Poverty in INDIA


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Poverty in INDIA

  1. 1. Economics Project Topic :- Poverty Presented to :Presented by :-
  2. 2. POVERTY  INTRODUCTION India‟s economic structure has changed dramatically over last 5-6 decades; among the most dynamic economies recently. • Benefits of growth not widely spread to various sections in society, reached only marginally to low income groups. •  WHAT IS POVERTY • 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. 3. POVERTY LINE  Poverty Line is drawn on the basis of Expenditure that is necessary to Secure the Minimum Acceptable Living Standard for Work & Efficiency.  Since, Food is the most Basic Requirement, thus, Poverty Line is drawn on the basis of a Minimum Necessary Nutritional Standard expressed in terms of Calories per Day.  In India, the Minimum Calories intake of a Person has been put at 2,400 in Rural Area & 2,100 in Urban Areas.  To convert this Calorie intake based Poverty Line into a Monetary Measure of Poverty; the Cost of Minimum Consumption Requirements of Food providing the minimum calories is calculated at prevailing Price.  Thus, Government defined a Person with an Income of Less than Rs.672 (Rural) & Rs.859 (Urban) per month as living below Poverty
  4. 4. TWO WAYS OF POVERTY  Relative Poverty : Relative Poverty 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.  The essential point here is that Poverty of One is Relative to the Richness of the other.  For Example, an Average Middle Class Person is Poor when compared to the Upper Middle Class Person, who in turn, may be poorer than the Richer Person and so on.
  5. 5. Absolute Poverty : It is associated with a Minimum Level of Living or Minimum Consumption Requirements of Food, Clothing, Housing, Health, etc.  All those People who fail to Secure Income or Assets to have access to even these Minimum Consumption Requirements are classified as „Poor‟.  Is relevant for the Less‐Developed Countries.
  6. 6. METHODS OF POVERTY  EXPENDITURE METHOD : Under this the minimum food requirements for survival is estimated.  The food value is converted into calories.  The caloric value of food is then converted into the money value i.e. in rupees.  The total equivalent amount is considered as the poverty line.  INCOME METHOD : This method is used by the government while distributing food through PDS at the local level.  Under this a poverty line is fixed by the government.  All the families whose total income is less than the poverty line fixed by the government are considered as BPL.
  7. 7. CAUSES OF POVERTY Rapidly Rising Population Under Utilized Resources Low Productivity in Agriculture CAUSES OF POVERTY Low Rate of Economic Development Social Factors Unemployment Price Rise
  8. 8. EFFECTS OF POVERTY  Effects of poverty are divided into 3 parts :1) Effects on Children 2) Effects on Women 3) Effects on Education
  9. 9. 1.Effects on children: 22,000 children die each day  27-28 % of all children in develping countries are underweight  10.6 million died in 2003  For the 1.9 billion children from the developing world, there are:  640 million without adequate shelter  400 million with no access to safe water  270 million with no access to health services
  10. 10. 2.Effects on Women:  70% of the world's poor represent a staggering population.  Of the 500,000 women who die in childbirth every year, 99% live in developing countries.  4 million girls and women were sold. 3.Effects on Education:  About 72 million children of primary school age in the developing world were not in school 57 per cent of them were girls.  Nearly a billion people were uneducated after entering 21st century.  121 million out of education worldwide.
  11. 11. : Govt. Policy Regarding Reduction of Poverty  The Govt, of India took certain measures to reduce poverty, inequality of income and wealth in its five year plan periods. Followings are some steps taken by the Govt, from time to time. 1. Integrated Rural Development Programme (IRDP) 2. National Rural Employment Programme (NREP) 3. Rural Landless Employment Guarantee Programme (RLEGP) 4. Jawahar Rozgar Yojna 5. Training of Rural Youth for Self-Employment 6. Development of Women and Children 7. Drought Prone Area Programme 8. Desert Development Programme 9. Employment Exchanges 10. Employment Guarantee Scheme 11. Employment Assurance Scheme