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Poverty : The greatest challenge faced by the Indian Economy, Class XII (C.B.S.E).


Meaning of poverty.

Who is Poor?

Measures of Poverty; Absolute and relative poverty.

Poverty Line.

Categorizing poor.

Causes of poverty.

Measures to remove poverty.




Growth-Oriented Approach.

Specific alleviation Program.

Meeting the minimum needs program.

Shortcomings of PAPs.

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Poverty : The greatest challenge faced by the Indian Economy, Class XII (C.B.S.E).

  1. 1. Applied Mathematics For Commerce Students Sets Theory Class XI CBSE Current Challenges facing Indian Economy: Poverty Class XII As per CBSE Curriculum
  2. 2. Synopsis 1. Meaning of poverty 2. Who are Poor? 3. Measures of Poverty;Absolute and relative poverty 4. Poverty Line 5. Categorizing poor 6. Causes of poverty 7. Measures to remove poverty 8. Growth Oriented Approach 9. Specific alleviation Program 10. Meeting the minimum needs program 11. Shortcomings of PAPs. Image by: Pinterest.com
  3. 3. Meaning of Poverty • Poverty is the inability to fulfil the minimum requirements of life. • Poverty refers to a state in which an individual is unable to fulfil even the basic necessities of life, that include food, clothing, housing, education and health facilities. Image by: Pinterest.com
  4. 4. Who are Poor? • Anyone who cannot fulfil the basic requirements of life are called poor. Poverty in India is divided on the basis of area: 1. Urban Poor: Includes poor people like push cart vendors, street cobblers, venders. This poverty is observed in urban areas. 2. Rural Poor: Includes landless agricultural labourers. They lack basic literacy and skills. This poverty is observed in rural areas. Image by: Pinterest.com
  5. 5. Measures of Poverty Image by: Pinterest.com Flemish Region • There are two measures to determine the extent of poverty: 1. Absolute Poverty 2. Relative Poverty
  6. 6. Absolute Poverty Image by: Pinterest.com Flemish Region • It refers to a situation when a person is unable to meet the minimum consumption level, that is, the total numbers of people living BPL (Below Poverty Line). • Poverty line refers to that line which expresses per capita average monthly expenditure incurred by the people to satisfy their minimum needs. • In India, nearly 20 % of the country’s population is absolutely poor.
  7. 7. Relative Poverty Image by: Pinterest.com Flemish Region • It is the condition in which people lack the minimum amount of income to maintain the average standard of living in the society they live. • Example; when a household receives less then 50% income then average income. • It is a comparative measure of poverty. It shows the terms of inequality of income within the country. Image by Quora.com
  8. 8. Poverty Line Image by: Pinterest.com Flemish Region • Poverty line suggest the basic recommended nutritional requirement area wise. • The minimum calorie intake of 2400 calories per person per day in rural areas. • The minimum calorie intake of 2100 calories per person per day in urban areas.
  9. 9. Categorizing Poverty Image by: Pinterest.com Flemish Region • Poverty can be categorized as 1. Chronic Poor: People who are always or who are usually poor. Example, casual workers. 2. Transient Poor: People who are churning poor and who regularly move in and out of the poverty. Example, small farmers, seasonal workers. 3. Non-Poor: People who are never poor.
  10. 10. Causes of Poverty Image by: Pinterest.com Flemish Region 1. High population growth rate which leads to fall in per capita availability of goods and services. 2. The existence of unemployment and underemployment in the economy. 3. Poor agricultural infrastructure in terms of lack of proper irrigation. 4. The economic reforms also caused poverty as it increases income inequalities between rich & poor. 5. Lack of adequate vocational training, that is, lack of skilled labor. Image by: bbamantra.com
  11. 11. Measures to Remove Poverty Image by: Pinterest.com Flemish Region • Measures to remove poverty includes: 1. Growth Oriented Approach. 2. Specific Poverty Alleviation Programs. 3. Meeting the minimum needs of the poor.
  12. 12. Measures to Remove Poverty- Growth OrientedApproach Image by: Pinterest.com Flemish Region 1. This approach is based on trickle-down effect, that the effect of economic growth would spread to all sections of the society. 2. The rapid industrial development and transformation of agriculture through green revolution would benefit the underdeveloped and the backward sections of the community. • But this approach was not successful because of high population growth, widening inequality among rich and poor section and due to inefficient administrative set up.
  13. 13. Measures to Remove Poverty- Specific Poverty Alleviation Program Image by: Pinterest.com Flemish Region • This approach focussed on increasing self employment and wage employment programs to remove poverty from the country. The following are the self-employment and wage- employment programs discussed below: 1. Rural Employment Guarantee Program (REGP): This program started on 1st April, 1995 and it aimed at creating self-employment opportunities in rural areas. It was started by Khadi & Village Industries Commission. Financial help in the form of bank loans was given to set up small industries that generate employment.
  14. 14. Measures to Remove Poverty- Specific Poverty Alleviation Program Image by: Pinterest.com Flemish Region 2. Prime Minister Rozgar Yojana (PMRY) : This program started on 15th August, 1993 for educated youth. Its focus was on self-employment. It aimed at providing financial help for agriculture & related activities and helped them to set up enterprises that generate employment.
  15. 15. Measures to Remove Poverty- Specific Poverty Alleviation Program Image by: Pinterest.com Flemish Region 3. Swarna Jayanti Shahari Rozgar Yojana (SJSRY) : This program started on 1st December, 1997 and it aimed at creating employment opportunities for both self-employment and and wage-employment in urban areas. The cost of the program is shared between the centre & the state in the ratio of 75:25.
  16. 16. Measures to Remove Poverty- Specific Poverty Alleviation Program Image by: Pinterest.com Flemish Region 4. Swarna Jayanti Gram Swarozgar Yojana (SJGSY) : This program started in April, 1999. It is a self-employment program. It aims at encouraging micro enterprises and to bring the assisted poor families above the poverty line, through Self-help groups (SHGs). This program encourages people to form SHGs and create self saving habits. Later they can avail loans from bank.
  17. 17. Measures to Remove Poverty- Specific Poverty Alleviation Program Image by: Pinterest.com Flemish Region 5. Sampoorna Grameen Rozgar Yojana (SGRY) : This program started in September,2001. It is a wage-employment program. It aims at providing wage employment to poor unskilled workers in rural areas. This program encourages labor intensive work among rural people who give manual & unskilled services.
  18. 18. Measures to Remove Poverty- Specific Poverty Alleviation Program Image by: Pinterest.com Flemish Region 6. National Rural Employment Guarantee Act, 2005 (NREGA) : This program aims to provide guaranteed wage wage employment to every household. Under this, 1 adult from each household is provided job for a minimum of 100 days in a year. If the government fails to provide job, then the the compensation is paid to the household.
  19. 19. Measures to Remove Poverty- Meeting the minimum needs of the poor Image by: Pinterest.com Flemish Region • This is the third approach to solve the poverty problem by providing the basic amenities to the people. • India was the first in the world to start the provision of the basic needs through its public expenditure on social consumption needs like provision of food grains at subsidised rates, education, health, water supply and sanitation. • The Indian government also assisted elderly people who do not have anyone to take care of them through pensions by National Social Assistance program.
  20. 20. Shortcomings of Poverty Alleviation Programs (PAPs) Image by: Pinterest.com Flemish Region • The following are the major concerns that prevented successful implementation of PAPs : 1. Unequal distribution of land and other assets due to which non-poor people took the advantage of the programs. 2. Insufficient resource allocation as compared to the size of the poverty. 3. Ill-motivated, inadequately trained government officials acted as the hindrance to provide aid to the poor people because of their corrupted behaviour.
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