Poverty
PART I. Read below given Contents
Poverty: Dimensions
Meaning of Dimensions of Poverty
Poverty is not limited to lack of income alone. It has economic, social, regional, and human dimensions.
Even after achieving economic growth after 1947, a significant section of India’s population still remains deprived of development benefits.
Types Of Poverty
1. Absolute Poverty
Meaning
Absolute poverty refers to a condition where people do not have enough income to satisfy minimum basic needs for survival.
Features
People suffer from:
- Hunger
- Malnutrition
- Homelessness
- Unemployment
- Lack of healthcare
Example
A family unable to afford basic food and shelter is considered absolutely poor.
2. Relative Poverty
Meaning
Relative poverty compares one section of society with another better-off section.
Features
It includes lack of:
- Quality housing
- Education
- Healthcare
- Social security
- Comfort and leisure
Explanation
Even if a person survives with minimum income, he may still be poor compared to richer sections of society.
Social Exclusion
Meaning
Social exclusion means certain groups are unable to participate fully in social and economic life.
Examples
People may be excluded from:
- Employment opportunities
- Festivals and social functions
- Education
- Leisure activities
Explanation
Poverty creates social isolation and weakens social participation.
Inequality
Meaning
Inequality refers to the gap between rich and poor sections of society.
Features
- Income and wealth become concentrated among a few people.
- Poor people remain deprived of opportunities.
Indian Scenario
In India:
- Rich sections are becoming wealthier.
- Poor sections continue to struggle.
This increases social and economic inequality.
Regional Dimension of Poverty
Meaning
Poverty levels differ from one state to another.
States with Lower Poverty
- Delhi
- Punjab
- Haryana
- Kerala
- Tamil Nadu
States with Higher Poverty
- Uttar Pradesh
- Bihar
- Madhya Pradesh
- West Bengal
Reasons
- Uneven industrial development
- Poor infrastructure
- Agricultural backwardness
- Lack of employment opportunities
Rural-Urban Disparity
Meaning
Poverty differs between rural and urban areas.
Rural Areas
Rural poverty is higher because:
- Agriculture is less profitable.
- Crop failures occur frequently.
- Landholdings are fragmented.
- Employment opportunities are limited.
Urban Areas
Urban areas generally have:
- More industries
- Service sector jobs
- Better infrastructure
Even low-paying informal jobs are more available in cities.
Rural-Urban Migration
Meaning
People move from villages to cities in search of better livelihoods.
Causes
- Rural unemployment
- Agricultural distress
- Better opportunities in urban areas
Effects
- Growth of slums
- Pressure on urban infrastructure
- Increase in informal employment
Poverty Estimation Committees in India
Y. K. Alagh Committee
Meaning
It was the first committee to officially define the poverty line in India.
Main Recommendation
Poverty should be measured on the basis of calorie intake.
Poverty Line
- Rural areas: 2400 calories per day
- Urban areas: 2100 calories per day
Reason for Difference
Rural people perform more physical labour and therefore require more calories.
Limitation
The committee assumed:
would be provided by the government free of cost.
Lakdawala Committee
Meaning
This committee improved the poverty estimation method.
Main Features
- Included calorie norms of Alagh Committee
- Added:
- Health expenditure
- Education expenditure
Limitation
The methodology produced higher poverty estimates and faced criticism for calculation errors.
Tendulkar Committee
Meaning
This committee shifted poverty estimation away from calorie-based measurement.
Main Features
It included:
- Nutrition
- Health
- Education
- Electricity
- Transport
Basis
Poverty was estimated using:
- Consumption expenditure
- Cost of living
Poverty Line
- Rural: ₹27 per day
- Urban: ₹33 per day
Estimate
About 21.5% of India’s population was estimated to be poor.
Criticism
Many argued that the poverty line was unrealistically low.
Rangarajan Committee
Meaning
This committee was formed to revise the Tendulkar estimates.
Main Features
Poverty estimation based on:
- Monthly consumption expenditure
Poverty Line
- Rural: ₹972 per month (₹32/day)
- Urban: ₹1407 per month (₹47/day)
Estimate
Poverty in India was estimated at 29.5% in 2011-12.
Components of Rangarajan Method
1. Food Component
Included:
2. Non-Food Component
Included:
- Education
- Clothing
- Transport
- House rent
- Other necessary expenditures
Limitations of Rangarajan Committee
- Poverty is broader than hunger.
- It only represents minimum survival conditions.
- It does not guarantee a comfortable life.
- Different welfare schemes require different poverty measurements.
Other Benchmarks of Poverty
Human Development Index (HDI)
Meaning
HDI measures overall human development.
Released By
United Nations Development Programme
Indicators
- Life expectancy
- Education
- Per capita income
Importance
It measures social and economic well-being, not just income poverty.
India’s Position
India ranked 132 among 191 countries in 2022 and belongs to the medium human development category.
Gender Inequality Index (GII)
Meaning
It measures inequality between men and women.
Importance
Women are often more affected by poverty, leading to:
Global Hunger Index (GHI)
Meaning
It measures the level of hunger in countries.
Published By
- International Food Policy Research Institute
- Welthungerhilfe
Indicators
- Child wasting
- Child stunting
- Infant mortality
- Undernourishment
India’s Position
India ranked 107 out of 121 countries in 2022.
Conclusion
Poverty in India is a multidimensional problem involving:
- Economic deprivation
- Social exclusion
- Regional imbalance
- Inequality
Although India has achieved significant economic growth after independence, poverty still remains a major challenge. Effective poverty reduction requires:
- Inclusive growth
- Employment generation
- Better healthcare and education
- Social security
- Balanced regional development
PART -II ANSWER FOR MULTIPLE CHOICE QUESTIONS (MCQs)
1. Which of the following best describes the multidimensional nature of poverty?
- Poverty includes only lack of income.
- Poverty includes social and regional deprivation.
- Poverty includes lack of opportunities and human development.
- Poverty affects participation in economic and social life.
Select the correct answer using the codes given below:
a) 1 only
b) 2 and 3 only
c) 2, 3 and 4 only
d) 1, 2, 3 and 4
Answer: c) 2, 3 and 4 only
2. Which of the following are characteristics of absolute poverty?
- Inability to meet minimum basic needs
- Hunger and malnutrition
- Lack of healthcare facilities
- Comparison with richer sections of society
Select the correct answer using the codes given below:
a) 1, 2 and 3 only
b) 2 and 4 only
c) 1 and 4 only
d) 1, 2, 3 and 4
Answer: a) 1, 2 and 3 only
3. Relative poverty mainly refers to:
- Comparison between rich and poor sections
- Lack of social security and quality living
- Inability to meet only survival needs
- Differences in living standards
Select the correct answer using the codes given below:
a) 1 and 3 only
b) 1, 2 and 4 only
c) 2 and 3 only
d) 1, 2, 3 and 4
Answer: b) 1, 2 and 4 only
4. Social exclusion refers to:
- Lack of participation in social life
- Exclusion from education and employment
- Equal access to opportunities
- Social isolation due to poverty
Select the correct answer using the codes given below:
a) 1, 2 and 4 only
b) 1 and 3 only
c) 2 and 3 only
d) 1, 2, 3 and 4
Answer: a) 1, 2 and 4 only
5. Which of the following statements regarding inequality are correct?
- Wealth becomes concentrated among a few people.
- Poor sections remain deprived of opportunities.
- Inequality reduces regional imbalance automatically.
- Economic inequality widens the gap between rich and poor.
Select the correct answer using the codes given below:
a) 1 and 3 only
b) 2 and 4 only
c) 1, 2 and 4 only
d) 1, 2, 3 and 4
Answer: c) 1, 2 and 4 only
6. Which of the following are causes of regional poverty in India?
- Uneven industrial development
- Poor infrastructure
- Agricultural backwardness
- Lack of employment opportunities
Select the correct answer using the codes given below:
a) 1 and 2 only
b) 3 and 4 only
c) 1, 2 and 3 only
d) 1, 2, 3 and 4
Answer: d) 1, 2, 3 and 4
7. Rural poverty in India is higher mainly because:
- Agriculture is less profitable
- Landholdings are fragmented
- Employment opportunities are limited
- Rural areas have more industries
Select the correct answer using the codes given below:
a) 1, 2 and 3 only
b) 1 and 4 only
c) 2 and 4 only
d) 1, 2, 3 and 4
Answer: a) 1, 2 and 3 only
8. Which of the following are effects of rural-urban migration?
- Growth of slums
- Pressure on urban infrastructure
- Increase in informal employment
- Reduction in urban population
Select the correct answer using the codes given below:
a) 1 and 2 only
b) 2 and 4 only
c) 1, 2 and 3 only
d) 1, 2, 3 and 4
Answer: c) 1, 2 and 3 only
9. Consider the following statements regarding the Y. K. Alagh Committee:
- Poverty was measured using calorie intake.
- Rural poverty line was based on 2400 calories per day.
- Urban poverty line was based on 2100 calories per day.
- The committee included private education expenditure fully.
Select the correct answer using the codes given below:
a) 1 and 2 only
b) 2, 3 and 4 only
c) 1, 2 and 3 only
d) 1, 2, 3 and 4
Answer: c) 1, 2 and 3 only
10. Which of the following were included by the Lakdawala Committee in poverty estimation?
- Health expenditure
- Education expenditure
- Calorie norms
- Luxury expenditure
Select the correct answer using the codes given below:
a) 1 and 2 only
b) 1, 2 and 3 only
c) 2 and 4 only
d) 1, 2, 3 and 4
Answer: b) 1, 2 and 3 only
11.Which of the following statements regarding the Tendulkar Committee are correct?
- It moved away from calorie-based poverty estimation.
- It considered education and health expenditure.
- Poverty estimation was based on consumption expenditure.
- It fixed the urban poverty line at ₹33 per day.
Select the correct answer using the codes given below:
a) 1 and 2 only
b) 2 and 3 only
c) 1, 2, 3 and 4
d) 1 and 4 only
Answer: c) 1, 2, 3 and 4
12. Consider the following statements regarding the Rangarajan Committee:
- Poverty estimation was based on monthly consumption expenditure.
- Rural poverty line was fixed at ₹32 per day.
- Urban poverty line was fixed at ₹47 per day.
- The committee completely ignored food expenditure.
Select the correct answer using the codes given below:
a) 1 and 4 only
b) 2 and 3 only
c) 1, 2 and 3 only
d) 1, 2, 3 and 4
Answer: c) 1, 2 and 3 only
13. Which of the following were included in the Rangarajan Committee method?
- Calories
- Proteins and fats
- Education and transport
- House rent
Select the correct answer using the codes given below:
a) 1 and 2 only
b) 3 and 4 only
c) 1, 2 and 3 only
d) 1, 2, 3 and 4
Answer: d) 1, 2, 3 and 4
14. Which of the following are limitations of the Rangarajan Committee method?
- Poverty is broader than hunger.
- It represents only minimum survival conditions.
- It guarantees a comfortable standard of living.
- Different schemes require different poverty measurements.
Select the correct answer using the codes given below:
a) 1 and 2 only
b) 1, 2 and 4 only
c) 2 and 3 only
d) 1, 2, 3 and 4
Answer: b) 1, 2 and 4 only
15. Human Development Index (HDI) includes which of the following indicators?
- Life expectancy
- Education
- Per capita income
- Military expenditure
Select the correct answer using the codes given below:
a) 1 and 2 only
b) 2 and 3 only
c) 1, 2 and 3 only
d) 1, 2, 3 and 4
Answer: c) 1, 2 and 3 only
16. Gender Inequality Index (GII) mainly measures:
- Inequality between men and women
- Gender-based deprivation
- Feminisation of poverty
- Military strength of countries
Select the correct answer using the codes given below:
a) 1 and 2 only
b) 1, 2 and 3 only
c) 2 and 4 only
d) 1, 2, 3 and 4
Answer: b) 1, 2 and 3 only
17. Which of the following indicators are used in the Global Hunger Index (GHI)?
- Child wasting
- Child stunting
- Infant mortality
- Undernourishment
Select the correct answer using the codes given below:
a) 1 and 2 only
b) 2 and 3 only
c) 1, 2 and 4 only
d) 1, 2, 3 and 4
Answer: d) 1, 2, 3 and 4
13. Effective poverty reduction in India requires:
- Inclusive economic growth
- Employment generation
- Better healthcare and education
- Balanced regional development
Select the correct answer using the codes given below:
a) 1 and 2 only
b) 2 and 3 only
c) 1, 2 and 4 only
d) 1, 2, 3 and 4
Answer: d) 1, 2, 3 and 4
III. ANSWER FOR DESCRIPTIVE QUESTIONS WITH 20WORD ANSWERS
1. Explain the meaning of dimensions of poverty.
Answer:
Dimensions of poverty include economic, social, regional, and human deprivation affecting living standards, opportunities, and overall human development.
2. Explain absolute poverty.
Answer:
Absolute poverty means inability to satisfy minimum basic needs like food, shelter, clothing, healthcare, and other survival requirements.
3. Explain relative poverty.
Answer:
Relative poverty compares poorer sections with richer groups regarding income, living standards, opportunities, education, and social security access.
4. What is social exclusion?
Answer:
Social exclusion prevents certain groups from participating fully in employment, education, social activities, and economic opportunities within society.
5. What is inequality?
Answer:
Inequality refers to unequal distribution of income, wealth, resources, and opportunities between rich and poor people in society.
6. Explain regional dimension of poverty.
Answer:
Regional poverty means poverty levels vary among states because of unequal industrial development, infrastructure, agriculture, and employment opportunities.
7. What is rural-urban disparity?
Answer:
Rural-urban disparity refers to differences in poverty, employment, infrastructure, and economic opportunities between villages and urban areas.
8. What was the main recommendation of Y. K. Alagh Committee?
Answer:
Y. K. Alagh Committee recommended measuring poverty through calorie intake requirements separately for rural and urban population groups.
9. Explain Lakdawala Committee.
Answer:
Lakdawala Committee improved poverty estimation by including calorie norms along with health and education expenditure measurements nationally.
10. Explain Tendulkar Committee.
Answer:
Tendulkar Committee shifted poverty estimation from calorie-based measurements toward consumption expenditure and cost of living standards.
11. Explain Rangarajan Committee.
Answer:
Rangarajan Committee estimated poverty using monthly consumption expenditure including essential food and non-food expenditure requirements comprehensively.
12. What were the components of Rangarajan poverty estimation method?
Answer:
Rangarajan method included food items like calories, proteins, fats and non-food expenses including education, transport, and house rent.
13. Explain Human Development Index.
Answer:
Human Development Index measures development using life expectancy, education levels, and per capita income indicators across countries globally.
14. What is Gender Inequality Index?
Answer:
Gender Inequality Index measures inequalities between men and women regarding health, empowerment, education, and economic participation opportunities.
15. Explain Global Hunger Index.
Answer:
Global Hunger Index measures hunger levels using undernourishment, child stunting, child wasting, and infant mortality indicators internationally.
16. Why is poverty considered multidimensional in India?
Answer:
Poverty in India involves economic deprivation, inequality, unemployment, social exclusion, and regional imbalance affecting human development significantly.
IV. ANSWER FOR Descriptive Questions: Write answers in about 150 and 250 words
Explain the multidimensional nature of poverty in India.
(150 Words)
Answer:
Poverty in India is a multidimensional problem that goes beyond lack of income. It includes economic, social, regional, and human deprivation. Economically, poor people suffer from unemployment, low income, hunger, and malnutrition. Socially, poverty creates exclusion where people cannot participate fully in education, employment, festivals, and other social activities. Inequality widens the gap between rich and poor as wealth becomes concentrated among a few sections of society.
Regional disparities also increase poverty because some states like Bihar and Uttar Pradesh have lower development and employment opportunities compared to states like Kerala and Punjab. Rural poverty is higher due to unprofitable agriculture, fragmented landholdings, and lack of employment opportunities. Poverty also causes migration from villages to cities, leading to slums and pressure on urban infrastructure. Therefore, poverty affects human dignity, opportunities, and quality of life, making it a serious developmental challenge for India.
Discuss poverty estimation committees in India and explain the limitations of poverty measurement.
(250 Words)
Answer:
India has formed several committees to estimate poverty and define the poverty line scientifically. The first major committee was the Y. K. Alagh Committee, which measured poverty on the basis of calorie intake. It recommended 2400 calories per day for rural areas and 2100 calories for urban areas. However, it assumed that education and healthcare would be provided free by the government.
The Lakdawala Committee improved this method by including health and education expenditure along with calorie norms. Later, the Tendulkar Committee shifted poverty estimation away from calorie-based measurement. It considered consumption expenditure and cost of living while including factors such as nutrition, health, education, electricity, and transport. It estimated about 21.5% of India’s population as poor.
The Rangarajan Committee further revised poverty estimation using monthly consumption expenditure. It included both food requirements like calories, proteins, and fats and non-food expenses such as education, transport, clothing, and house rent. According to this committee, poverty in India was estimated at 29.5% in 2011-12.
Despite these efforts, poverty measurement has several limitations. Poverty is broader than hunger and cannot be measured only through income or calorie intake. Different regions have different living costs and development levels. Poverty also includes social exclusion, inequality, lack of opportunities, and poor living conditions. Therefore, modern indicators like the Human Development Index (HDI), Gender Inequality Index (GII), and Global Hunger Index (GHI) are also used to understand poverty more comprehensively.
