommended monthly per capita consumption expenditure of Rs. 972 in rural

areas and Rs. 1407 in urban areas as the poverty line

 Socio-Economic Caste Survey (SECC), 2011: It was based on the committee chaired by Dr. N.
C. Saxena to propose a new methodology for identifying below poverty line households. The
committee recommended a three-fold classification of households: Automatically excluded,
Automatically included and Others

o Government has also being using SECC data for identification of beneficiary
households while implementing its social welfare programmes

 Currently, poverty estimation in India is carried out by NITI Aayog Task force. It uses data
collected by the National Sample Survey Office (Ministry of Statistics and Programme
Implementation (MOSPI)) to calculate the poverty line

 why some states have done better than other states in terms of poverty

Economic Factors

Industrialization and Economic Diversification

 Gujarat: Gujarat's robust industrial base and diversified economy have contributed to its
relatively lower poverty levels. The state's proactive industrial policies, investment in
infrastructure, and business-friendly environment have attracted significant private
investment, leading to job creation and economic growth.

 Maharashtra: Similarly, Maharashtra, with Mumbai as its economic hub, has a diversified
economy encompassing finance, manufacturing, and services. This economic diversification
has provided a wide range of employment opportunities, contributing to poverty reduction.

Agricultural Productivity

 Punjab: The Green Revolution had a profound impact on Punjab, making it one of the most
agriculturally productive states. The use of high-yielding varieties, modern irrigation
techniques, and improved agricultural practices significantly increased crop yields and rural
incomes, reducing poverty in the state.
  Haryana: Haryana also benefited from the Green Revolution, leading to increased
agricultural productivity and rural prosperity. The state's focus on agricultural development
has contributed to its relatively lower poverty levels.

Social Factors

Education and Literacy

 Kerala: Kerala's emphasis on education and literacy has been a key factor in its human
development success. The state's high literacy rates, quality education system, and focus on
female education have empowered its population, leading to better economic and social
outcomes.

 Himachal Pradesh: Himachal Pradesh has also made significant strides in education,
achieving high literacy rates and improving access to quality education. This focus on
education has contributed to the state's progress in reducing poverty.

Healthcare Access

 Tamil Nadu: Tamil Nadu's well-developed healthcare infrastructure and focus on public
health have contributed to its success in improving health outcomes and reducing poverty.
The state's investment in healthcare services, including maternal and child health, has led to
better health indicators.

 Kerala: Kerala's healthcare system, with its emphasis on preventive and primary care, has
resulted in high life expectancy and low infant mortality rates. This focus on health has been
instrumental in the state's overall human development achievements.

Political and Governance Factors

Effective Governance and Policy Implementation

 Tamil Nadu: Tamil Nadu's effective governance and efficient implementation of social
welfare programs have played a crucial role in poverty reduction. The state's commitment to
social welfare, including schemes for food security, housing, and pensions, has improved the
living standards of its population.

 Sikkim: Sikkim's political stability and visionary leadership have driven its development
agenda. The state has successfully implemented various development programs, including
organic farming and sustainable tourism, contributing to poverty reduction and economic
growth.

Corruption and Administrative Efficiency

 Gujarat: Gujarat's relatively lower levels of corruption and efficient administrative machinery
have facilitated effective implementation of development programs. This administrative
efficiency has contributed to the state's economic growth and poverty reduction.

 Himachal Pradesh: Himachal Pradesh has also benefited from relatively low levels of
corruption and effective governance. The state's focus on transparency and accountability
has ensured that development benefits reach the intended beneficiaries.

Structural Factors

Infrastructure Development
  Maharashtra: Maharashtra's well-developed infrastructure, including roads, ports, and
airports, has facilitated economic activities and attracted investment. This infrastructure
development has contributed to the state's economic growth and poverty reduction.

 Gujarat: Gujarat's investment in infrastructure, including industrial zones, ports, and power
supply, has created an enabling environment for businesses and industries, driving economic
growth and reducing poverty.

Land Reforms

 West Bengal: West Bengal's implementation of land reforms in the 1970s, including the
redistribution of land to landless farmers and sharecroppers, has had a significant impact on
rural poverty reduction. These reforms improved agricultural productivity and rural incomes,
contributing to poverty alleviation.

 Kerala: Kerala's land reform measures, which aimed to provide land to the landless and
protect tenant farmers' rights, have also played a role in reducing rural poverty and
improving living standards