B.7 Poverty in India

I. Influencing Factors

A. Economic Factors

• Low per capita income: India’s per capita income remains below the global average.
• Inequality in income distribution: High Gini coefficient (0.35–0.40) indicates significant income inequality.
• Slow growth in agriculture: Agriculture contributes only ~15% to GDP but employs ~40% of the population.
• Unemployment and underemployment: High levels of disguised unemployment in rural areas.
• Rural-urban divide: Rural areas lag significantly in infrastructure and access to services.

B. Social Factors

• Lack of education: Low literacy rates (especially among women) hinder economic mobility.
• Gender inequality: Women face systemic discrimination in education, employment, and health.
• Caste system: Social stratification perpetuates poverty among lower castes.
• Population growth: High birth rate strains resources and infrastructure.

C. Geographical Factors

• Disparities in regional development: States like Kerala and Goa have lower poverty rates than states like Jharkhand and Bihar.
• Natural disasters: Frequent floods, droughts, and cyclones affect vulnerable regions.
• Lack of infrastructure: Poor connectivity, electricity, and water supply in rural areas.

D. Institutional and Political Factors

• Inefficient governance: Corruption and bureaucratic delays hinder development.
• Weak implementation of welfare schemes: Many programs suffer from poor targeting and execution.
• Lack of political will: Insufficient focus on poverty alleviation in policy agendas.

II. Counter Policies

A. Government Schemes

B. Key Policies and Reforms

• Rashtriya Krishi Vikas Yojana (RKVY): Launched in 2007 to boost agricultural productivity.
• National Food Security Act (NFSA), 2013: Provides subsidized food grains to 75% of the population.
• Digital India Initiative: Enhances access to digital services, improving financial and educational inclusion.
• Skill India Mission: Focuses on vocational training to enhance employability.

C. International and Regional Initiatives

• World Bank’s India Poverty Reduction Strategy: Focuses on infrastructure and education.
• United Nations Development Programme (UNDP): Supports poverty alleviation through various projects.
• Regional Rural Employment Programmes: Implemented by states to address local poverty issues.

D. Challenges in Implementation

• Targeting inefficiencies: Many schemes suffer from leakages and exclusion errors.
• Lack of monitoring: Poor oversight leads to misuse of funds.
• Digital divide: Limited access to digital infrastructure hampers implementation of digital schemes.
• Corruption: Misuse of funds and embezzlement in welfare programs.

III. Key Facts and Definitions

• Poverty Line: The minimum level of income deemed adequate to maintain a basic standard of living.
• Multi-dimensional Poverty Index (MPI): Measures poverty based on education, health, and living standards.
• Tendulkar Committee (2009): Recommended a poverty line of ₹32 per capita per day.
• Rangarajan Committee (2012): Revised the poverty line to ₹32–₹47 per capita per day.
• National Sample Survey (NSS): Conducts periodic poverty estimation in India.
• Rural Poverty Rate: As of 2022, about 12.5% of the rural population is below the poverty line.
• Urban Poverty Rate: As of 2022, about 10.5% of the urban population is below the poverty line.

IV. Important Dates and Terms

• 2006: Launch of NREGA.
• 2014: Launch of PMJDY and Swachh Bharat Abhiyan.
• 2018: Launch of Ayushman Bharat and PM Kisan Samman Nidhi.
• 2020: India’s poverty rate reduced to 12.5% (NSSO 70th Round).
• Gini Coefficient: 0.35–0.40 (indicating moderate inequality).
• Poverty Ratio: 12.5% (rural) and 10.5% (urban) as per 2022 NSSO data.

V. SSC and RRB Frequently Asked Topics

• Poverty Line and its calculation.
• Key poverty alleviation schemes.
• NSSO poverty estimates.
• Role of NREGA and MGNREGA.
• Impact of digital initiatives on poverty reduction.
• Regional disparities in poverty levels.
• Role of education and health in poverty alleviation.
• Challenges in implementing welfare schemes.