POVERTY IN INDIA Made By: Lhamu Tshering Lama Roll No: 85 Tut Group: H-43
Relative Poverty• It refers to the income or asset position of one class or group of people in comparison with the other classes or groups, or of one individual with the others.• It refers to income inequality.Absolute Poverty• Inability to achieve the minimum requirements of life, health and efficiency due to very low income or insufficient assets.• State of deprivation.
POVERTY LINERural Areas 2400 calories Rs. 229/month (1993-94) Rs. 356/month (2004-05)Urban Areas 2100 calories Rs. 264/month (1993-94) Rs.538/month (2004-05)
3. Regional Variations in Incidence of PovertySTATE %age of Poor or Poverty Ratio Number of BPL PersonsOrissa 46.4 1.78Bihar 41.4 3.69Chhattisgarh 40.9 0.99Jharkhand 40.3 1.16Uttaranchal 39.6 0.35Madhya Pradesh 38.3 2.49Maharashtra 30.7 3.17West Bengal 24.7 2.08Tamil Nadu 22.5 1.45Gujarat 16.8 0.90Andhra Pradesh 15.8 1.26Kerala 15 0.49Delhi 14.7 0.20Haryana 14 0.32Punjab 8.4 0.21
VICIOUS CIRCLE OF POVERTY 1. Demand Side of Capital Underdevelopment Low Capital Low Formation Productivity Low Low Real Investment Income Low Demand & Limited Size of Market
2. Supply side of Capital UnderdevelopmentLow Capital Low Formation Productivity Low Low Real Investment Income Low Saving
CAUSES OF POVERTY Underdeveloped nature of India’s Economy Inequalities in income and asset ownership Rapid Increase in population Unemployment Inflation Rural Character of Indian Economy Sociological reasons
MEASURES TO REDUCE POVERTY I. General Measures Accelerating the growth rate Emphasis on rural development Development of village and small scale industries Direct attack on poverty Reducing Inequalities in Income Limiting growth rate of population
II. Special Measures for poverty alleviation & employment generation in: a) Rural Areas1. Swarnajayanti Gram Swarozgar Yojana (SGSY)• April 1, 1991• Integrated Rural Development Programme (IRDP), Training Rural Youth for Self-Employment (TRYSEM), Development of Women and Children in Rural Areas (DWCRA) and Million Wells Scheme (MWS).• Self employment• For eg: providing sewing machines to poor women, milch cattle, pair of bullocks to plough the land etc.
2. Sampoorna Grameen Rozgar Yojana (SGRY)• September 2001• Employment Assurance Scheme (EAS) and Jawahar Gram Smridhi Yojana (JGSY) [April, 2002]• Food security• Cost sharing 75:25 by Center and State.
4. Indira Awas Yojana (IAY)• Construction of free houses• Kuccha Houses Pakka Houses
5. Antyodaya Anna Yojana• December 2000• Subsidized food grains to 2 crore people• Wheat 25kgs @ Rs. 2 per kg• Rice 25kgs @ Rs. 3 per kg
6. National Food for Work Programme• November 14, 2004• Wage employment + minimum nutrition• Pay = cash + food grains
7. Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)• February 2006• Employment to develop infrastructure base• 100 days guaranteed employment
8. DPAP, DDP and IWDP• Drought Prone Area Programme; 1973-74• Desert Development Programme; 1977-78• Integrated Wastelands Development Programme (IWDP); 1989-90
b) Urban Areas1. Prime Minister’s Rozgar Yojana (PMRY)• Urban areas: 1993-94• Rural areas: 1994-95• Self employment to educated unemployed youth
2. Swarna Jayanti Shahri Rozgar Yojana• December 1997• Nehru Rozgar Yojana, Urban Basic Services for the Poor and Prime Ministers Integrated Urban poverty Alleviation Programme• Urban self employment and Wage employment
3. Valmiki Ambedkar Awas Yojana (VAMBAY)• December 2001• Construction and upgradation of dwelling units• Cost 50:50 by Center and State
4. Jawaharlal Nehru National Urban Renewal Mission (JNNURM)• 2005-06• Basic Services to Urban Poor• Integrated housing and Slum Development Programme
FLAWS OF THE ANTI-POVERTY PROGRAMMESWrong choice of beneficiariesInadequate fundingPoor asset QualityLack of accountabilityLack of involvement of local community