Sunday, May 6, 2018

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


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