Name : Krishna Kumar Mahato

CLASS : 9 Commerce
ROLL NO. : 10
Subject : Economics
 INDEX
1. INTRODUCTION
2. POVERTY IN INDIA
3. CAUSES OF POVERTY
4. LACK OF LITERCY
5. GOVERNMENT INITATIVE
6. SOCIAL MARKET OF POVERTY
7. RECOMMENDATION
8. CONCLUSION
9. ACKNOWLEDGEMENT
10. BIBLIOGRAPHY
INTRODUCTION

• Share of population in extreme poverty, 1981 to 2017

• Poverty rate map of India by prevalence in 2012, among its states and union territories
• Slums near the international airport in Mumbai/Bombay
• India Poverty rate since 1993 based on World Bank $2.00 ppp value
• India is a developing nation. Although its economy is growing, poverty is still a major challenge. However, poverty is
on the decline in India. According to an International Monetary Fund paper, extreme poverty, defined by the World Bank
as living on US$1.9 or less in purchasing power parity (PPP) terms, in India was as low as 0.8% in 2019 and the country
managed to keep it at that level in 2020 despite the unprecedented COVID-19 outbreak.[1][2] According to World Bank,
extreme poverty has reduced by 12.3% between 2011 and 2019 from 22.5% in 2011 to 10.2% in 2019. A working paper
of the bank said rural poverty declined from 26.3% in 2011 to 11.6% in 2019. The decline in urban areas was from
14.2% to 6.3% in the same period.The poverty level in rural and urban areas went down by 14.7 and 7.9 percentage
points, respectively.[3] According to United Nations Development Programme administrator Achim Steiner, India lifted
271 million people out of extreme poverty in a 10-year time period from 2005–2006 to 2015–2016. A 2020 study from
the World Economic Forum found "Some 220 million Indians sustained on an expenditure level of less than Rs 32 / day
—the poverty line for rural India—by the last headcount of the poor in India in
What is Poverty?

• Poverty is lack of shelter.

• Poverty is being sick and not

being able to see a doctor.

• Poverty is not having access to

school and not knowing how to
read.
• Poverty is hunger.

• Poverty is not having a job, is

fear for the future, living one day
at a time.

• Poverty is losing a child to illness

brought about by unclean water.

• Poverty is powerlessness, lack of

representation and freedom.
Poverty in India
• Despite the growth and development of the Indian economy during the last couple
of decades, poverty is, parallel, increasing in absolute terms.
• The bare fact is that nearly 27.5 % of India’s population still lives below the
poverty line, and 75 % of this, lives in rural areas.
• A recent report laments that 77 % of Indians live on a daily income of Rs.20 only.
(Rural)
• About two thirds of India’s more than 1 billion people live in rural areas, and
almost 170 million of them are poor.
• Although many rural people are migrating to cities, 3 out of 4 of India’s poor
people live in the vast rural parts of the country.
• Poverty is deepest among scheduled castes and tribes in the country’s rural areas.
India’s poorest people include 50 % of members of scheduled tribes and 40 % of
people in scheduled castes.
• On the map of poverty in rural India, the poorest areas lie in parts of Rajasthan,
Madhya Pradesh, Uttar Pradesh, Bihar, Jharkhand, Chhattisgarh, Orissa and West
Bengal.
Causes of Rural Poverty
Rapid Population Growth
• With 1,210,000,000 (1.21 billion) people, India is currently the world's
second largest country.
• From the total population of India 68.84% people live in rural area of
India and are growing very fast if we see the statistics of past few decades.
Lack of Capital
• People basically depend on farming and agriculture in the rural areas but
due to lack of sufficient capital they are not able to do their farming
activities and earn, so they become poor and go below poverty line.
Lack of literacy
• Many children living in rural areas receive a level of education which is very poor.
Overall enrollment in primary and middle schools are very low.
• 50 % of children living in these areas leave school before the fifth grade.
• These children leave school for variety of reasons: some leave because of lack of
interest; most leave so that they can work in the fields, where the hours are long and
the pay is low.
• A large percent of the dropouts are females. Forced by their parents, most girls
perform chores and tend the family at home.
• These are some of the reasons why 60% of all females in India are illiterate, a figure
much higher than those of males. As these children grow into adults, many are still
illiterate by the age of forty
Large Families
• Generally in rural areas there is large number of people living in one family. This
happens because of two reasons.
• First there is a lack of proper family planning in the rural areas among the
villagers, which increases the population.
• Secondly the people in the rural areas believe in living in one single families
rather than living in nuclear families. This increases the burden of number of
people to be fed in the house and also increases the expenses.
Lack of Alternate Employment Opportunities Other than Agriculture
• The villagers in the rural areas have no alternative solutions to earn their
livelihood accept farming as very few job opportunities are their in the villages
and even if there are any job opportunities except farming the money available is
not good.
Government’s Initiatives
For Employment

• Jawahar Gram Samriddhi Yojana (JGSY) (Formerly known as Jawahar Rozgar Yojana)

• Training rural youth for self employment TRYSEM Scheme

• Sampurna Gramin Rozgar Yojana

• National Rural Employment Guarantee Scheme

For Family Planning

• Family Planning / Welfare Program for Population Control

For Farmers Insurance
• Group Life Insurance Scheme for Rural Areas
• Agriculture Income Insurance Scheme
For Housing
• Rural Housing Program

For Development

• Small Farmer Development Program (SFDP)

• Drought Area Development

• Pradhan Mantri Gramodaya Yojana (PMGY)
• Swarna Jayanti Gram Swarozgar Yojana
• Integrated Rural Development Program
Causes of poverty
1. Increase rate of rising population:
In the last 45 years, the population has increased at the
whopping rate of 2.2% per annum. An average of approx. 17
million people are added every year to the population which
raises the demand for consumption goods considerably.
2. Less productivity in agriculture:
In agriculture, the productivity level is very low due to
subdivided and fragmented holdings, lack of capital, use of
traditional methods of cultivation, illiteracy etc. The very reason
for poverty in the country is this factor only.
3. Less utilization of resources:
Underemployment and veiled unemployment of human resources
and less utilization of resources have resulted in low production in
the agricultural sector. This brought a downfall in their standard of
living.
4. A short rate of economic development:
In India, the rate of economic development is very low what is
required for a good level. Therefore, there persists a gap between the
level of availability and requirements of goods and services. The net
result is poverty.
5. Increasing price rise:
Poor is becoming poorer because of continuous and steep price rise.
It has benefited a few people in the society and the persons in lower
income group find it difficult to get their minimum needs.
history

• The pandemic struck India when it recorded its lowest economic growth in over a decade. The slowing
economy had disproportionately impacted the rural areas, where the country’s majority of consumers and
poor reside.
• Even in absence of any official data, one could perceive a rise in rural poverty. Unemployment was high;
consumption expenditure was constantly coming down; and public spending on development was stagnant.
These three factors together dictate the wellbeing of an economy.
• Cut to 2021. Rural Indians — mostly an informal workforce and poor by any accepted definition — have
lived with irregular jobs for over a year. Anecdotal stories of precarious survival are pouring out. People are
cutting back on food items; many have stopped having the basics like lentil as food inflation has spiked.
• The Mahatma Gandhi National Rural Employment Guarantee Scheme is no more able to absorb demands
for employment. Many are digging into their meagre savings. With the second wave of the pandemic hitting
hard, it is a situation of extreme desperation. One can argue the economy for the poor and the marginally
well-off have ceased. What does this result in?
(Urban)
• As per the latest NSSO survey reports there are over 80 million poor people living
in the cities and towns of India. The Slum population is also increasing and as per
TCPO estimates 2001; over 61.80 million people were living in slums.
• The bulk of the urban poor are living in extremely deprived conditions with
insufficient physical amenities like :
▫ Low-cost water supply,
▫ Improper sanitation,
▫ Bad Sewerage and drainage system,
▫ Very less social services relating to health care, nutrition, pre-school and non-
formal education.
• With over 575 million people, India will have 41% of its population living
in cities and towns by 2030 of its nearly 1 billion inhabitants, an estimated
260.3 million are below the poverty line, of which 193.2 million are in the
rural areas and 67.1 million are in urban areas.
• The poverty level is below 10% in states like Delhi, Goa, and Punjab etc
whereas it is below 50% in Bihar (43) and Orissa (47). It is between 30-
40% in Northeastern states of Assam, Tripura, and Mehgalaya and in
Southern states of TamilNadu and Uttar Pradesh.
Causes of Urban Poverty
Slow job growth
• Increasing Urban population (currently around 38 crore)
• Severe competition.
• Those who use to get jobs or promotions easily now have to struggle more due to the
population hike in the cities.
Migration of Rural Youth towards Cities
• Majority of rural area depends on agriculture (which is highly dependant on rain patterns)
• Inadequate rain fall and improper irrigation facilities these days.
• Low or no production of crops which leads to severe poverty among rural population.
• Urban poverty also increases due to migration of people from rural areas to cities
Government’s Initiative
For Employment
• Nehru Rozgar Yojana (NRY)
• Self – Employment Program for the Urban Poor (SEPUP)
• Prime Minister’s Rozgar Yojana (Also implemented in rural areas)
• Swarna Jayanti Shahri Rozgar Yojana
• Self – Employment to the Educated Urban Youth (SEEUY) Program

For Housing
• Financial assistance for Constructing Houses

Other Programmes
• Urban Basic Services for the Poor (UBSP) Program
• In line of these approach, NGOs have developed various strategies to influence the
process of public policy making and to control the implementation of development
programs or projects.

Few NGOs in Ahmedabad

▫ Jyoti Sangh
▫ Apang Manav Mandal
▫ VidhyaNagar Sewa Sameeti
▫ Shivbaba Shraddha Kalyan Association
▫ Shree Manglay Seva Kelavani Mandal
Social Marketing for Poverty

Developing a Social Marketing Plan

• Step 1: Background, Purpose, and Focus
• Step 2: Situation Analysis
• Step 3: Target Audience Profile
• Step 4: Marketing Objectives and Goals
• Step 5: Factors Influencing Adoption of the Behavior
• Step 6: Positioning Statement
• Step 7: Marketing Mix Strategies
• Step 8: Plan for Monitoring and Evaluation
• Step 9: Budget
• Step 10: Plan for Implementation and Campaign Management
What can we do?

In our own small way,

let us not waste resources,

the fruit of hard earned tax payer’s money,

which might better be used to eradicate the misery of others.

Let us show that we do care and

realize the dream of seeing a poverty free India.

How To Eliminate Poverty?

• Widening the concept of employment

• Ensuring financial services even to the poorest person
• Recognizing every single human being as a potential entrepreneur
• Recognizing social entrepreneurs as potential agents for creating a world
of peace, harmony, and progress
• Recognizing the role of globalization and information technology in
reducing poverty.
Recommendations

• Launch large-scale infrastructure construction.

• Establishing agric-technology extension service network basically covering the
whole country.
• Setting up national rural cooperative credit system and their efficient functioning.
• Pushing forward rapid development of rural as well as urban fundamental
education and basic medical care.
• Preliminarily setting up rural as well as urban social security system with focus
on community’s developmental system and assistance to extremely poor people.
Conclusion
• Though India shows a high economic growth, it is shameful that there is
still large scale poverty in India.

• India has the world's largest number of poor people living in a single
country.

• Poverty in India can be defined as a situation when a certain section of

people are unable to fulfill their basic needs.

• Hunger, malnutrition and susceptibility of poor to natural disasters make

them take up anti national and anti social activities

• It is the duty of the governments in particular and all citizens in general to

try their best to alleviate poverty to establish harmony and peace in the
societies and in the world.
Acknowledgement

First and Foremost, I would like to express my special thanks and gratitude to my
Civics teacher and our Principal for providing me with the golden opportunity to
do this wonderful project on the topic - “Rural Local Self Government”, and also
for their support, encouragement, enthusiasm, and guidance throughout the project.

Secondly, I would like to thank my parents and my friends for their continuous
support, help, and encouragement, and also for providing me with enough content
and material for the project.

At last, I would like to thank my Fellow Classmates for numerous helpful

discussions along the way.
Bibliography

Websites
1. Google
2. Wikipedia