Accordingly, the rural poverty has declined to Again the poverty ratio in urban areas has also declined to Moreover, the poverty ratio of the country as a whole has declined to These two sets of estimates may not be strictly comparable to the earlier estimates of poverty. Nonetheless, they provide clear evidence indicating a substantial decline in the overall poverty ratio in the country during the s. As per the recent estimate based on NSSO data, it is observed that in the country has million population living below the poverty line BPL ; out of which million live in rural areas and 67 million live in urban areas.
Thus the Planning Commission estimate of poverty on the basis of the NSSO data is the latest official estimates of poverty and non official estimates on poverty are available beyond this data. Economic Surveys for and , on the basis of the result of 55th round of NSSO, had indicated that there has been an impressive decline in the incidence of poverty in the s.
A Conclusion For Poverty
However, the extent of the actual decline in the proportion below the poverty line BPL between and has been a subject of an intense debate by academicians because of the change in methodology for collection of basic data in and possible non-comparability with earlier rounds of the consumer expenditure surveys.
Next official estimates of poverty incidence is based on the NSSO 61st round of large-scale sample survey in On the basis of the quinquennial large sample surveys on household consumer expenditure conducted by the National Sample Survey Organisation NSSO , incidence of poverty is estimated by the Planning Commission for the year Average per capita consumption expenditure for rural and urban population as per 61st Round 05 is Rs NSSO Data also reveals that rural population on an average spends about 55 per cent of its consumption on food and remaining 45 per cent on non-food items.
Tendulkar Constituted by the Planning Commission in December , which submitted its report in December The recomputed poverty estimates for the years and as recommended by the Tendulkar Committee have been accepted by the Planning Commission. As per the Tendulkar Committee Report, the national poverty line at prices was a monthly per capita consumption expenditure of Rs The above estimates of poverty line which refer to the national average, vary from state to state because of price differentials.
It its report, the Tendulkar Committee mentioned that the proposed poverty lines have been validated by checking the adequacy of actual private expenditure per capita near the poverty lines on food, education and health by comparing them with normative expenditures consistent with nutritional, educational and health outcomes. In order to have a two point comparison of changes in head count ratio, the Expert Group has again re-estimated poverty ratio for The head count poverty ratio for and as released earlier by the Planning Commission on the basis of Lakdawala Methodology and also by using by the Tendulkar Methodology are shown in Table It is observed that as per Lakdawala methodology, the poverty ratio in general in India declined from But as per Tendulkar methodology, the same poverty ratio declined from However, in respect of both these two methodologies, the extent of poverty reduction is not much different.
While the poverty ratio in India has declined from It may be observed that the success of some East Asian countries like China and Indonesia lies in faster average GDP economic growth being Moreover, the annual reduction in poverty ratio during the period was 0. The Planning Commission has updated the poverty lines and poverty ratios for the year as per the recommendations of the Tendulkar Committee using NSS 66th Round data from Household Consumer Expenditure Survey.
It has estimated the poverty lines at all India level as an monthly per capita consumption expenditure MPCE of Rs for rural areas and Rs for urban areas in Based on these cut-offs, the percentage of people living below the poverty line in the country has declined from Even in absolute terms, the number of poor people has fallen by Of this Accordingly, the total number of poor in the country has been estimated at The all India head count ratio HCR has declined by 7.
Some of the bigger states such as Bihar, Chhattisgarh and Uttar Pradesh have shown only marginal decline in poverty ratio, particularly in rural areas. These estimates of poverty made by the Planning Commission are based on methodology recommended by the Tendulkar Committee, which includes spending on health and education, besides calorie intake.
It is also observed that poverty has declined on an average by 1,5 percentage points per year between to The annual averages rate of decline during the period to is twice the rate of decline during the period to The Planning Commission has revised the estimates of poverty lines and poverty ratios for the year following the Tendulkar methodology using the NSS 68th Round data from Household consumer expenditure Survey.
Accordingly, the poverty line at all India level for is estimated at monthly per capita consumption expenditure MPCE of 7 Rs 27 per day for rural areas and Rs Rs 33 per day for urban areas. Based on these cut-offs the proportion of people living below the poverty line in the country has declined from In absolute terms there were However, this current estimate of poverty has triggered controversy among different people. Some groups argue that the poverty ratio of is too low and far from reality. However, the impact of economic growth, agricultural and industrial development and effect of rural uplift and rural employment schemes cannot be totally denied.
Thus it is observed that over a span of seven years the incidence of poverty declined from In India, recently, a serious poverty debate is going on which is related to the concept and the measurement of poverty. The current debate centres on the estimation of price deflators, reference period for survey and also for determining the basis of poverty line. Accordingly, the incidence of poverty is considered to be overestimated.
But, on the other hand, serious debate continued on the incidence of poverty after the release of official estimates of poverty by the Planning Commission for In this report it is found that between 94 and , overall poverty in India declined by 10 per cent and in rural areas by more than 10 per cent.
On this matter many scholars have questioned about the comparability of the and estimates due to the changes in the method of data collection. They observed that the incidence of poverty has been under estimated through over-reporting of expenditure by the surveyed households due to changes in the survey design. Two subsequent studies made by Sundaram and Tendulkar and Sen and Himangshu argued that such decline in the incidence of poverty between and would be in the range 7 per cent to 4. A high degree of poverty differentials among the various states of India has been continuing from the very beginning.
Although various measures were undertaken since the inception of planning for the eradication of poverty throughout the country and some degree of success has also been attained in reducing the poverty ratio in general among all the states but the high degree of poverty differentials still persist among different states of the country. State-wise poverty ratios have witnessed a secular decline from to The poverty is estimated from the state-specific poverty lines and the distribution of persons by expenditure groups obtained from the NSS data on consumption expenditure.
It is observed that though poverty has declined at the macro level, rural-urban and inter-state disparities at the poverty ratio are clearly visible. The state specific poverty ratios at the national and state levels and the poverty differentials among different states from to can be seen from Table It is observed that the poverty ratio both at the rural and urban level in different states has declined considerably but still a high degree of poverty differentials still exist between backward and relatively developed states of the country leading to mounting regional disparities.
The rural poverty ratio of relatively backward states in which were But the present poverty ratios of backward states are still very high as compared to that of relatively developed states like Punjab Thus, the rural poverty ratio is still relatively high in Orissa, Bihar and North Eastern states. But the combined poverty ratio of the backward states during the period to gradually declined from But the performance of few other states in this regard has been found quite satisfactory. Thus, while some states such as Punjab and Haryana have succeeded in reducing poverty by following the path of modernisation of agriculture and high agricultural growth, others have focused on particular areas of development, e.
The Approach Paper of the Tenth Plan also recorded the projections of poverty level at the end of Tenth Plan prepared by the plan panel. As per this projection, it is found that if macro-economic and sectoral projections for the Tenth Plan are achieved, the poverty ratio in India should fall to While the urban poverty ratio is expected to drop to The poverty projections further show that 90 per cent of the poor will be concentrated in eight states, such as Bihar, Madhya Pradesh, Orissa, Uttar Pradesh, West Bengal, Assam, Maharashtra and Rajasthan.
All India GDP growth targets of more than 8. Keeping in mind the migration factor from relatively poorer states to the prosperous ones, it has projected a poverty level of 2. As per the estimate made by the Planning Commission on the basis of NSSO data, , the poverty differentials among the different states of the country still persist at a wide level.
The Microcredit Foundation of India and Poverty in India
Orissa has the dubious distinction of having the maximum percentage of BPL population Other states with below 10 per cent BPL population are Goa 4. However in absolute terms, Uttar Pradesh has the highest number of those living below the poverty line at Thus wide inter-state disparities are visible in the poverty ratios between rural and urban areas as also in the rates of decline of poverty. Among major states like Orissa, Bihar, West Bengal and Tamil Nadu, more than 50 per cent of their population lived below the poverty line in By , while Tamil Nadu and West Bengal had reduced their poverty ratio by nearly half, Orissa and Bihar continued to be the two poorest states with poverty ratios of 47 and 43 per cent respectively.
In , 20 states and Union Territories had poverty ratios which were less than the national average. Among other states, Jammu and Kashmir, Haryana, Gujarat, Punjab, Andhra Pradesh, Maharashtra and Karnataka also succeeded significantly in reducing the incidence of poverty. As per the recent estimate made by the Planning Commission on the basis of NSSO data , the poverty differentials among different states of the country still persists at a wide leve. Among the states, orissa has again the dubious distinction of having maximum percentage of BPL population Thus there remains wide poverty differentials among the different states of India as per estimates.
This situation underscores the need for rapid growth of output and employment coupled with strengthening of the special programmes of poverty alleviation and employment generation. Thus this problem of poverty has to be dealt in the framework of the strategy of development laying emphasis on those sectors whose growth makes a significant impact on the income level of the underemployed. Thus the findings of the study made by Minhas, Dandekar and Rath, Bardhan and others revealed that most of the people living below the poverty line belonging to landless agricultural labour households with small holdings, land-less non-agricultural rural labour households and small land operators with les than 1 hectare of land holdings.
Fundamentally, they belong to the same class as the rural poor. However, as they live long enough in urban poverty, they acquire characteristics of their own. Little is known of their and labour in the growing cities. Thus the problem of poverty in India is quite chronic.
Inspite of 4 decardes of planning, the problem of poverty is still persisting in the country. Poverty is the common outcome of variety of desperate economic circumstances and a policy to tackle poverty must, of necessity, go beyond the concept of poverty. The need of discrimination is essential.
Although the problem of poverty has been persisting in India since the inception of planning but the serious programmes for the alleviation of poverty were introduced only in recent years. Poverty alleviation was accepted as one of the major objectives of planning since the Fifth Plan. IRDP is also being implemented by the Government since as a major instrument of its strategy to alleviate rural poverty. The objective of the programme is to assist poor families in developing skills and inputs to overcome their poverty.
So far The level of investment per family at the end of March was Rs 7, Again as per preliminary results of concurrent evaluation of IRDP carried out during September to February , about 50 per cent of assisted families could cross the poverty line of Rs 6, Moreover, providing skills to rural youth belonging to families below poverty line and also to enable them to take up self or wage employment, the Training of Rural Youth for self Employment TRYSEM was introduced in August A total of In and about 2. During the first four years of the Eighth Plan to , total number of youths trained was Under IRDP, all families in rural areas below the poverty line are eligible for assistance.
The EAS is now implemented in 3, backward blocks in the country. It aims at providing days of unskilled manual work up to two members of a family in the age group of 18 to 60 years normally residing in villages within the blocks covered under EAS. It is a need based programme hence no target of employment generation has been fixed. Under PMRY, total employment generated in was 0. The poverty ratio declined by nearly 10 percentage points in the 5 year period between to reach While tile proportion of poor in the rural areas declined from You may live in a cold country and I in a tropical country.
Arising from this, we can have variations in the amount of resources needed to achieve a given level of satisfactory human functioning. A great deal. Economists typically solve the identification problem by specifying the poverty line in the space of resources. The point is that when we specify some unique poverty standard in the space of resources, we do violence to the sensible notion that the norm ought to be specified absolutely in the space of functionings and—because of individual differences in the capacity to convert resources into functionings—in an interpersonally or inter-contextually relative or variable way in the space of resources.
This problem is an acute one, and accounts for the sort of widely differing estimates of poverty which we have seen are thrown up by official methods, on the one hand, and the method resorted to by economists such as Utsa Patnaik, on the other. Briefly, the identification problem, in much of mainstream practice, tends to preserve invariance of the poverty norm in the space of resources rather than of human functionings.
There is therefore a problem of logic involved here. Why not, then, specify the poverty line in terms of the pecuniary costs that would be entailed in achieving certain basic, satisfactory levels of human functionings in the matter, say, of nutrition, clothing, shelter, knowledge-attainment, and health status? This, in turn, would imply a massive practical problem of estimating, justifying, and collating myriads of poverty lines in income space.
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Apart from this forbidding practical difficulty, we also have a conceptual problem to deal with here. The question is: why not measure deprivation directly in the space of human functionings, by resorting to a number of so-called multidimensional measures of poverty which many economists have already advanced? When we speak of income poverty per se , there seems, therefore, to be a case for viewing income not as a means to an end, but as an end in itself, that is, to see the attainment of command over some satisfactory level of income as a desired human functioning, in and of itself.
If we wish to speak of poverty lines without risking an abuse of language, then we must see income as a means for achieving the end of some level of satisfactory human functioning , and this will entail avoiding the logical lapse of seeking invariance of the poverty line in the space of resources rather than functionings.
This, in turn, will beg the question of why we should not, instead, measure poverty directly in the space of human functionings with the help of multidimensional measures of deprivation. The problem would not arise if we thought of money-metric poverty as a matter of avoiding low incomes, as such. Philosophers use the term simpliciter to signify that which is simple, or straightforward, or means just what it says, or is absolute and unconditional.
Much of the preceding discussion amounts to no more than a plea for the use of an income poverty indicator simpliciter. The lower the value of Q , the greater—in some straightforward sense—is the extent of income poverty. The idea here is that when we speak of money-metric or income poverty, we focus directly on the income levels of the income-poorest sections of a population.
One way of tracking the performance of the quintile income statistic is to see how it compares with some rough assessment of the poverty line as it is understood by the Oxford English Dictionary.
The Rangarajan Expert Group proposed rural and urban poverty lines of Rs and Rs per person per month. Further, let us consider some simple computations that can be made from data on consumption expenditure in the National Sample Surveys of —94, —05, —10 and — If the ratio of the desired—to—actual Q is a quantity that displays an over-time declining trend of less than one, then that is a good sign for money-metric poverty. The trend is a prettily declining one for the headcount ratio, and a not so prettily increasing one for the desired-to-actual quintile income ratio. Our diagnosis of what is happening to poverty is unmistakably a function of how we choose to measure it.
My contention is that one way of measuring money-metric poverty which I have argued to be more persuasive than official procedures in this regard, suggests, at the least, two propositions that tend to get lost in the euphoria generated by official statistics: a that the decline in poverty is nowhere as dramatic as we have been led to believe is the case; and b that there is still a very great deal of harsh and unyielding money-metric poverty in the country.
In concluding this essay on the subject of the measurement of deprivation, one would like, finally, to allow oneself the luxury of abandoning the distant style of the dispassionate scientist in favour of a more human engagement with the subject. As it happens, this is an account of the world around him as he saw it in , by Thomas More in his book Utopia. Reproduction in whole or in part without permission is prohibited.
Poverty alleviation programmes in India - Wikipedia
Designed and Developed by Yodasoft. Skip to main content. It was started on 1 April The main aim of this programme was development of rural areas. Infrastructure like roads to connect the village to different areas, which made the village more accessible and also other social, educational schools and infrastructure like hospitals. Its secondary objective was to give out sustained wage employment. The village panchayats were one of the main governing body of this programme.
This scheme came into effect on 15 August The scheme provides pension to all old people who were above the age of 65 now 60 who could not fight for themselves and did not have any means of subsistence. This pension is given by the central government. The job of implementation of this scheme in states and union territories is given to panchayats and municipalities. The states contribution may vary depending on the state. It is a successful venture.
This scheme was started in August This scheme is sponsored by the state government. It was transferred to the state sector scheme after It is under the community and rural department. The breadwinner is defined as a person who is above 18 who earns the most for the family and on whose earnings the family survives. The NMBS is implemented by almost all states and union territories with the help of panchayats and municipalities. During — the total allocation of funds for this scheme was It is for families below the poverty line. Second instalmen t . This scheme was started by the government in — to provide food to senior citizens who cannot take care of themselves and are not under the National Old Age Pension Scheme NOAPS , and who have no one to take care of them in their village.
They mostly target groups of 'poorest of the poor' and 'indigent senior citizens'.