What Is Poverty In India?
Poverty In India gratest problem or headache for Indian economy. Poverty is the inability to get the minimum consumption requirement for life, health and efficiency. Poverty is the inability to fulfill even the basic requirements of life. These minimum requirements include food, clothing, housing, education and health requirements.
It is difficult to increase production to avoid poverty because of bad health and lack of efficiency. In this way poverty and fall productivity become interdependent.
Poverty adversely affects one’s health and skill hence the capacity to earn declines or decreases.
The term poverty can be defined in two ways:
1.Absolute Poverty
2.Relative Poverty
What is Absolute Poverty?
Absolute poverty refers to the measure of poverty keeping in mind the economic condition of a country. We shall study the absolute poverty in India in both the calories and minimum level of for capita consumption expenditure.
i.Calorie Criteria
The energy that an individual gets from the food that he eats everyday is measured in terms of calories. In india planning commission is of the opinion that an individual in rural area must get 2400 calories and in urban area 2100 calories per day. Those getting less than this minimum level will be treated as living below the poverty line.
ii.Minimum Consumption Expenditure Criteria
An export committee headed by PM economic adviser Mr. Suresh Tendulkar was appointed by the planning commission to determining poverty line adopted minimum consumption expenditure criteria. As per this commitment, those people will be treated as living below the poverty line whose per capita consumption expenditure at 2011-12 prices is below rupees 816 per capita per month in rural areas and Rs 1000 per capita per month in urban areas.
2.What is Relative Poverty?
Relative Poverty refers to the poverty on the basis of comparison of per capita income of different countries. The countries whose per capita income is less in comparison to other countries are treated as relatively poor nations. In poor nations the part of the population which is living at the bottom per income is less in unable to fulfill the basic requirement of life.
Diagram
The comparison concludes that India is a poor nation. India have 79th rank in the world.
Causes Of Poverty In India
In 1870 the economist Dr Dadabhai Naorje mentioned causes for poverty in india. Poverty is the main economic problem of India since independence. The main causes are discussed below.
i.Heavy Pressure Of Population
India’s population has been increasing very rapidly. In 2011 population size was 121 Cr and the growth rate of population was 1.3%. This Pressure of population is a measure of obstacles in economic development. So, the per capita income per capita land, per capita availability of social services and food grain has been very less.
ii.Increases Prices
In India prices show increasing tendency in 2016-17 the average rising prices has been 3.90% rise in prices has the worst effect on poor people. They don’t meet their basic needs which expand poverty.
iii.Less national income & Slow economic growth
As compared to population growth, the national income of India is very low. Per capita income is also low national income and PCI is the cause of poverty.
iv.Chronic unemployment & Under employment
Problem of unemployment is the cause of poverty. In India unemployment is very serious. In 2011-12 the number of unemployment was around 2.45 crore as in December 2015 4.83 crore educated unemployment were registered.
v. Unequal distribution of income
India is a rich country from the point of view of natural resources and valuable minerals like iron, coal, magazines etc available in large quantities. There are different kinds of soil which are capable of growing a large variety of crops. But these Resources haven’t been properly exploited. In India which leads to poverty.
vi.Natural Calamities
The Indian economy is mainly focused on agriculture. Inadequate or expensive monsoon has a deep impact on Indian agriculture. Floods or droughts are very common in india. Natural calamities affect the segments very badly.
vii.Lack of Technical Education
In India there is more spread of general education than vocational or technical education. After completing their general education the students don’t get jobs, don’t get such skills to start self employment so that there is low income.
viii.Lack Of Proper Industrialised
India has a backward industrial structure. We have to depend on foreign countries with regards to goods like oil, soap, leather, cloth etc from foreign industries. It has less to do with the national income.
ix.Corruption
Because of corruption the benefits of economic planning, social welfare etc don’t reach the poor area population. So that poor people suffer because of corruption.
What Is Absolute Poverty?
Absolute poverty refers to the measure of poverty keeping in mind the economic condition of a country. We shall study the absolute poverty in India in both the calories and minimum level of for capita consumption expenditure.
What is Relative Poverty?
Relative Poverty refers to the poverty on the basis of comparison of per capita income of different countries. The countries whose per capita income is less in comparison to other countries are treated as relatively poor nations.
What is Poverty in Economics?
Poverty is the inability to get the minimum consumption requirement for life, health and efficiency. Poverty is the inability to fulfill even the basic requirements of life. These minimum requirements include food, clothing, housing, education and health requirements.
