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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 LINE

Rural 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)
Nature & Magnitude of Poverty
        1.Poverty Ratio
2.Rural-Urban Break-up of Poverty
3. Regional Variations in Incidence of Poverty
STATE               %age of Poor or Poverty Ratio Number of BPL Persons
Orissa              46.4                         1.78
Bihar               41.4                         3.69
Chhattisgarh        40.9                         0.99
Jharkhand           40.3                         1.16
Uttaranchal         39.6                         0.35
Madhya Pradesh      38.3                         2.49
Maharashtra         30.7                         3.17
West Bengal         24.7                         2.08
Tamil Nadu          22.5                         1.45
Gujarat             16.8                         0.90
Andhra Pradesh      15.8                         1.26
Kerala              15                           0.49
Delhi               14.7                         0.20
Haryana             14                           0.32
Punjab              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

              Underdevelopment




Low 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 Areas

1. 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.
3. Pradhan Mantri Gramodaya Yojana (PMGY)

• Health, primary education, drinking water, housing
  and rural roads
• Pradhan Mantri Gram Sadak Yojana (PMGSY)
o Plains – 1000 persons
o Hilly, desert and tribal areas – 500 persons
• Pradhan Mantri Gramodaya Yojana (Gram Awas)
o Housing
• Pradhan Mantri Gramodaya Yojana (Rural Drinking
  Water Projects)
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 Areas


1. 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
       PROGRAMMES

Wrong choice of beneficiaries
Inadequate funding
Poor asset Quality
Lack of accountability
Lack of involvement of local community
Thank You…..

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POVERTY IN INDIA

  • 1. POVERTY IN INDIA Made By: Lhamu Tshering Lama Roll No: 85 Tut Group: H-43
  • 2. 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.
  • 3. POVERTY LINE Rural 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)
  • 4. Nature & Magnitude of Poverty 1.Poverty Ratio
  • 6. 3. Regional Variations in Incidence of Poverty STATE %age of Poor or Poverty Ratio Number of BPL Persons Orissa 46.4 1.78 Bihar 41.4 3.69 Chhattisgarh 40.9 0.99 Jharkhand 40.3 1.16 Uttaranchal 39.6 0.35 Madhya Pradesh 38.3 2.49 Maharashtra 30.7 3.17 West Bengal 24.7 2.08 Tamil Nadu 22.5 1.45 Gujarat 16.8 0.90 Andhra Pradesh 15.8 1.26 Kerala 15 0.49 Delhi 14.7 0.20 Haryana 14 0.32 Punjab 8.4 0.21
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  • 8. 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
  • 9. 2. Supply side of Capital Underdevelopment Low Capital Low Formation Productivity Low Low Real Investment Income Low Saving
  • 10. 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
  • 11. 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
  • 12. II. Special Measures for poverty alleviation & employment generation in: a) Rural Areas 1. 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.
  • 13. 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.
  • 14. 3. Pradhan Mantri Gramodaya Yojana (PMGY) • Health, primary education, drinking water, housing and rural roads • Pradhan Mantri Gram Sadak Yojana (PMGSY) o Plains – 1000 persons o Hilly, desert and tribal areas – 500 persons • Pradhan Mantri Gramodaya Yojana (Gram Awas) o Housing • Pradhan Mantri Gramodaya Yojana (Rural Drinking Water Projects)
  • 15. 4. Indira Awas Yojana (IAY) • Construction of free houses • Kuccha Houses Pakka Houses
  • 16. 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
  • 17. 6. National Food for Work Programme • November 14, 2004 • Wage employment + minimum nutrition • Pay = cash + food grains
  • 18. 7. Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) • February 2006 • Employment to develop infrastructure base • 100 days guaranteed employment
  • 19. 8. DPAP, DDP and IWDP • Drought Prone Area Programme; 1973-74 • Desert Development Programme; 1977-78 • Integrated Wastelands Development Programme (IWDP); 1989-90
  • 20. b) Urban Areas 1. Prime Minister’s Rozgar Yojana (PMRY) • Urban areas: 1993-94 • Rural areas: 1994-95 • Self employment to educated unemployed youth
  • 21. 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
  • 22. 3. Valmiki Ambedkar Awas Yojana (VAMBAY) • December 2001 • Construction and upgradation of dwelling units • Cost 50:50 by Center and State
  • 23. 4. Jawaharlal Nehru National Urban Renewal Mission (JNNURM) • 2005-06 • Basic Services to Urban Poor • Integrated housing and Slum Development Programme
  • 24. FLAWS OF THE ANTI-POVERTY PROGRAMMES Wrong choice of beneficiaries Inadequate funding Poor asset Quality Lack of accountability Lack of involvement of local community