Poverty is defined as a lack of basic human needs like food, shelter, and clothing. It can be measured through relative poverty, which is a lack of resources relative to a society, and absolute poverty, which is a lack of resources to satisfy basic physical needs. India's poverty rate has declined from 45% in the 1990s to 22% in 2011-2012 according to government estimates, though poverty remains a significant problem, especially in rural areas and certain states. Poverty is caused by issues like overpopulation, unemployment, underdevelopment, and low economic growth. The government has implemented various programs aimed at poverty alleviation and increasing employment opportunities in rural areas.

1. Poverty & Economic Inequality
Presentation by
SANDEEP KUMAR

2. WHAT IS POVERTY
Poverty is insufficient supply of those essentials things which
are requisite for an individual to maintain himself.
The world bank describes poverty as-
“Poverty is hunger. Poverty is
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, is fear for the future, living one
day at a time.”

3. TWO WAYS OF POVERTY
1.Relative Poverty :-
A situation where individuals don’t
have access to basic requirements of
life –Food, Shelter and Clothing.
2.Absolute Poverty :-
It is defined as economic inequality in
location or society in which people
live.

4. Poverty Line-
 A person is considered poor if his or her income or consumption level
falls below a given “minimum level” necessary to fulfill basic needs
and this “minimum level” is called as Poverty Line
 Those spending over Rs 32 a day in rural areas and Rs 47 in towns and
cities should not be considered poor, according to former RBI governor
C Rangarajan.
 The poverty line is the minimum level of income deemed adequate in a
particular country. The poverty line is significantly higher in developed
countries than in developing countries.

5. Countries Poverty %
1. Liberia 80 .5%
2. Nigeria 74.1 %
3. Zimbabwe 69.4 %
Countries Poverty %
1.Taiwan 5.1 %
2.Malaysia 5.3 %
3.Kazakhstan 7.1 %
Maximum Poverty Minimum Poverty
Poverty among the countries
Source: CIA World Factbook - January 1, 2014
India ranks 70th having 30 per cent poverty among the countries
according to the Central Intelligence Agency (CIA)

6. .
States Poverty %
Goa 5.1 %
Punjab 5.3 %
Kerala 7.1 %
States Poverty %
Bihar 40.6 %
Chhattisgarh 39.1 %
Jharkhand 36.6 %
Minimum Poverty Maximum Poverty
While national average stands at 21.92% and Rajasthan Stands at
14.7 % according the Annual Report of RBI
Poverty among the States-

7. Poverty Ratio (%)
Number of Poor
(million)
YEAR
Rural Urban Total Rural Urban Total
1. 1993-94 50.1 31.8 45.3 328.6 74.5 403.7
2. 2004-05 41.8 25.7 37.2 326.3 80.8 407.1
3. 2011-12 25.7 13.7 21.9 216.5 52.8 269.3
POVERTY ESTIMATES FOR 2011-12
Source-PRESS INFORMATION BUREAU,GOI.July, 2013
The percentage of persons below the Poverty Line in 2011-12 has been estimated as 25.7% in rural
areas, 13.7% in urban areas and 21.9% for the country as a whole. The respective ratios for the
rural and urban areas were 41.8% and 25.7% and 37.2% for the country as a whole in 2004-05. It
was 50.1% in rural areas, 31.8% in urban areas and 45.3% for the country as a whole in 1993-94.

8. Indicator of Poverty
Poverty Gap Index- The poverty gap index is a measure of the intensity
of poverty. It is defined as the average poverty gap in the population as a
proportion of the poverty line.
Poverty gap index (%) for various countries-
Countries Poverty gap
index %
Liberia 40.1
Switzerland 38.7
United States 38.3
Mexico 37.9
Countries Poverty gap
index %
India 7.5
Ukraine 0.12
Kazakhstan 0.11
Jamaica 0.04
Maximum Minimum
Source- Millennium Development Goal Indicators, United Nations. 2011

9. Economic Inequality
•Economic Inequality refers to
the gap between rich and poor
or contrast between rich and
poor
• The term refers to cross sectional distribution of income or
wealth at any particular period, or to the lifetime income and
wealth over longer periods of time.

10. Causes of Poverty in India
Over-
population
Capital
Deficiency
Increasing Price
Unemployment
Low Growth
Rate
Under-developed
Economy Rural Economy

11. •Heavy pressure of population= Population has been rising in India at
a rapid speed. This rise is mainly due to fall in death rate and more birth
rate
•Unemployment= Due to continuous rise in population, there is chronic
unemployment. Poverty is just the reflection of unemployment.
•Capital Deficiency= Capital is needed for setting up industry, transport
and other projects. Shortage of capital creates unemployment
•Under-developed Economy= The Indian economy is under
developed due to low rate of growth. It is the main cause of poverty

12. •Increase in Price= The steep rise in prices has affected the poor
badly. They have become more and more poor
•Rural Economy= Indian economy is rural economy. Indian
agriculture is backward. And Income in agriculture is very low.
•Lack of proper Industrialization= Industrially, India is a
backward country. 3 per cent of total working population is engaged in
industry. So industrial backwardness is major cause of poverty.
•Low rate of growth= Per capita growth rate of economy has been
very low. It is the main cause of poverty.
•Improper use of Natural Resources= India has large natural
resources like iron, coal, manganese, mica etc But these sources are not
put in proper use.

13. Poverty Alleviation
Poverty alleviation means to reduce the poverty from
urban areas & rural areas through employment.
Poverty reduction is a major goal and issue for many
international organizations such as the United
Nations and the World Bank.

14. Poverty Alleviation Programmes
Integrated Rural Development Program(IRDP) -1979
Rural-Landless Employment Guarantee Programme (RLEGP)-1983
Rural Housing-Indira Awaas Yojana – 1985
National Rural Employment Programme (NREP)-1985
National family Benefit Scheme (NFBS)-1995
National Old Age Pension Scheme (NOAPS)- 1995
Swarnajayanti Gram Swarojgar Yojana (SGSY) &
Sampoorna Grameen Rozgar Yojana-1999
National Food for Work Programme- 2004
M. G. National Rural Employment Guarantee Act (MNREGA)-2006