POVERTY AS

A
CHALLENGE
Class by DOUBTNUT
Introduction
We are going to study chapter 3rd of economics i.e
Poverty as a Challenge. This chapter deals with one of
the most difficult challenges faced by independent
India i.e poverty and after discussing this
multidimensional problem through examples, we can
easily understand the concepts of poverty, Causes of
poverty, as well as anti-poverty measures taken by the
government for this problem. The notes which we have
mentioned below comprise all the concepts
mentioned in the chapter.

1 Two Typical Cases of Poverty

2 Poverty as seen by social scientists

3 Poverty Line
4 Poverty Estimates

5 Inter-State Disparities

6 Global Poverty Scenario

7 Causes of Poverty

8 Anti-Poverty Measures

9 The Challenges Ahead

10 Short summary
11 Objective Type Questions

12 Very Short Questions 13 Short

Questions

14 Long Questions
1. Two Typical Cases of Poverty

Urban case
i) Ram Saran - daily-wage laborer in a wheat
flour mill near Ranchi in Jharkhand. Earns around
Rs 1,500 P.M when he finds employment.

ii) Support a family of 6, besides sending money

to his elderly parents. His wife & son also work, but
none of his 4 children can attend school.
iii) Family lives in a one-room rented house in the
outer areas of the city. Children are
undernourished, have very few clothes or footwear
& no access to healthcare.
Rural case
i) Lakha Singh- Landless laborer in a small village
near Meerut, U.P. He works for the big farmers,
earns Rs 50 per day. Sometimes he gets food grain
or other items instead of cash.
ii) Illiterate & a family of 8 live in a mud hutnear
the edge of the village. No access to healthcare,
cannot afford new clothes or even soap or oil.
A) These two typical cases illustrate many
dimensions of poverty.
i) Poverty means hunger and lack of shelter. ii) It is
a situation in which parents are unable to afford
their children’s education and healthcare.
iii) Poverty also means a lack of clean waterand
sanitation facilities.
iv) Lack of a regular job at a minimum
decentlevel.
v) Above all it means living with a sense
ofhelplessness.
B) Mahatma Gandhi view
One of the biggest challenges of independent India
has been to bring millions of its people out of abject
poverty. Mahatma Gandhi always insisted that
India would be truly independent only when the
poorest of its people become free of human
suffering.
 HELLO POINTS!
1. Dimensions of Poverty

i) Hunger and lack of shelter

ii) Parents are unable
to afford their children’s
education and healthcare.
iii) Lack of clean
water and sanitation facilities.
iv) Lack of a regular job.
v) It means living with a sense of helplessness.

2. Mahatma Gandhi view

Mahatma Gandhi always insisted that India would

be truly independent only when the poorest of its
people become free of human suffering.

3. Social Exclusion
Poverty must be seen in terms of the poor having to
live only in a poor surrounding with other poor
people, excluded from enjoying social equality of
better-off people in better surroundings.
4. Vulnerability
It describes the greater probability of certain
communities (say, members of a backward caste) or
individuals (such as a widow or a physically
handicapped person) of becoming, or remaining,
poor in the coming years

2. Poverty as seen by social scientists

A) Social scientists look it through various

indicators like:-

i) Level of income and consumption.

ii) Illiteracy level,
iii)Lack of general resistance due to malnutrition.
iv) Lack of access to healthcare.v) Lack of job
opportunities.
vi) Lack of access to safe drinking water, sanitation,
etc.

B) Most Common Indicators of Poverty

i) Social Exclusion
Poverty must be seen in terms of the poor having
to live only in a poor surrounding with other poor
people, excluded from enjoying social equality of
better-off people in better surroundings. ii)
Vulnerability
It describes the greater probability of certain
communities (say, members of a backward caste)
or individuals (such as a widow or a physically
handicapped person) of becoming, or remaining,
poor in the coming years.

3. Poverty Line
i) A common method used to measure poverty
is based on income or consumption levels.
ii) A person is considered poor if his or her
income or consumption level falls below a given
“minimum level” necessary to fulfill basic needs. iii)
Poverty line may vary with time and place. iv) Each
country uses an imaginary line to measure poverty.
v) For example, a person not having a car in the
United States may be considered poor. In India,
owning a car is still considered a luxury.

A) Determining the poverty line in India Minimum

levels of the following are basic for subsistence.
i) Food

ii)Clothingiii) Fuel & Light iv)

Education
v) Healthcare etc.
These physical quantities are multiplied by their
prices in rupees.
The present formula for food requirements
depending on age, sex, and the type of work that a
person does.
Average calorie requirement
Rural areas- 2400 calories per person per day.
Urban areas- 2100 calories per person per day.
People living in rural areas
engage themselves in more physical work, so
calorie requirements in rural areas are considered
to be higher than in urban areas.

B) National Sample Survey Organisation (NSSO).

i) For the year 2011-12, the poverty line for a
person was fixed at Rs 816 per month for the rural
areas and Rs 1000 for the urban areas. ii) The
poverty line is estimated periodically (normally
every five years) by conducting sample surveys. iii)
These surveys are carried out by the National
Sample Survey Organisation (NSSO).
HELLO POINTS!
i) A common method used to measure poverty is
based on income or consumption levels
ii) A
person is considered poor if his or her income or
consumption level falls below a given
“minimum level” necessary to fulfill basic needs.

The Present Formula for Food Requirement

The monetary expenditure per capita in terms of

food grains etc. Depending on age, sex, and the
type of work that a person does.

Average calorie requirement

i) Rural areas- 2400 calories per person per day.

ii) Urban areas- 2100 calories per person per day.

4. Poverty Estimates

i) The proportion of people below the poverty

line further came down to about 20% in 2011-12.
ii) The number of poor declined from
407.1million in 2004-05 to 269.3 million in 201112.
A) Vulnerable Groups
i) In India, the proportion of people below
thepoverty line is also not the same for all social
groups and economic categories.
ii) Average Indian poverty line is 22%.
iii)But, 43% of Scheduled caste and scheduled
tribe households are below the poverty line,
hence they are the most vulnerable social
groups.
iv) 50% of Rural agricultural labor households and
47% of urban casual labor households are below
the poverty line, & also they are the most
vulnerable groups in our society.
v) There is also inequality of incomes within
afamily. Women, elderly people & female
infants are denied equal access to resources
available to the family.

5. Inter-State Disparities
HELLO POINTS!
i) The number of poor declined from 407.1 million
in 2004-05 to 269.3 million in 2011-12.
ii)For the
year 2011-12, the poverty line for a person was
fixed at Rs 816 per month for the rural
areas and Rs 1000 for the urban areas.
iii)These
surveys are carried out by the National Sample
Survey Organisation (NSSO)
iv)
Average Indian poverty line is 22%.
v) But, 43% of Scheduled caste and scheduled
tribe households are below the poverty line.
vi)
50% of Rural agricultural labor households and
47% of urban casual labor households are below
the poverty line.

i) The proportion of poor people is not thesame in

every state.

ii) Recent estimates show that the states like

Madhya Pradesh, Assam, Uttar Pradesh, Bihar, and
Orissa had above all India poverty levels.
iii) Bihar and Orissa continue to be the twopoorest
states with poverty ratios of 33.7 and 37.6 %
respectively.
iv) Significant decline in poverty in Kerala,
Maharashtra, Andhra Pradesh, Tamil Nadu,
Gujarat, and West Bengal.

A) Some States’ Succession from Poverty.

a) Punjab and Haryana have succeeded withthe
help of high agricultural growth rates.
b) Kerala has focused more on human resource
development.
c) In West Bengal, land reform helped in
reducing poverty.
d) In Andhra Pradesh and Tamil Nadu
publicdistribution of food grains, responsible for
the improvement.

6. Global Poverty Scenario

i) The proportion of people living under poverty
in different countries is defined by the World Bank
as living on less than $1.90 per day.

ii) In the countries of South Asia (India, Pakistan,

Sri Lanka, Nepal, Bangladesh, Bhutan) the decline
has not been as rapid.
iii) Poverty in India is also shown higher than the
national estimates. iv) In Latin America, the ratio of
poverty has declined from 11% in 1981 to 6.4% in
2008.
v) In Sub-Saharan Africa, poverty in fact declined
from 51% in 2005 to 41% in 2015.
HELLO POINTS!
i) The proportion of people living under poverty in
different countries is defined by the World Bank as
living on less than $1.90 per day.
ii) In Latin
America, the ratio of poverty has
declined from 11% in 1981 to 6.4% in 2008.
iii) In
Sub-Saharan Africa, poverty in fact declined from
51% in 2005 to 41% in 2015.
7. Causes of Poverty

A) Low level of economic development under the

British colonial administration
i)The policies of the colonial government ruined
traditional handicrafts and discouraged the
development of industries like textiles, hence the
low rate of growth persisted until the 18th-19th.

ii) Low growth rate resulted in fewer job

opportunities and a low growth rate of incomes.
iii) There is also one more reason for poverty, the
Rapid growth rate of the population.
iv) The failure at both the fronts: promotion of
economic growth and population control
perpetuated the cycle of poverty.

B) Some hopes but not enough to all.

i) The Spread of irrigation and the Green
revolution, created many job opportunities in the
agriculture sector, but only in some states. ii) New
emerging Industries in the Public and the private
sector both did provide some jobs, but
unemployment was still common, many people
started working as rickshaw pullers, vendors,
construction workers, domestic servants, etc.

C) Other Main Reasons of Poverty

i) Another feature of high poverty rates has been
the huge income inequalities. ii) Unequal
distribution of land and other resources.
iii) Major policies lack implementation: thus,
proper implementation of policy could have
improved the lives of millions of rural people. iv)
Poor people hardly have any savings. So they
borrow when they have some needs. And because
of poverty, they become unable to repay, hence
become victims of indebtedness.
HELLO POINTS!
Low level of economic development under the
British colonial administration-Low growth rate
resulted in fewer job opportunities and a low
growth rate of incomes.

i) Huge income inequalities.

ii) Unequal
distribution of land and other resources.
iii) Major policies lack
implementation.
iv) Poor
people hardly have any savings. So they
borrow & become victims of indebtedness.

8. Anti-Poverty Measures

The current anti-poverty strategy of the

government is based, broadly on two Ranks: (1)
Promotion of economic growth
(2) Targeted anti-poverty programs.

(1). Promotion of economic growth

i) Economic growth widens opportunities and
provides the resources needed to invest in human
development. Hence, there is a strong link
between economic growth and poverty reduction.
ii)This also encourages people to send their
children, including the girl child, to schools in the
hope of getting better economic returns from
investing in education.
iii) However, the poor may not be able to take
direct advantage from the opportunities created by
economic growth.

(2). Targeted anti-poverty programs.

Some of the schemes which are formulated to
affect poverty directly or indirectly are:
A) Mahatma Gandhi National Rural
Employment Guarantee Act, 2005 :–
i) Aims to provide 100 days of wage
employment to every household to ensure
livelihood security in rural areas.
ii) Also aimed at sustainable development
toaddress the cause of drought, deforestation, and
soil erosion.
iii) One-third of the proposed jobs have
beenreserved for women.

B) Prime Minister Rozgar Yojana (PMRY):

Started in 1993.
AIM- is to create self-employment opportunities
for educated unemployed youth in rural areas and
small towns.They are helped in setting up small
businesses and industries.

C) Rural Employment Generation

Programme (REGP), launched in 1995. AIM-
Create self-employment opportunities in rural
areas and small towns. A target for creating 25 lakh
new jobs has been set for the program under the
Tenth Five Year plan.

D) Swarnajayanti Gram Swarozgar Yojana

(SGSY), Since 1999.
Aims- Bringing the assisted poor families above the
poverty line by organising them into self-help
groups, through a mix of bank credit and
government subsidy.

E) Pradhan Mantri Gramodaya Yojana

(PMGY), launched in 2000.
AIM- Additional central assistance is given to states
for basic services such as primary health, primary
education, rural shelter, rural drinking water and
rural electrification.

Results of these programs

i) Less effective- lack of proper implementation
and right targeting.
ii) There has been a lot of overlapping of
schemes.
iii) Despite good intentions, the benefits ofthese
schemes are not fully reached to the deserving
poor.
iv) Therefore, the major emphasis in recentyears
is on proper monitoring of all the poverty
alleviation programs.

HELLO POINTS!
A) Mahatma Gandhi National Rural Employment
Guarantee Act, 2005:–

i) Aim- to provide 100 days of wage employment to

every household to ensure livelihood security in
rural areas.

B) Prime Minister Rozgar Yojana (PMRY):

Started in 1993.

Aim- to create self-employment opportunities for

educated unemployed youth in rural areas and
small towns.
C) Rural Employment Generation Programme
(REGP), launched in 1995.
Aim- A target for creating 25 lakh new jobs has
been set for the programme under the Tenth Five
Year plan.

D) Swarnajayanti Gram Swarozgar Yojana

(SGSY), Since 1999.
Aim- Bringing the assisted poor families above the
poverty line by organising them into self-help
groups, through a mix of bank credit and
government subsidy.

E) Pradhan Mantri Gramodaya Yojana

(PMGY),launched in 2000.
AIM- Additional central assistance is given to
states for basic services such as primary health,
primary education, rural shelter, rural drinking
water and rural electrification.
Results of these programs
i) Less effective- lack of proper
implementationand right targeting.
ii) Despite good intentions, the benefits of
theseschemes are not fully reached to the deserving
poor.

9. The Challenges Ahead

i) Poverty reduction is still a major challenge in

India, due to the wide differences between regions
as well as rural and urban areas. ii) Further, Poverty
should include not only the matter of the adequate
amount of food, but other factors like education,
healthcare, shelter, job security, gender, equality,
dignity and so on.

iii) These give us the concept of human poverty.

Poverty reduction is expected to be lower in the
next 10-15 years. iv) In addition to anti-poverty
measures, the government should focus on the
following to reduce poverty.
a) Higher economic growth.
b) Universal free elementary education.
c) The decrease in population growth.
d) Empowerment of women and weaker sections.

HELLO POINTS!
Further, Poverty should include not only the matter
of the adequate amount of food, but other factors
like education, healthcare, shelter, job security,
gender, equality, dignity and so on.

The government should focus on the following to

reduce poverty.
a) Higher economic growth.
b) Universal free elementary education.
c) The decrease in population growth.
d) Empowerment of women and weaker sections.
SHORT SUMMARY

This chapter defines that lack of daily requirements

of livelihood like food, clothing, education,
healthcare, etc. is known as poverty

We came to know that Social scientists measure

poverty using many indicators like the levels of
income and consumption, illiteracy level, lack of
access to safe drinking water, sanitation,
healthcare, etc.

Then we read about the indicators of poverty such

as Social exclusion, Vulnerability, and Poverty line.

From the middle of the chapter, we read about

the present formula for food requirement while
estimating the poverty line is based on the desired
calorie requirement and poverty estimates which
imply the poverty ratios in India have declined from
45% in 1993-94 to 37.2% in 2004-05.
 Scheduled Caste and Scheduled Tribe are most
vulnerable to poverty, among social groups
whereas Rural agricultural labor households and
urban casual labor households are most vulnerable
among the economic groups.

We learned about the causes of poverty i.e., what

factors cause the poverty, In India, poverty
propagated due to the failure of economic growth
and population control, the low rate of per capita
income, and Huge income inequality is another
cause of high poverty rates.

In order to reduce the poverty some initiatives

have been taken by the government such as initiate
the programs i.e., Mahatma Gandhi National Rural
Employment Guarantee Act, 2005, Prime Minister
Rozgar
Yojana (PMRY), Rural Employment Generation
Programme (REGP), Swarnajayanti Gram
Swarozgar Yojana (SGSY), Pradhan Mantri
Gramodaya Yojana (PMGY)
OBJECTIVE TYPE QUESTIONS

1.Which one from the following states is above

the national average of poverty ratio?
(a) West Bengal
(b) Tamil Nadu
(c) Andhra Pradesh
(d) Karnataka
Answer- (a) West Bengal

2. Which country of South-East Asia made rapid

economic growth?
(a) India
(b) China
(c) Nepal
(d) Pakistan
Answer- (b) China

3. Which one are not the major causes of income

inequality in India? (a) Unequal distribution of land
(b) Lack of fertile land
(c) Gap between rich and the poor
(d) Increase in population
Answer- (b) Lack of fertile land

4. Which one of the social groups is vulnerable to

poverty? (a) Scheduled caste
(b) Urban casual labour
(c) Rural agricultural households
(d) All the above
Answer- (d) All the above

5. NFWP is stand for:

(a) National Federation for Work and Progress
(b) National Forest for Wildlife Protection
(c) National Food and Wheat Processing
(d) National Food for Work Programme
Answer- (d) National Food for Work
Programme

6. Which scheme was started in 1993 to create

self-employment opportunities for educated
unemployed youth in rural areas and small
towns?
(a) Prime Minister Rojgar Yojana
(b) National Rural Employment Guarantee Act
(c) Rural Employment Generation Programme
(d) Swarnajayanti Gram Swarojgar Yojana
Answer- (a) Prime Minister Rojgar Yojana

7. Which among the following is the method to

estimate the poverty line?
(a) Investment method
(b) Income method
(c) Capital method
(d) Human method
Answer- (b) Income method

8.Who do not come under the category of urban

poor?
(a) The casual workers
(b) The unemployed
(c) The shopkeeper
(d) Rickshaw Pullers
Answer- (c) The shopkeeper
9. When was the National Rural
Employment Guarantee Act passed?
(a) September 2005
(b) August 2004
(c) May 2009
(d) None of these
Answer- (a) September 2005

10. Which state has the largest percentage of

poors in India?
(a) Bihar
(b) Orissa
(c) Kerala
(d) Punjab
Answer- (b) Orissa

VERY SHORT QUESTIONS

Q1 What is poverty?
Answer- Poverty is a situation in which a person is
unable to get the minimum basic necessities of life,
i.e., food, clothing and shelter for his or her
sustenance.

Q2 What is the poverty line?

Answer- Poverty line is an indicator of poverty, i.e.,
it is a level of income which barely meets
sustenance.

Q3 Who is an urban poor?

Answer- An urban poor is a person who has an
income of ₹ 1,000 per month and in terms of
calories, has a requirement of 2,100 calories per
person per day.

Q4 Name any two social groups which are most

vulnerable to poverty?
Answer-Scheduled Caste(SC) and Scheduled
Tribe(ST).

Q5 Name the Act through which a poor person can

get 100 days assured employment.
Answer- National Rural Employment
Guarantee Act.
Q6 State two important types of poverty?
Answer- The two types of poverty are
Absolute poverty and Relative poverty.

Q7 Mention any one historical reason for poverty?

Answer- Low level of economic development
under the British.

Q8 Name a scheme which was launched to create

self-employment opportunities for the educated
youth in the rural areas.
Answer- The Prime Minister Rozgar Yojana.

Q9 Why does inflation hit the poor hard?

Answer- Due to inflation the price of a commodity
is increased and this affects the purchasing power
of the poor.

Q10 Who is poor?

Answer- Any person who is deprived of food,
clothes, shelter, education, health care and
economic activity is poor.
SHORT QUESTIONS

Q1 What are the major objectives of the Prime

Minister Rozgar Yojana?
Answer- (i) The Yojana was launched in 1993. (ii)
The aim of the programme is to create self-
employment opportunities for educated
unemployed youth in rural areas and small towns.
(iii) Under this unemployed are helped in setting up
small businesses and industries.

Q2 “Poverty is a curse upon humanity.” Explain it?

Answer- poverty is a curse upon humanity’
because the poor cannot afford belly-full meals a
day.
(i) The poor do not have a proper roof ontheir
heads to protect themselves from cold, rain and
heat.
(ii) Basic essentials like clothing, oil and soapetc.
are missing in the daily routine of the poor. They
cannot afford a minimum subsistence level of
living.
(iii) Sick members of the family suffering
fromserious ailments like TB, cancer etc. cannot be
looked after in the absence of medication. (iv) The
absence of savings on account of very low income,
the poor fall an easy prey to indebtedness.

Q3 What do you understand by human poverty?

Answer- Many scholars advocate that we must
broaden the concept of poverty into human
poverty. A large number of people may have been
able to feed themselves. But they do not have
education or shelter or health care or job security
or self-confidence. They are not free from caste
and gender discrimination. The practice of child
labour is still common.

Q4 Describe how the poverty line is estimated in

India?
Answer- A person is considered poor if his or her
income or consumption level falls below a given
“minimum level” necessary to fulfil the basic
needs. In India, the poverty line is estimated by
multiplying the prices of physical quantities like
food, clothing, footwear, fuel, light, education, etc.
in rupees.The numbers involved in determining the
poverty line vary for different years. Also, the
poverty line for rural areas is different from that of
the urban areas because the work, lifestyle and
expenses are different for rural and urban areas.

Q5 Define ‘Vulnerability’. How is it determined?

Answer- Vulnerability refers to a measure
describing the greater probability of certain
communities like people belonging to backward
castes, handicapped persons, old women etc.
becoming or remaining poor in the coming years. It
is determined by the options available to different
sections of the society to have an access to an
alternative living in terms of assets, education,
health, and job opportunities, when confronted
with any kind of disaster or calamity.

Q6 Describe poverty trends in India since 1973?

Answer- The trends in poverty since 1973 are (i)
There is a substantial decline in poverty ratio from
55% in 1973 to 44.3% in 1993 and 21.9% in 2011-
12.
(ii) Rural poverty has declined sharply from 56% in
1973 to 25.7% in 2011-12 and the numbers from
261 million to 216.5 million. (iii) The latest
estimates indicate a significant reduction in the
total urban and rural number of poor to be about
269.3 million, down from 321 million in 1973.

Q7 Discuss the major reasons for poverty in India?

Answer- (i) Lack of industrialisation: India is very
backward from the industrial point of view. Hardly
3 percent of the total working population is
engaged in the large- scale industry.
(ii) Over dependence on agri-culture: Even after
more than 60 years of independence more than 60
per cent of our total population still depends on
agriculture for its livelihood. Due to shortage of
inputs, our agriculture is backward.
(iii) Inflationary pressure: Upward trend in prices
adversely affects the poor sections of the society.

Q8 Give an account of interstate disparities of

poverty in India?
Answer- 1.The proportion of people is not the
same in every part of India.
2. Government has introduced many schemes to
remove it but the success ratio is different.
3.In 20 states the poverty ratio is less than the
national Average.
4. It is still a serious problem in
Orissa,Tripura,UP and Bihar.
5.Ther is significant decline in West Bengal,Jammu
Kashmir.

Q9 Identify the social and economic groups which

are most vulnerable to poverty in India?
Answer- Social groups, which are most vulnerable
to poverty, are scheduled caste and scheduled
tribe households. Similarly, among the economic
groups, the most vulnerable groups are the rural
agricultural labour households and urban casual
labour households.

Q10 Give an account of the inter-state disparities

in poverty in India?
Answer- States with a poverty ratio more than the
national average: Orissa, Bihar, Assam, Tripura and
Uttar Pradesh are the most poverty ridden states
of India. The poverty ratio in these states is much
higher than the national average. Orissa and Bihar
are the poorest states with a poverty ratio of 47
and 43 respectively. Most of these states are facing
rural as well as urban poverty. States with low
poverty ratio such as Punjab, Haryana, Goa,
Himachal Pradesh and Jammu Kashmir have a very
low percentage of population living below the
poverty line.

LONG QUESTIONS
Q1 There is a strong link between economic
growth and poverty reduction.” Explain it?

Answer- (i) Over a period of thirty years lasting up

to the early eighties, there was little per capita
income growth and not much reduction in poverty.
Official poverty estimates which were about 45 per
cent in the early 1950s remained the same even in
the early eighties.
(ii) Since the eighties, India’s economic growth has
been one of the fastest in the world. The growth
rate jumped from the average of about 3.5% a year
in the 1970s to about 6 % cent during the 1980s and
1990s. The higher growth rates have helped
significantly in the reduction of poverty. (iii)
Economic growth widens opportunities and
provides the resources needed to invest
in human development

Q2 Write a note on Global Poverty Scenario?

Answer- As studied by World Bank, following are
the features of global poverty scenario (i) The
proportion of people in developing countries living
in extreme economic poverty defined by the World
Bank as living of less than $ 1.25 per day has fallen
from 43% in 1990 to 22% in 2008.
(ii) Poverty declined substantially in China
andSouth-East Asian countries as a result of rapid
economic growth and massive investment in
human resource development.
(iii) In the countries of South Asia, the declinehas
not been as rapid.
(iv) In Sub-Saharan Africa, poverty in fact declined
from 51% in 1981 to 47% in 2008. (v) In Latin
America, the ratio of poverty remained the same.
(vi) Poverty has also resurfaced in some of the
former socialist countries like Russia, where
officially it was non-existent earlier.

Q3 What are the main features of the National

Rural Employment Guarantee Act 2005?
Answer- The mainThe main features of the
National Rural Employment Guarantee Act 2005
are mentioned below:
(i)The NREGAs 2005 was passed in September
2005.
(ii)The act provides 100 days assured employment
to every rural household in 200 districts.
(iii)The central government will also establish
National Employment Guarantee funds. (iv)Later,
the scheme will be extended to 600 districts. One
third of the proposed Jobs would be reserved for
women.
(v)Under the programme, if an applicant is not
provided employment within 15 days, he / she will
be entitled to a daily unemployment allowance.
features of the National Rural Employment
Guarantee Act 2005 are mentioned below:

Q4 Describe how the poverty line is estimated in

India?
Answer- Removal of poverty is one of the major
objectives of the Indian developmental strategy.
The current government strategy of poverty
alleviation is based on two planks:
Promotion of Economic Growth
Targeted Anti-poverty Programmes
Some of the targeted anti-poverty programmes
undertaken by the government are:
Prime Minister’s Rozgar Yojana (PMRY). This
programme was started in 1993. It aims at creating
self-employment opportunities for educated
unemployed youth in rural areas and small towns.
Pradhan Mantri Gramodaya Yojana (PMGY). This
programme was launched in 2000. It aims at
creating and improving basic services like primary
health, primary education, rural shelter, rural
drinking water and rural electrification.
Rural Employment Generation Programme
(REGP). This programme was launched in
1995. It aims at creating self-employment
opportunities in rural areas and urban towns.
Mahatma Gandhi National Rural
Employment Guarantee Act (MGNREGA).
This act was passed in September 2005. The act
provides 100 days assured employment every year
to every rural household in 200 districts. Later, the
scheme would be extended to 600 districts. One-
third of the proposed jobs

Q5. Describe the current government strategy of

poverty alleviation?
Answer- The current government strategy of
poverty alleviation is based on two main pillars:-
1. Promotion of economic growth India’s
economic growth has gained momentum since
1980 and from then it became one of the fastest in
the world.the growth rate almost doubled from the
year 1970 to 1980-1990.The higher growth rate has
significantly helped in the reduction of
poverty.economic growth strengths people to help
them to get rid of poverty.
2.Targeted anti-poverty programs
(i) National Rural Employment Guarantee
Act2005(NREGA).
(ii) National Food to Work Act 2004(NFWP).
(iii) Prime Minister Rojgar Yojana 1993.
(iv) Antyodaya Anna Yojana.