Poverty and related issues in India

 

Nawaz Ahmed Naik

Research Scholar, Ph.D, A.P.S University Rewa, Rewa, Madhya Pradesh, India.

*Corresponding Author E-mail: Nawaznaik1234@gmail.com

 

ABSTRACT:

Poverty is a complex and multifaceted issue that continues to afflict societies worldwide, transcending geographical boundaries and affecting individuals from diverse backgrounds. This abstract seeks to provide a brief overview of the various dimensions of poverty, examining its causes, impacts, and potential solutions. Poverty is a complex and persistent challenge that demands urgent attention from policymakers, Civil society organizations and individuals alike. By understanding the multifaceted nature of poverty and working together to implement sustainable solutions, We can move closer to a world where everyone has the opportunity to thrive and fulfill their potential.

 

KEYWORDS: Rural poverty, Determinants of poverty, livelihood.

 

 


INTRODUCTION:

Poverty has become a general phenomenon that is perceived to mean different things to different people at different times and places. Ogwumike (2001) defined poverty as a situation where a household or an individual is unable to meet the basic necessities of life, which include consumption and non-consumption items, considered as minimum requirement to Sustain livelihood. Oguwumike (2001) and Odusola (2001) referred to poverty as a condition of deprivation which could be in form of social inferiority, Isolation, Physical weakness, Vulnerability, Powerlessness and Humiliation. In India, Poverty reduction is one of the major objectives of economic development programmes. Though India was the first country in the world to define poverty as the total per capita expenditure of the lowest expenditure class, which is required to ascertain a minimum intake of 2400 kcal/day in rural and 2100 kcal/day in urban areas.

 

The same is converted into financial terms and the poverty line is defined as a minimum level of income or expenditure, which is periodically updated. The latest updated poverty line is Rs.356.30 in rural areas and Rs.538.60 in urban areas in 2004-05 (Planning Commission, 2007). There exists a substantial interstate and urban rural differential in the cost of goods and services. One in three Indians lives below the poverty line according to the Tendulkar Committee report which used a measurement of goods and services, rather than calorie intake, to calculate poverty. The World Bank estimates that 80% of India's population lives on less than $2 a day which means a higher proportion of its population lives on less than $2 per day as compared with sub-Saharan Africa. There has been no uniform measure of poverty in India. The Planning Commission of India has accepted the Tendulkar Committee report which says that 37% of people in India live below the poverty line.

 

World Bank (1994) recognized that poverty is not only a problem of low incomes; rather, it is a multi-dimensional problem that includes low access to opportunities for developing human capital and to education.

 

As UNDP (1996) commented, income poverty is only a part of the picture. Just as human development encompasses aspects of life much broader than income, so poverty should be seen as having many dimensions and accordingly developed the concept of human poverty. It observed that human poverty is more than income poverty: it is a denial of choices and opportunities for living a tolerable life (UNDP, 1997).

 

According to Sen (1999), ‘real’ poverty can be sensitively identified in terms of capability deprivation: deprivations that are intrinsically important, unlike low 3 income, which is only instrumentally significant. Sen distinguishes between income poverty and capability poverty; and argues that the later is obviously more important. Capability poverty refers to deprivation of opportunities, and choices and of entitlements. Poverty is a widely respected indicator of well‐being, which is used to make comparisons of poverty over time and between spatial and social groups for the purposes of policy analysis. Several studies of Indian villages to determine why households descent into poverty (Krishna 2004.

 

Krishna et al., 2005, Krishna (2006) find that in a majority of cases of decline into poverty, three principal factors are at work: health expenses, high-interest private debt, and social and customary expenses. Poverty and Socio-Economic Indicators Socio-economic indicators provide a background to understanding the poverty scenario in a country. These indicators provide data on education, gender, poverty, housing, amenities, employment and other economic indicators. These indicators for the country as well as states will help in identifying the linkages between socio-economic indicators and achievement of health goals.

 

Gang et al. (2007) reveals that the incidence of poverty in Scheduled Caste (SC) and ST (Scheduled Tribe) households is much higher than among non scheduled households. There is a non-linear relationship between age and poverty incidence across all three social groups, with the poverty rate increasing as we move from age group 20-29 to 30-39, and then decreasing for ages 40 years and above. Poverty increases with household size, highest poverty rates observed among households that have seven or more members. While literacy is negatively related to the incidence of poverty, the negative correlation between educational attainment and poverty incidence seems weaker for SC households as compared to ST and non-scheduled households. There was a higher incidence of poverty among agricultural laborers across all three social groups as compared to other occupations. The SC and ST households had a lower mean age for the head of the household and smaller (mean households size) as compared to non-scheduled households. A much higher proportion of SC and ST households were not literate compared with non-scheduled households. With respect to occupation, a majority of SC households (54 percent) were engaged as agricultural laborers, however this proportion is lower in ST households (44 percent) are agricultural laborers followed by non-scheduled households (38 percent).

 

Deshingkar (2010) based on experience of Andhra Pradesh (AP) and Madhya Pradesh (MP) argued that migration is higher among chronically poor groups living in Remote Rural Areas (RRAs). It plays an important role in managing risk and improving standards of living and household wellbeing. Although it is impossible to say that the poor have become non-poor as a result of migration, because of the difficulties of measuring poverty and multiple deprivations, the overall impact of migration in terms of being able to repay debts faster, being able to eat more regularly, being able to spend on education, health, agriculture and housing and being able to borrow large sums when needed has been positive and has raised the social and economic status of migrant households. However, these positive impacts come at a cost, because migration increases the risk of injury and exposure to disease and noxious substances, as well as the negative impacts of long separation from ones family. Migration rates vary across caste groups and villages, with the highest incidence among chronically poor people living in remote villages. Overall mobility levels have grown: in AP the number of households with at least one person working outside the village increased from 41% in 2003/04 to 54% in 2006/07. Corresponding figures were 42% and 52% in MP. In remote villages, migration involved all but broad base of migration has resulted in its benefits accruing to a large number of households, challenging the notion that migration benefits only a privileged few with the right contacts, assets and education. Circular migration earnings account for a higher proportion of household income among the lower castes and tribes, namely the SC, BC and ST (in households with one person working outside the village). Migration is critical to managing risk and smoothing consumption for a majority of chronically poor households living in RRAs. The extra income from migration has allowed the family to eat regularly and better, pay for health care when needed and spend on social events. Migration has improved the creditworthiness of the families left behind in the village who can now obtain large loans easily. For many chronically poor households, migration provides a way of ‘coping’ without graduating out of poverty altogether. Such migrants are usually in the lowest paid 3D jobs (dirty, dangerous and degrading), characterised by poor employment conditions, debt bondage and recruiting agents, limited personal freedom, restricted access to information and violation of human rights. Women and children from SC and ST households are often employed on the worst terms and are the most vulnerable to exploitation.

 

Causes of Poverty:

The causes of poverty are manifold, encompassing economic, social, and political factors. Economic disparities, lack of access to education and healthcare, inadequate infrastructure, and systemic inequalities all contribute to the perpetuation of poverty. Furthermore, global trends such as climate change and economic globalization have exacerbated poverty in many regions, pushing vulnerable populations further into deprivation.

 

The impacts of poverty are far-reaching and profound, affecting individuals, families, and communities in profound ways. Poverty is not merely a lack of financial resources but also a deprivation of opportunities, dignity, and basic human rights. It leads to malnutrition, limited access to education, poor health outcomes, and a cycle of intergenerational poverty that is difficult to break. Addressing poverty requires a comprehensive approach that tackles its root causes while providing immediate relief to those in need. Policies that promote economic empowerment, social inclusion, and access to essential services are critical in alleviating poverty. Investments in education, healthcare, infrastructure, and social protection can help create pathways out of poverty and ensure a more equitable society.

 

Poverty Related Issues and Challenges:

Poverty remains a significant issue in India despite economic growth and development in recent decades. Several key factors contribute to this persistent problem:

1.     Income Inequality: There is a wide gap between the rich and the poor in India. A significant portion of the population still struggles to meet basic needs due to low-income levels.

2.     Unemployment and Underemployment: Many Indians, particularly in rural areas, face challenges in finding stable and adequate employment. The informal sector employs a large portion of the workforce, often without job security or benefits.

3.     Rural-Urban Divide: Rural areas typically face higher levels of poverty compared to urban areas. Lack of infrastructure, healthcare, education, and employment opportunities in rural regions exacerbate poverty.

4.     Lack of Education: Limited access to quality education perpetuates poverty across generations. Without proper education, individuals find it difficult to secure better-paying jobs or break out of the cycle of poverty.

5.     Healthcare Access: Poor health outcomes due to inadequate healthcare facilities and services contribute to poverty. High medical expenses often push families further into poverty, especially in emergencies.

6.     Social Discrimination: Marginalized communities such as scheduled castes, tribes, and minorities face systematic discrimination, limiting their access to resources and opportunities.

7.     Regional Disparities: Poverty rates vary significantly across different states and regions within India. Some states in the north and central regions have higher poverty rates compared to more developed southern states.

8.     Vulnerability to Shocks: Natural disasters, economic downturns, and global crises like the COVID-19 pandemic disproportionately affect vulnerable populations, pushing many further into poverty.

9.     Government Policies: While government initiatives like rural employment schemes (e.g., MNREGA), subsidized food programs (e.g., PDS), and financial inclusion efforts (e.g., Jan Dhan Yojana) aim to alleviate poverty, implementation challenges and corruption can hinder their effectiveness.

10. Population Growth: India's large and growing population poses a challenge in eradicating poverty, as it puts pressure on limited resources and job opportunities.

 

Efforts to address these issues require comprehensive strategies focusing on economic growth, social development, equitable distribution of resources, and inclusive policies that uplift the most vulnerable sections of society.

 

How to Overcome from Poverty:

Overcoming poverty can be a complex and challenging journey, but here are some steps that can help:

1.     Set Clear Goals: Define what you want to achieve financially and personally. Having clear goals gives you direction and motivation.

2.     Education and Skills Development: Invest in your education or skill development. Acquiring new skills or improving existing ones can enhance your employability and earning potential.

3.     Financial Planning: Create a budget to manage your finances effectively. Track your income and expenses to ensure you are living within your means and saving where possible.

4.     Seek Employment or Entrepreneurship: Look for job opportunities that match your skills and interests. Consider entrepreneurship if you have a business idea or a skill you can monetize.

5.     Build a Support Network: Surround yourself with supportive people who can provide guidance, advice, and encouragement during tough times.

6.     Utilize Resources: Take advantage of government programs, community resources, or nonprofit organizations that offer assistance with job training, housing, or financial literacy.

7.     Save and Invest: Start saving money regularly, even if it's a small amount. Explore investment options that can help your money grow over time.

8.     Manage Debt: If you have debt, create a plan to pay it off systematically. Avoid accumulating more debt than you can handle.

9.     Stay Persistent and Patient: Overcoming poverty takes time and persistence. Stay focused on your goals and be patient with yourself as you work towards improving your situation.

10. Mindset and Attitude: Develop a positive mindset and believe in your ability to create change. Stay motivated and resilient in the face of challenges.

 

Remember, overcoming poverty is often a gradual process that requires commitment and perseverance. It may involve taking small steps initially but can lead to significant improvements in your life over time.

 

REFERENCES:

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9.      J. Jalan and M. Ravallion. 2002. Geographic Poverty Traps? A Micro Model of Consumption Growth in Rural China. Journal of Applied Econometrics. 17 (4). M. Ravallion and G. Datt. 2001. Why Has Economic Growth Been More Pro-Poor in Some States of India than Others? Available at http://econ.worldbank.org/ programs/ poverty/topic/2543/library/doc?id=2715.

10.   Sawada 2000. 15. ADB. I. Ali and E. Pernia. 2003. Infrastructure and Poverty Reduction: What is the Connection? ERD Policy Brief No. 13. Economics and Research Department. Asian Development Bank. They cite...prove their point.

 

 

 

Received on 20.06.2024         Modified on 10.07.2024

Accepted on 25.07.2024      ©AandV Publications All right reserved

Res.  J. Humanities and Social Sciences. 2024;15(3):245-248.

DOI: 10.52711/2321-5828.2024.00036