Poverty in India

Explain the concept and magnitude of Poverty in India. What are the main Causes of Poverty.

•      The Planning Commission set up a Working Group  in 1962.  It recommended that the national minimum for a household of 5 persons should be not less than Rs. 100/- per month for rural and Rs. 125/- for urban at 1960-61 prices. Thus it comes to Rs, 20/- per head in rulal areas and Rs. 25 in urban areas.

•      These estimates excluded the expenditure on health and education, which both were expected to be provided by the State.

•      This was subsequently expanded in 1979 by a task force (Y. K. Alagh Committee)

Y. K. Alagh Committee

Lakwawala Committee – 1993

Suresh Tendulkar Committee

Magnitude of Poverty

Causes of Poverty:

•      Rapid growth of population

•      Unemployment

•      Indebtedness

•      Geographical factors- isolation, low resource base, low rainfall

•      Inequality

•      Demographic factors- high dependency ratio, poor nutrition

•      Low education

•      Social factors

•      Institutional factors-land reforms

•      Low capital

•      No skill or assets, poor health, Traditional expenditure on rituals, exploitation in the market, climatic conditions, corruption, inflation and high prices