Poverty In India – Types, And Causes of Poverty

Introduction –

Poverty is one of the major problems facing economies, whether they are developed, developing, or underdeveloped.

According to the World Bank, in 2015, 10% of the world’s population lived below the poverty line, which means they earned less than $1.90 per day. This population is about 700 million.

In the recent report of the Asian Development Bank (ADB), the pandemic in the developing Asian region added 68 million people to poverty.

What is Poverty?

The word poverty has been derived from the French word ‘Poverte’ which means poor. Poverty is the inability to get the minimum consumption required for life, health and efficiency. The minimum consumption includes food, clothes, housing and education.

In terms of Kofi Anan, “Extreme poverty anywhere is a threat to human security everywhere.”

Causes of Poverty at the Global level:

1.Education System:

Education is the tool in the hands of human beings to raise the standard of living. But unfortunately, they have fewer access to education and schools due to various factors such as financial problems, transportation problems, etc. Girls are given fewer chances to attain education as compared to boys. As a result, they do low-profile jobs to earn money from hand to mouth. Poverty and education go hand in hand. Poverty leads to less education, and less education leads to poverty.

2. Health System:

Poor health systems are another reason for poverty, as people who suffer from diseases like malaria, diarrhea, dengue, etc. have less productivity at the workplace. Also, they have to spend more money on hospitals. So the poor become extremely poor.

3. Inequality:

People are discriminated against on the basis of color, caste, creed, religion, and gender. The backward people have been given fewer opportunities in jobs and education. Similarly, women are given fewer rights as compared to men.

4. Wars:

Wars are another important reason for poverty. In this modern era, when every country wants to expand its territories, they indulge in wars. The best example can be seen in the war between Russia and Ukraine. As a result, millions of Ukrainians fled their homes, and now they have no homes, clothes, or food. War also adversely affects infrastructure. According to UNICEF, the Russia-Ukraine war added an additional 4 million children across Eastern Europe and Central Asia.

5. Climate Change:

Due to climate change, the chances of floods, droughts, and tsunamis increase, which has a negative impact on the production of the country, especially the agricultural crops.

6. Inflation:

It means the rise in prices. In the last decade, the prices of every item, generally food commodities, have increased a lot. A major part of their income is spent on these basic facilities, so they have no money to spend on other essentials.

Types of Poverty

1. Absolute Poverty
2. Relative poverty
3. Urban Poverty
4. Rural Poverty

Let us discuss all these types in detail:

A. Absolute Poverty:

It refers to the measure of poverty keeping in view the economic condition of the country. Absolute poverty is also called extreme poverty.

The United Nations defined absolute poverty as “a condition characterized by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education, and information.

Absolute Poverty in India –

• Calorie Criteria – In India Individuals in rural areas must get 2400 calories whereas in urban areas an individual must get 2100 calories per day.
  
• Minimum Consumption Criteria – Two famous committees have been appointed in India to determine the minimum consumption criteria-

1. Tendulkar Committee– This committee was established under the chairmanship of Suresh Tendulkar in 2005. It submitted its report in 2009-2010. On the basis of the committee the minimum money needed monthly per capita to fulfill basic requirements in 2011-12 was-

In Urban area: ₹1000

In Rural area:  ₹816

2. Rangarajan Committee- This committee was established in 2012 under the chairmanship of C. Rangarajan. It submitted its report in 2014. According to this committee minimum monthly income to fulfill basic requirements needed per capita was-

In Urban area: ₹1407

In Rural area:  ₹972

B. Relative Poverty:

Relative poverty is the comparison between the standard of living of different individuals within the same country. In other words, It is when some households receive 50% less than the average income of the country.

C. Urban Poverty:

• Urban population refers to the poor population that lives in urban areas. They have various problems, such as

• There are no sanitation facilities.

• No provision of clean drinking water

• There is no provision for housing for poor people, so they are forced to live in slums.

• They don’t have access to health facilities.

• The children who live in slums have no access to education.

D) Rural Poverty:

Rural poverty means the poor people who reside in villages.

Most of the rural poor population indulges in agriculture-based activities.

It includes landless farmers and subsistence farmers.

According to the International Monetary Fund, rural poverty is about 63% of total global poverty.

Causes of Poverty in India

After 75 years of planning, the problem of poverty still continues in India. Poverty in India is the major economic problem. Poverty is a curse for the entire nation. The following are the causes of poverty at the global level.

1. Population –
   The main reason for poverty is the increasing population. In India the income of families is very limited so they fail to fulfill the food demand of the family members which also leads to the malnutrition problem. It is estimated that India will surpass China in terms of population by 2045.

2. Unemployment –
   In India different types of unemployment exist such as seasonal unemployment, disguised unemployment, structural unemployment etc. Unemployed people suffer poverty.

3. Poor Health and Education –
   People who have poor health and suffer from various diseases also have low productivity. As a result, they earn less. Uneducated people or less educated individuals get less opportunities to succeed in life or get a better job.

4. Unequal Distribution of Wealth –
   In India wealth is concentrated in few hands. The Rich become richer and the poor become poorer. In research it is found that National Income is 31% in the hands of the top 10% population of the country.

5. Inflation –
   It means a rise in the general price of products. The lower and medium-income families suffer a lot as they feel difficulty in fulfilling their basic wants.

6. Outdated Social Institutions –
   Indian people still follow old social institutions such as the caste system. People spend a lot of money on marriage, festivals and other ceremonies. In order to copy them poor people also spend a lot of money on the above-mentioned events by taking debts from banks and falling into debt traps. 
   
7. Underutilization of Resources –
   India has a large number of natural resources like coal, iron and magazines. But unfortunately, India does not have proper modern technologies to extract these resources.

8. Vicious Circle of Poverty-
   Indian people are trapped in the vicious circle of poverty.

         Supply side: Less income-Less saving-Less investment-Less productivity 

         Demand side: Less income-Less demand-Less investment-Less productivit

9. Corruption –
Corruption is deep rooted in the country. Most Government officials indulge in corrupt activities and no benefit of poverty alleviation programs reach on the ground level to poor families.

However, the Indian government tried its best to remove poverty. Various schemes have been started from time to time by the government. Some of the major schemes are

• PM Rozgar Yojna
• MGNREGA
• Twenty Points programme
• Swaranjayanti Gram Swarozgar Yojna
• Annapoorna etc.