POVERTY- INDIAN ECONOMY POVERTY Poverty is a socio-economic problem. Poverty means deprivation, malnutrition, illiteracy, ill-health, death and starvation. Poverty is that situation in which an individual fails to earn income sufficient to buy him minimum means of subsistence. Absolute poverty refers to the total number of people living below poverty line. Relative poverty refers to poverty of people in relation to other people, regions or nations. MAGNITUDE AND NATURE OF POVERTY VICIOUS CIRCLE OF POVERTY VICIOUS CIRCLE OF POVERTY( demand side of capital) Under development Low productivity Low real income Low demand, limited size of market Low investment Low capital formation Rapid population growth among the poor Unemployment and indebtedness Low rate of economic development Low education Inflationary pressure POLICIES AND PROGRAMMES TO ALLEVIATE POVERTY

1. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Affiliated Institution of G.G.S.IP.U, Delhi
BBA(G)
INDIAN ECONOMY
17203
By
Reena yadav

2. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
POVERTY
• Poverty is a socio-economic problem.
• Poverty means deprivation, malnutrition,
illiteracy, ill-health, death and starvation.
• Poverty is that situation in which an individual
fails to earn income sufficient to buy him
minimum means of subsistence.
• Absolute poverty refers to the total number of
people living below poverty line.
• Relative poverty refers to poverty of people in
relation to other people, regions or nations.

3. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
MAGNITUDE AND NATURE OF
POVERTY
• When the number of poor is estimated as the
proportion of people below the poverty line, it is
known as ‘Head Count Ratio’.
• The rural poor are mainly landless agricultural
labourers, cultivators with small landholdings,
landowners with small landholdings, landless labourers
engaged in non-agricultural jobs. The urban poor are
mostly those who come from rural areas in search of
better employment opportunities. They are casual
labourers, rickshaw pullers, vendors, etc.
• In India, NSSO compiles data on poverty.

4. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
VICIOUS CIRCLE OF POVERTY
• It is defined as a situation of self-reinforcing
forces in which there are certain factors that are
related in a circular way and result in
continuation of poverty and underdevelopment.
• As Nurkse puts in,”vicious circle of poverty
implies a circular constellation of forces tending
to act and react upon one another in such a way
as to keep a poor country in a state of poverty.

5. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
VICIOUS CIRCLE OF POVERTY
( demand side of capital)
Under
development
Low
productivity
Low real
income
Low demand,
limited size
of market
Low
investment
Low capital
formation

6. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
VICIOUS CIRCLE OF POVERTY
(supply side of capital)
Under
development
Low
productivity
Low real
income
Low savings
Low
investment
Low capital
formation

7. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
CAUSES OF POVERTY
Rapid population
growth among
the poor
Unemployment
and
indebtedness
Low rate of
economic
development
Low education
Inflationary
pressure

8. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
CAUSES OF POVERTY
Social factors
High level of
migration from
rural areas
Failure to
implement
land reforms
Capital
deficiency
Globalization

9. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
POLICIES AND PROGRAMMES TO
ALLEVIATE POVERTY
• The measures to alleviate poverty and
unemployment are same because poverty and
unemployment are inter-linked. Generally, a
person who is unemployed is poor.
• Various programmes to fight poverty are-
Jawahar Gram Samridhi Yojana (JGSY),
Sampoorna Grameen Rozgar Yojana (SGRY),
Swarnajayanti Shahri Rozgar Yojana (SJSRY),
Indira Awaas Yojana (IAY), etc.,

10. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
FLAWS IN ANTI- POVERTY
PROGRAMMES
Inadequate
financial limits
Lack of
interest
Poor targeting
Lack of
accountability