Poverty is defined as the inability to meet basic needs for food, shelter, and clothing. In developing countries like India, poverty is measured based on absolute poverty, which refers to having an income less than what is required to meet basic necessities. Poverty is identified using poverty lines that divide the population into poor and non-poor based on income levels. Poverty persists in India through vicious cycles where low productivity and income lead to underdevelopment, low capital investment, and further impoverishment. The key causes of poverty in India include rapid population growth among the poor, low economic development rates, unemployment, agricultural backwardness, and lack of adequate anti-poverty measures. The government aims to reduce poverty through

1. The Problem of
POVERTY in
India
ISC
CLASS - XI

2. WHAT IS POVERTY & WHO
ARE THE POOR?
Poverty is the inability to fulfill the
minimum requirements of life. Man
who can’t fulfill these requirements
are poor.
Generation after generation they live
in poverty, grow in poverty and die in
poverty.
Poverty breeds itself or multiplies
itself.

3. HOW ARE POOR IDENTIFIED?
Poverty
Developed
Countries
Relative
Poverty
Developing
Countries
Absolute
Poverty

4. RELATIVE POVERTY
 In relation to different classes,
regions or countries.
 Level of Subsistence
 Countries having PCI < 1 US$ / Day
[UNO]
 India’s PCI is about $736 / Annum
 In terms of inequality of income
within the country
IN INDIA,
20 % of High Income Group – 45.3%
20 % of Low Income Group – 8.1%

5. ABSOLUTE POVERTY
 It refers to a situation in which a
person’s income is less than what is
required to meet the bare necessities of
life at the current prices.
 Method
 A person with a daily income < 2US$ - Poor
 A person with a daily income < 1US$ - Very
Poor

6. WHAT IS POVERTY LINE?
Minimum necessary level of income is
generally known as poverty line.
It refers to a cut-off point (usually in terms
of per capita expenditure) which divides
people of a region as poor and non-poor.
Percentage of population below poverty
line is called ‘head count ratio’ or ‘poverty
incidence ratio’.
India’s Planning Commission has
adopted a different standard to fix the
poverty line.

7. Vicious Circle of Poverty I
Under
Developmen
Low
Productivity
Low Real
Income
Low
Saving
Low
Investment
Capital
Deficiency

8. Vicious Circle of Poverty II
Under
Developmen
Low
Productivity
Low Real
Income
Low
Demand
Low
Investment
Capital
Deficiency
Note: Vicious Circle of Limited Market

9. Vicious Circle of Poverty III
Under
Developmen
Under
Developed
Resources
Economicall
Backward
People
Note: Vicious Circle of underdeveloped human & capital resources

10. VICIOUS CIRCLE OF POVERTY
Low Income,
Asset &
Education
Lack of
Capital &
Lack of in
Demand
Skills
Lower
Capacity to
Generate
Income
Low Security
Cover from
Economic &
Health Risks
Debts &
Further Loss
of Income

11. CAUSES OF POVERTY
1. Rapid Population Growth Among the Poor
2. Low Rate of Economic Development
3. Unemployment
4. Growth Strategy
5. Inequalities of Income
6. Little Trickle Down Effect of Economic Development
7. Backwardness of Agriculture
8. Inadequate Anti-poverty Measures
9. Low Education
10.Inflationary Rise in Price
11.Socio-cultural Factors
12.Political Factors

12. Government’s Policy
1.Economic Growth
2.Agricultural Development
3.Development of Cottage and Small-
scale Industries
4.Population Control
5.Land Reforms
6.Public Distribution System
7.Poverty Alleviation Programmes