Introduction:

In this chapter, we’re going to discuss a major problem in India i.e. poverty. We’ll look at real-life examples and how experts in social sciences study it. India has a lot of poor people, around 270 million in 2011-12, which is about one in every five people. This makes India the country with the most poor people in the world. We’ll talk about why people are poor, what the government is doing to help, and how we can think about poverty beyond just not having enough money.

What is Poverty?

• Poverty means a situation where a person cannot fulfil basic needs of life like food, clean drinking water, clothing, shelter, education, healthcare, sanitation, electricity and regular income.
• Since poverty is not only lack of income but also lack of many basic needs, therefore poverty is called a multi-dimensional problem.

Note: NITI Aayog uses the National Multidimensional Poverty Index (MPI) to study poverty in India.

In recent years, sanitation (toilet and hygiene), electricity, clean cooking fuel (LPG/PNG), digital access (mobile and internet), and safe transport access have also become important parts of basic life.

Poverty is Multi-dimensional

Multi-dimensional poverty refers to a situation where lack of income results in many other shortages, such as poor health, low education and weak living conditions.

How do social scientists identify poor people?

• Poverty has many sides, so social scientists use different indicators to study it.
• Earlier, poverty was mainly measured through income and consumption levels.
• Now, poverty is also checked through other life conditions, not just money.
• For this, social scientists (even economists and policy makers) use Multidimensional Poverty Index (MPI).
• MPI has 3 main indicators:
  • health, education and standard of living.
• Note: It is calculated using 12 indicators under these dimensions (In India).

Social Reasons of Poverty :

Social Exclusion:

• It means poor people often live in poor surroundings and get left out from equal facilities and opportunities enjoyed by better-off people.
• It can be both a cause and a result of poverty.
• Example: caste system, where some groups face unequal opportunities, which keeps them poor.

Vulnerability:

• Vulnerability means some groups have a higher chance of becoming poor or remaining poor.
• It depends on the options people have like assets, education, health and job opportunities.
• Vulnerable groups suffer more during natural disasters and job loss or economic crisis because they have low capacity to handle shocks.
  • Vulnerable Groups are : SCs, STs, minorities, women, children, elderly people, persons with disability, landless labourers, migrants, displaced people, seasonal workers, and persons with serious health issues.

What is Poverty Line ?

• It is an imaginary minimum level of income or consumption needed to meet basic needs.
  • Consumption : It means the amount a family spends on items like food, clothing, etc.
• Poverty line is not the same everywhere because basic needs are different in different places and they also change over time.
  • For example: A person without a car may be considered poor in the USA, but in India, owning a car is still seen as a luxury
  • Similarly, earlier poverty was mostly measured through income and food needs, but today indicators like sanitation (toilet facility) are also used to identify poverty more clearly.

Consumption-Based Poverty Line :

• It measures poverty using a person’s income or consumption (spending) level.
• A person is considered poor if their income/consumption falls below the minimum amount needed for basic needs.
• It mainly focuses on how much people can afford to consume, especially food and other essentials.
• To estimate the share of population below the poverty line, we use HCR (Head Count Ratio).
  • HCR (Head Count Ratio) shows the percentage of people living below the poverty line.

Calorie-Based Poverty Line:

• Caloric needs depend on age, gender, and the type of work.
• On the basis of type of work : Rural areas require more calories due to physical labour.
  • For example: 2400 calories/day in rural areas and 2100 calories/day in urban areas
• In 2011-12, the rural poverty line was about Rs 816/month, and the urban line was Rs 1000/month for one person.
  • A rural family of five earning less than Rs 4,080/month is below the poverty line.
  • An urban family with a similar income needs at least Rs 5,000/month for basic needs.
• Note: Poverty line is revised over time due to price rise and changing basic needs.
• Today, India also uses MPI (12 indicators) to measure poverty beyond income.

Progress in Reducing Poverty:

• In the 1990s, the proportion of poor fell from 45% (1993–94) to 37% (2004–05), but the number remained around 40 crores. (based on NCERT data)
• During 2000–2011, both the percentage and number of poor declined.
• MPI poverty also reduced from 25% (2015–16) to 15% (2019–21).
• As per official records, 13.5 crore people escaped multidimensional poverty in this period.
• Deprivations reduced faster in rural areas than in urban areas.

Vulnerable Groups:

• Poverty is not equal for all groups; it varies across social and economic categories.
• Most vulnerable social groups: SCs and STs.
• Whereas, Most vulnerable economic groups: rural agricultural labourers and urban casual labourers.
  • Note: 43% STs and 34% urban casual workers live below the poverty line.
• Moreover, poverty becomes worse when people from SC/ST groups also work as landless casual labourers (double disadvantage).

Inequality Within Families:

• Poverty affects all family members, but some suffer more than others, especially women, the elderly, and female infants.

Inter-State Disparities

• Poverty in India is not the same in every state, so we see inter-state disparities.
• Poverty has reduced a lot since the early 1970s, but the rate of reduction differs from state to state.
• In 2019–21, these states had HCR below 10% :
  • Karnataka, Tamil Nadu, Delhi, Punjab, Himachal Pradesh, Andhra Pradesh, Haryana, Maharashtra.
• States like Bihar, Uttar Pradesh, Madhya Pradesh and Rajasthan have also shown strong improvement in reducing poverty.
• Different states reduced poverty using different methods:
  • Kerala: focus on human resource development
  • West Bengal: land reforms
  • Andhra Pradesh & Tamil Nadu: public distribution of food grains (PDS)

Global Poverty Trends:

• Poverty is not only India’s problem, it exists all over the world.
• To compare countries fairly, the World Bank uses one common poverty line:
  • Note: Extreme poverty = living on less than $2.15 per day
• Globally, extreme poverty has reduced from 16.27% (2010) to 9.05% (2019).
• However, poverty reduction is not equal everywhere, as different regions progress at different speeds.
  • For example, China and Southeast Asian countries reduced poverty sharply due to rapid economic growth and strong investment in human resource development, whereas poverty in Sub-Saharan Africa has declined much more slowly.
  • Other examples: In Latin America and the Caribbean, poverty increased slightly and In some former socialist countries, poverty resurfaced.

Poverty and Sustainable Development Goals (SDGs)

• The United Nations (UN) aims to end poverty in all forms by 2030 through the Sustainable Development Goals (SDGs).
• SDGs are a shared plan for peace, prosperity, and protecting the planet.
• There are 17 SDGs, and each goal has specific targets to be achieved by UN member countries.
• Ending poverty needs urgent action by both developed and developing countries.
• So, Developed countries should support developing nations by helping to:
  • end poverty
  • improve health and education
  • reduce inequalities
  • tackle climate change
  • promote sustainable development

Causes of Poverty:

1. Historical Factors: Under British rule, India’s economy developed slowly, so people got fewer jobs and low incomes, leading to poverty.
2. Impact of British Policies: British policies weakened handicrafts and industries, which reduced work opportunities and increased unemployment.
3. Economic Growth and Population: Slow income growth and fast population increase created more job demand than job supply, so many people remained poor.
4. Limited Agriculture Benefits: The Green Revolution helped only some areas, so many regions did not get better farming income or employment.
5. Income Inequality: Unequal land and resources kept wealth with a few people, while many families lacked assets to earn properly.
6. Socio-Cultural Factors: Poor families spend on social duties and take costly loans, which increases indebtedness and poverty.

Anti-Poverty Measures:

• Removing poverty is a major goal of India’s development.
• India’s anti-poverty strategy mainly works through:
  • Economic growth and
  • Targeted anti-poverty programmes

Role of Economic Growth:

• Economic growth creates more jobs and increases income, helping reduce poverty.
• It supports human development by improving spending on education and health.
• Moreover, It encourages families to send children (including girls) to school for a better future.

Targeted Anti-Poverty Programmes :

Because growth alone is not enough, the government runs special schemes to help poor people directly.

MGNREGA (2005)

• Provides 100 days of wage employment to rural households.
• Helps in drought control, soil conservation and sustainable development.
• One-third jobs are reserved for women.
• Recent Reform : Viksit Bharat–G RAM G Act, 2025 replaced MGNREGA and increased the guaranteed rural wage employment from 100 to 125 days per household. It focuses on improving rural livelihoods and infrastructure with better planning, transparency, and support during peak farming seasons.

PM POSHAN

• Improves children’s nutrition and increases school enrolment and attendance.
• Targets students of Classes I–VIII in government and aided schools.

Pradhan Mantri Surakshit Matritva Abhiyan (2016)

• Provides regular antenatal care to reduce maternal and infant deaths.
• Ensures safer pregnancy and delivery through timely health check-ups.

Pradhan Mantri Ujjwala Yojana (2016)

• Provides free LPG connection to poor households to promote smoke-free cooking.
• Improves women’s health and saves time spent collecting firewood.
• Also supports the environment by reducing deforestation and pollution.

Challenges Ahead:

1. Persistent Poverty: Poverty has reduced, but removing it completely is still a big challenge for India.
2. Rural–Urban Gap Poverty levels are not the same in rural and urban areas.
3. Inter-State Disparities: Poverty differs from state to state because development is uneven.
4. Rural Dependence on Agriculture: Many poor people live in villages and depend on agriculture, so slow farm growth keeps poverty high.
5. Vulnerable Groups: Some social and economic groups remain more vulnerable and face a higher risk of poverty.

Human Poverty :

• Income-based poverty shows only a minimum survival level, not a good quality of life.
• In today’s world, poverty is not just about food, but also about living and growing.
• Therefore, scholars suggest a broader idea called human poverty.
• A person can still be poor if they lack education, shelter, healthcare, job security, skills, confidence, and dignity.
• Poverty also includes caste/gender discrimination and problems like child labour.
• With development, the meaning of poverty also changes and becomes broader.

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