This chapter examines poverty as a major challenge in independent India, exploring its multidimensional nature through case studies, social science perspectives, and the poverty line concept. It analyzes poverty trends in India and globally, discusses causes, and outlines government anti-poverty measures, concluding with the broader concept of human poverty.
Introduction: Poverty is a pervasive issue, evident in landless rural laborers and urban slum dwellers. NITI Aayog’s Multidimensional Poverty Index (MPI) shows a decline from 55% (2005-06) to 15% (2019-21), with expectations of reaching single digits soon.
Urban Case - Ram Saran: Ram Saran, a 33-year-old daily-wage laborer in Ranchi, earns ₹3,500/month irregularly, supporting a family of six, his parents, and brother. His wife earns ₹1,500 as a maid, and his son earns ₹700 at a tea shop. Living in a one-room shack, they eat meager dal-rice meals, lack clothes and shoes, and face constant financial strain.
Rural Case - Lakha Singh: Lakha Singh, from a village near Meerut, works odd jobs for farmers, earning ₹200/day or in-kind payments. His landless family of six lives in a kuchha hut, struggles for two meals daily, and cannot afford soap or oil. His father died of tuberculosis, and his mother is ill. Only his children attend school, but new clothes are rare.
Dimensions of Poverty: These cases highlight:
Social Scientists’ Perspective: Poverty is measured beyond income/consumption, using indicators like health (nutrition, mortality), education (schooling, attendance), and living standards (fuel, sanitation, water, housing, electricity, assets, bank accounts).
Social Exclusion: Poor people live in marginalized surroundings, excluded from opportunities enjoyed by others, as seen in caste-based discrimination, which perpetuates poverty.
Vulnerability: Groups like Scheduled Castes, Tribes, widows, or the disabled face higher risks of poverty due to limited assets, education, health, and job options, especially during crises like natural disasters.
Poverty Line: Defined by income/consumption below a minimum level for basic needs, varying by country and time. In India, it was based on calorie requirements (2,400 rural, 2,100 urban calories/day), converted to monetary expenditure. The MPI now uses 12 indicators for a holistic measure.
Estimates: Table 3.1 shows consumption-based poverty declined from 45% (1993-94) to 22% (2011-12), with the number of poor dropping from 404 million to 270 million. MPI-based poverty fell from 25% (2015-16) to 15% (2019-21), lifting 135 million people out of poverty.
| Year | Rural (%) | Urban (%) | Total (%) | Rural (M) | Urban (M) | Combined (M) |
|---|---|---|---|---|---|---|
| 1993-94 | 50 | 32 | 45 | 329 | 75 | 404 |
| 2004-05 | 42 | 26 | 37 | 326 | 81 | 407 |
| 2009-10 | 34 | 21 | 30 | 278 | 76 | 355 |
| 2011-12 | 26 | 14 | 22 | 217 | 53 | 270 |
| 2015-16 (MPI) | 32.6 | 8.7 | 25 | NA | NA | NA |
| 2019-21 (MPI) | 19.3 | 5.3 | 15 | NA | NA | NA |
Inter-State Disparities: Poverty varies across states. Karnataka, Tamil Nadu, Delhi, Punjab, Himachal Pradesh, Andhra Pradesh, Haryana, and Maharashtra have HCR below 10% (2019-21). Bihar, Uttar Pradesh, Madhya Pradesh, and Rajasthan show significant declines. Kerala emphasizes human resources, West Bengal land reforms, and Andhra Pradesh/Tamil Nadu food distribution.
Vulnerable Groups: Scheduled Castes (29%), Scheduled Tribes (43%), rural agricultural laborers (34%), and urban casual laborers (34%) are most vulnerable. Intra-family inequalities affect women, elderly, and female infants, who face resource denial.
World Bank Standard: Poverty is defined as living below $2.15/day (2017 PPP). Global poverty fell from 16.27% (2010) to 9.05% (2019). China (0.1% in 2020) and Southeast Asia saw sharp declines due to economic growth and human resource investment.
Regional Variations: South Asia’s poverty dropped from 13% (2017) to 11% (2021), with the number of poor falling from 233 million to 207 million. Sub-Saharan Africa’s poverty declined marginally (36.6% to 35%), hosting most of the world’s extreme poor. Latin America’s poverty rose slightly (4.4% to 4.6%).
Sustainable Development Goals (SDGs): The UN’s SDG 1 aims to end all forms of poverty by 2030. India’s decline in MPI aligns with this goal, supported by government interventions.
Historical Factors: British colonial policies stifled industrial growth, ruining handicrafts and causing low economic development until the 1980s.
Economic Factors: Low job creation, high population growth, and unequal land/resource distribution perpetuate poverty. Land reforms, aimed at redistribution, were poorly implemented.
Social Factors: Spending on social/religious ceremonies and borrowing for agricultural inputs lead to indebtedness, trapping the poor in a cycle of poverty.
Urbanization: Limited urban jobs force people into low-paying roles like rickshaw pullers or vendors, leading to slum living and urban poverty.
Economic Growth: India’s growth rate rose from 3.5% (1970s) to 6% (1980s-1990s), reducing poverty by expanding opportunities and enabling education investment. However, agricultural growth lags, impacting rural poor.
Targeted Programs:
Broader Concept: Beyond income, poverty includes lack of education, healthcare, shelter, job security, and freedom from discrimination. Human poverty reflects a lack of reasonable living standards, not just subsistence.
Challenges Ahead: Despite progress, rural-urban and inter-state disparities, vulnerable groups, and persistent human poverty pose challenges. Higher growth, universal education, women’s empowerment, and declining population growth are key to further reductions.
Poverty’s Complexity: Poverty encompasses hunger, homelessness, illiteracy, poor health, and vulnerability, as seen in Ram Saran and Lakha Singh’s stories.
Progress: India’s poverty rate dropped significantly (45% to 15%), driven by economic growth and programs like MGNREGA and PM Ujjwala, with states like Bihar and Kerala showing varied strategies.
Future Needs: Addressing disparities, enhancing education/health access, and broadening the poverty definition to include human development will align India with SDG 1, ensuring a poverty-free future by 2030.