GSEB Class 12 Economics Solutions Chapter 5 Poverty

1. Choose the Correct Option for the Following Questions:

 

Question 1. How many minimum calories per person per day is decided by Indian Council of Medical Research?
(a) 2400
(b) 2300
(c) 2200
(d) 2100
Answer: (a) 2400
In simple words: The Indian Council of Medical Research set a daily minimum of 2400 calories per person. This amount ensures people get enough energy each day.

Exam Tip: Remember specific numerical facts like calorie requirements and committee decisions as they are often tested directly.

 

Question 2. What amount is decided by Tendulkar committee in the year 2011-12 for deciding poverty line in urban areas?
(a) 816
(b) 916
(c) 1000
(d) 2000
Answer: (a) 816
In simple words: The Tendulkar committee determined that Rs 816 was the minimum needed per person in urban areas in 2011-12 to be above the poverty line. This amount covered basic needs.

Exam Tip: Differentiate between rural and urban poverty line figures set by various committees, as they vary and are frequently asked.

 

Question 3. Which state had lowest poverty in the year 2013 in India?
(a) Gujarat
(b) Rajasthan
(c) Goa
(d) Bihar
Answer: (c) Goa
In simple words: In 2013, Goa recorded the lowest poverty rate in India compared to other states. This suggests better living conditions there.

Exam Tip: Keep track of state-wise economic indicators and rankings mentioned in the syllabus, especially for poverty and development.

 

Question 4. According to an estimate for the year 2011-12 which of the following state falls in the category of 30-40% poverty?
(a) Punjab
(b) Jammu and Kashmir
(c) Karnataka
(d) Odisha
Answer: (d) Odisha
In simple words: In 2011-12, Odisha was among the states where 30-40% of the population lived in poverty. This shows the significant challenge it faced.

Exam Tip: Memorize state-specific poverty ranges or categories for the given periods, as direct recall questions are common.

 

Question 5. What is the percentage of malnourished people in India in 2014-16?
(a) 23.7
(b) 15.2
(c) 11.2
(d) 20.5
Answer: (b) 15.2
In simple words: Between 2014 and 2016, 15.2% of people in India were malnourished. This figure indicates the prevalence of nutritional deficiencies.

Exam Tip: Pay attention to specific data points and percentages related to health and nutrition indicators, linking them to poverty analysis.

 

Question 6. Which state has maximum toilet facility in India?
(a) Gujarat
(b) Punjab
(c) Bihar
(d) Kerala
Answer: (d) Kerala
In simple words: Kerala has the highest number of toilet facilities available across India. This indicates its progress in sanitation infrastructure.

Exam Tip: Understanding the social indicators of poverty includes access to facilities like sanitation; remember which states lead in these aspects.

 

2. Answer the Following Questions in One Line:

 

Question 1. What is Poverty line?
Answer: The poverty line is a specific minimum level of per capita consumption and expenditure needed to determine people's basic needs. It acts as a benchmark for measuring poverty.
In simple words: The poverty line is a basic spending amount set to decide if a person can afford essential needs.

Exam Tip: Define the poverty line clearly, mentioning both consumption and expenditure, as it's a fundamental concept in poverty studies.

 

Question 2. Explain the concept of Relative Poverty.
Answer: Relative poverty refers to a situation where people lack the minimum income required to maintain the average living standard in their society. It means being poor compared to others around you.
In simple words: Relative poverty means not having enough money to keep up with the average lifestyle of your community.

Exam Tip: Distinguish relative poverty from absolute poverty by emphasizing its comparative nature based on societal living standards.

 

Question 3. Which kind of expenditure is included by Tendulkar Committee for poverty line?
Answer: As per the Tendulkar Committee, the different expenses included for calculating the poverty line are nutritive and balanced food, health, electricity, kitchen fuel, clothing, educational expenditure, housing, and other similar items.
In simple words: The Tendulkar Committee considered costs for food, health, electricity, fuel, clothes, education, and housing when setting the poverty line.

Exam Tip: List the key components of expenditure considered by the Tendulkar Committee accurately, demonstrating knowledge of the committee's methodology.

 

Question 4. Which method is used to measure relative poverty?
Answer: The Lorenz curve and the Gini co-efficient are the main methods used to measure relative poverty. These tools help to show income inequality.
In simple words: Relative poverty is measured using the Lorenz curve and the Gini co-efficient.

Exam Tip: Name both the Lorenz curve and Gini coefficient as they are standard economic tools for measuring income disparity and relative poverty.

 

3. Answer the Following Questions in Brief:

 

Question 1. Explain income concept of poverty.
Answer:

• Poverty is a condition in which most of the population cannot meet their minimum needs and lives below a basic living standard. It indicates a lack of sufficient funds.
• Poverty is a relative concept because most nations worldwide have attempted to define and understand poverty differently. Each country determines poverty based on its living standards, time, and social structure. Since the living standards and social structures of all nations are not the same, poverty is a relative concept.

In simple words: Poverty happens when many people cannot meet basic needs and live below an acceptable standard. It is also considered a relative idea because different countries define it based on their own living standards and social conditions.

Exam Tip: When explaining the income concept of poverty, ensure you cover both absolute and relative aspects and how different contexts influence its definition.

 

Question 2. Explain the modem approach of poverty.
Answer: Modern meaning of poverty (Non-income poverty):

• Non-income poverty shows various parts of human development to decide if someone is poor. This idea includes not just income and food but also other factors like housing, clothing, drinking water, health, sanitation, etc., to give a complete view of poverty.
• This method is better and broader than the traditional approach because income is not the only measure of poverty; other factors like housing, clothing, drinking water, health, and sanitation are also considered. Therefore, this concept provides a wider understanding of poverty.

In simple words: Modern poverty considers more than just income, looking at housing, health, and other aspects to get a full picture. This approach is better because it gives a broader definition of poverty.

Exam Tip: Emphasize that the modern approach expands beyond mere income, incorporating multi-dimensional aspects of human well-being for a holistic understanding of poverty.

 

Question 3. Explain the limitations of poverty line.
Answer: Limitation of all these methods:

1. Calculating poverty and setting a poverty line based only on calorie consumption does not give an accurate picture of poverty. This is because poverty is an economic situation, and its scope is wider than just spending on food.
2. Hunger is a physical condition, while poverty is an economic one. In this sense, the poverty line determined by these methods often becomes merely a 'starvation line', focusing only on basic survival.
3. Therefore, to calculate the poverty line accurately, factors such as nutritious food, education, housing, drinking water, and sanitation that a person receives should also be included.

In simple words: Using only calorie intake to define poverty is limited because poverty involves more than just food. It often just measures hunger, not true economic poverty. For a better measure, education, housing, and clean water should also be included.

Exam Tip: Focus on how the calorie-based poverty line is too narrow, distinguishing physical hunger from broader economic poverty, and suggest additional necessary indicators.

 

Question 4. What is the measure of absolute poverty in India?
Answer:

• According to the Tendulkar Committee's analysis, absolute poverty in India decreased in 2011-12 compared to 2004-05.
• To analyze absolute poverty, the Tendulkar committee utilized expenditure data from joint families collected during the 68th round of the National Sample Survey Organization (NSSO) in 2011-12.

Analysis of the data:
Measurement of Poverty in India (%)Source: Economic Survey, 2015-16

• From the data, we can see that in 2004-05, absolute poverty in rural areas was 41.8%, which fell to 25.7% by 2011-12.
• In urban areas, the absolute poverty ratio in 2004-05 was 25.7%, which decreased to 13.7% in 2011-12.
• The total absolute poverty ratio, combining both rural and urban areas, was 37.2% in 2004-05, dropping to 21.9% in 2011-12.
• Thus, the Tendulkar Committee assessed that India's absolute poverty situation had improved, and the poverty rate had gone down.

In simple words: The Tendulkar Committee found that absolute poverty in India decreased between 2004-05 and 2011-12 in both rural and urban areas. This was based on household spending data, showing a clear improvement in poverty rates nationwide.

Exam Tip: Always quote specific percentages and years when discussing poverty trends in India, and cite the relevant committees or surveys for accuracy.

 

Question 5. Explain the importance of safe drinking water and housing facility.
Answer: Drinking water:

• A lack of clean drinking water causes all kinds of health problems.
• In India, about 63% of the population gets treated drinking water, meaning the water is purified. Around 9% gets untreated water, and about 26% gets water from other sources like ponds, tube wells, and hand pumps.
• Not having pure drinking water leads to many waterborne diseases, which then affect life expectancy and infant mortality rates.
• Therefore, access to drinking water shows the level of poverty.

Housing:

• Housing is a basic need for people. The type of housing available helps determine the level of poverty and acts as a poverty indicator.
• Developing countries often lack good housing. People live in poor conditions like dirty shantytowns and slums.
• How a house is built, whether it has proper ventilation and a verandah, how many people live in it, and if it has a water tap, drainage, or electricity are all factors that show the quality of housing and, by extension, the level of poverty.

In simple words: Safe drinking water and good housing are crucial because they directly affect people's health and living standards. Lacking them causes many diseases and shows a high level of poverty in a region.

Exam Tip: When discussing social indicators, explain how each factor (drinking water, housing) directly impacts health and quality of life, connecting it clearly to the measurement of poverty.

 

4. Give to the Point Answers for the Following Questions:

 

Question 1. Explain the economic causes of poverty.
Answer: Economic factors for poverty:

1. Low agricultural productivity per labor:
   • One major reason for high poverty in rural India is the low agricultural output per worker.
   • Problems such as poor irrigation, insufficient technology, lack of education and training, low investment, and a heavy population burden lead to low agricultural productivity. As a result, farmers' incomes remain low, and poverty increases.
2. Unequal distribution of land and property: Before and during the British rule in India, systems like Zamindari and broad land ownership were common. This resulted in land being concentrated among a few wealthy individuals, like zamindars.
   • Zamindars were not directly involved in land cultivation nor had any desire to invest in the agricultural sector. Consequently, the actual cultivators (farmers) became landless, while zamindars became the landowners.
   • The landless farmers then had to work on their own land as tenants, so they had no motivation to improve their work.
   • All these factors contributed to poverty among farmers.
3. Minimal development of small and cottage industry:
   • India began prioritizing heavy and basic industries as a strategy for economic development after its second five-year plan.
   • India overlooked small and cottage industries in rural areas, which contribute significantly to employment, production, and income.
   • Furthermore, agricultural and related activities like animal husbandry, dairy, and fisheries grew slowly. This situation led to seasonal unemployment. Consequently, poverty remained high.
4. Rapid increase in price:
   • Events like war, drought, low national output, fast demand growth, rising production costs, and increasing prices of goods, services, and food items cause prices to rise much faster.
   • Price increases reduce the purchasing power of low-income groups.
   • This lowers their living standard and increases poverty. On the other hand, rising prices benefit business owners, traders, and large farmers.
   • Society again gets caught in the cycle of unequal income distribution.
5. High rate of unemployment:
   • Most of rural India relies on agriculture, which depends on the monsoon. Therefore, most people can grow only one crop each year. This leads to seasonal unemployment.
   • To worsen matters, India has a large population, and families often live together. During periods of seasonal unemployment, it becomes very hard to cover the entire family's expenses. Many family members work in agriculture even when some are not actually needed, leading to disguised unemployment.
   • Additionally, a lack of alternative business opportunities in rural areas further increases unemployment and poverty.

In simple words: Economic reasons for poverty include low farm output, uneven land distribution, slow growth of small industries, rapid price increases, and high unemployment. These factors reduce income, limit job opportunities, and make it hard for people to meet their basic needs.

Exam Tip: Structure your answer with clear sub-points for each economic cause, providing a brief explanation for how each factor contributes to poverty, using examples if possible.

 

Question 2. Explain employment-oriented programme for poverty eradication.
Answer: Employment generation and poverty eradication are connected. Some key employment programs for reducing poverty include:

1. Integrated Rural Development Programme (IRDP) / Suvarana Jayanti Gram Svarojgar Yojna (SGSY): During the 6th five-year plan, various agencies ran different programs for the rural poor. On October 2, 1980, all these programs were merged into one called the Integrated Rural Development Programme (IRDP).
2. Following programs were integrated with IRDP:
   • (1) IRDP (Integrated Rural Development Programme)
   • TRYSEM (Training Rural Youth and Self-Employment Programme)
   • DWCRA (Development of Women and Child in Rural Areas)
   • MWS (Million Well Scheme)
   • SITRA (Supplying Improved Toolkit to Rural Artisans)
   • GWS (Ganga Welfare Scheme)
3. The main goal of IRDP is to encourage self-employment among poor families so they can rise above the poverty line.
4. This program focused on specific groups, including small and marginal farmers, agricultural laborers, and rural artisans.
5. Later, on April 1, 1990, IRDP and other programs integrated with it were merged and renamed as Suvarna Jayanti Gram Swarojgar Yojna.
6. These initiatives promoted the growth of small businesses. They also aimed to give self-help groups essential infrastructure, technology loans, and market access for final products, especially for the rural poor.

Wage employment schemes:

• Wage employment schemes focused on poor people who did not have any other source of income besides physical labor.
• Wage employment schemes included:
  1. Jawahar Rojgar Yojna (JRY) and
  2. Employment Assistance Scheme (EAS).
• These schemes provided jobs not only during the off-agricultural season but also during floods, droughts, scarcity, and other natural disasters.
• Under these schemes, various infrastructure facilities were developed in rural areas. Rural youth were employed in the construction and maintenance of these facilities.
• The government also made sure that laborers received fair wages.

3. Prime Minister Rojgar Yojna (PMRY):

• In the 1990s, job creation in the organized sector stagnated. There was negative growth in the public sector, and unemployment rates increased quickly.
• The Prime Minister Rojgar Yojna was started to address this situation. This scheme aimed at promoting self-employment by encouraging people to start their own businesses and providing jobs to educated unemployed individuals.

4. National Rural Employment Guarantee Act, 2005 (NREGA):

• The National Employment Guarantee Act was approved in February 2006.
• The goal of this program was to build assets through public construction work and to provide at least 100 days of employment per year to one person per family for rural and urban poor, as well as lower-middle-class families.
• According to this act, anyone who asked for a job would be given one within 7 days and within 5 km. If the job was further away, the person would receive 10% extra wages. If no job was available, the person would receive an unemployment allowance.
• The government tried to solve two problems at once: providing jobs to rural people during the non-farming season and developing national infrastructure by employing these people in construction activities.
• On October 2, 2009, NREGA was renamed the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

In simple words: Employment programs like IRDP, SGSY, PMRY, and NREGA were created to reduce poverty by offering jobs and encouraging self-employment. They aimed to provide work during slow seasons, build infrastructure, and ensure fair wages, especially for the rural poor and educated unemployed.

Exam Tip: For each program, identify its full name, key objectives, target beneficiaries, and any significant renamings or mergers to score well.

 

Question 3. Discuss health related indicators of poverty.
Answer: Level of malnutrition:

• Malnutrition is a condition where individuals lack proper nutrition because their food lacks enough calories, protein, carbohydrates, vitamins, and minerals.
• India has low per capita income and widespread income inequality. Despite increased agricultural production, people with low incomes cannot get nutritious food and thus suffer from malnutrition.

Life expectancy and infant mortality:
Life expectancy:

• Life expectancy is the average expected lifespan of a newborn baby.
• The average life expectancy in a country depends on nutritious food, cleanliness, clean drinking water, and health services. Poor people are deprived of these facilities, resulting in lower life expectancy.

Infant mortality:

• Infant mortality is the number of deaths per thousand newborns before they reach one year of age.
• The infant mortality rate depends on the availability of health services, mother's education, child vaccination, and food nutrition.
• Life expectancy and infant mortality are also indicators of poverty, particularly linked to poor health services.

Medical facilities:

• Medical facilities include the number of hospitals, doctors, nurses, compounders, etc., available to provide healthcare to the country's citizens.
• In developed countries, medical facilities are widely accessible, leading to high life expectancy and low infant mortality rates. This differs in developing countries, where life expectancy is lower.
• According to one estimate, developed countries have 1 doctor per 350 people, while developing countries have 1 doctor per 6000 people.
• In developing countries, poverty prevents access to medical facilities, resulting in lower life expectancy and higher infant mortality.
• Each year, 1.7 crore people in developing countries die from diseases like diarrhea, malaria, and tuberculosis.
• Around 2.3 crore people worldwide suffer from AIDS, with 90% residing in developing economies.

Drinking water: Lack of pure drinking water is the main cause of all health problems.

• In India, about 63% of the population gets drinking water from treated sources (purified water), around 9% from untreated sources, and about 26% from other sources like ponds, tube wells, and hand pumps.
• The unavailability of pure drinking water leads to many waterborne diseases, which negatively impacts life expectancy and infant mortality rates.
• Thus, drinking water serves as a poverty indicator.

Provision for toilets:

• India is largely a country of villages, with about 70% of its population living in them. Most villages still use untreated water sources like tube wells, hand pumps, canals, and ponds. Consequently, villagers are more likely to suffer from water-related illnesses.
• Cleanliness is another important aspect, directly linked to sanitation facilities.
• According to the 2011 census report in India, 34% of households do not have toilets at home, which leads to various diseases.

In simple words: Health indicators of poverty include malnutrition, low life expectancy, high infant mortality, limited access to medical facilities, unsafe drinking water, and poor sanitation. These issues show how poverty directly harms health and quality of life.

Exam Tip: Detail each health indicator (malnutrition, life expectancy, medical access, water, sanitation) and explain its connection to poverty, including relevant statistics if applicable.

 

Question 4. Explain the nature of poverty.
Answer: There are two primary kinds of poverty: absolute poverty and relative poverty. The nature of poverty depends on these two ideas. Absolute poverty: The minimum income and expenditure required to satisfy basic human needs is known as the poverty line. People living below this line are considered absolutely poor, and their condition is called absolute poverty. Relative poverty:

• Relative poverty is a condition where people lack the minimum income needed to maintain the average living standard in their society.
• It is important to note that the idea of absolute poverty focuses on the minimum consumption expenditure needed to meet basic needs. In contrast, relative poverty focuses on income inequality between different groups within society.
• Income disparity exists in all economies. Those who earn less are considered relatively poorer than those who earn more.

In simple words: Poverty has two forms: absolute, where people cannot meet basic needs, and relative, where people earn less than the average in their society. The nature of poverty depends on which of these ideas is being discussed.

Exam Tip: Clearly define and differentiate between absolute and relative poverty, explaining the core idea behind each, and how they both contribute to understanding the nature of poverty.

 

Question 5. Explain in short the social security schemes for poverty eradication.
Answer: Social security schemes:

• As a plan to reduce poverty in India, several social security schemes were launched for unorganized sector workers.
• The Atal Pension Yojna (APY) began on May 9, 2015, to provide a monthly pension to individuals over 60 years old.
• Alongside the pension scheme, the Prime Minister Security Scheme was also launched. Under this scheme, people aged 18 to 70 years get accident insurance of Rs 2 lakh for a very low premium of Rs 12. Under the Jivan Jyoti Scheme, people receive life insurance of Rs 2 lakhs for a premium of Rs 330 per year.
• To protect farmers from crop failure, the Prime Minister Fasal Bima Yojna (PMFBY) was started.

In simple words: India launched social security schemes like APY, Prime Minister Security Scheme, and PMFBY to help reduce poverty among unorganized workers and farmers. These programs offer pensions, accident and life insurance, and crop failure protection.

Exam Tip: Name each social security scheme, state its launch date (if given), and briefly explain its purpose and target beneficiaries for a comprehensive answer.

 

5. Answer the Following Questions in Detail:

 

Question 1. What is Poverty? Explain its indicators.
Answer: Poverty: Poverty is a situation where a large portion of the population cannot fulfill its basic requirements and lives below a minimal standard of living. Indicators of poverty:

• The elements that demonstrate the level of poverty are known as poverty indicators.
• Indicators help us understand the existence and extent of poverty in a specific region.

The description of each indicator is provided below: 1. Low per capita household consumption expenditure: Per capita household consumption expenditure is the amount of income that households spend on various goods and services. It is calculated based on the market price of durable goods like cars, televisions, refrigerators, washing machines, etc.

• Average per capita household consumption expenditure is computed using the formula below:
• Average per capita household consumption expenditure = (Country's total household expenditure on various goods and services / Total population of the country)
• Since the per capita income of developing countries is lower than that of developed countries, their per capita household consumption expenditure is also lower than that of developed countries. This serves as an indicator that developing countries are poorer.

2. Level of malnutrition: The condition where individuals' food lacks proper nutrition (sufficient calories, protein, carbohydrates, vitamins, and minerals) is called malnutrition.

• India's per capita income is low, and there is widespread income inequality. Despite an increase in agricultural production, people with low incomes cannot access nutritious food and therefore suffer from malnutrition.

3. Life expectancy and infant mortality:
Life expectancy:

• The average expected lifespan of a newborn baby is called life expectancy.
• The average life expectancy of people in a country is based on nutritious food, cleanliness, pure drinking water, and health services. Poor people are deprived of such facilities and thus have low life expectancy.

Infant mortality:

• Infant mortality is the number of deaths per thousand newborns before reaching one year of age.
• The rate of infant mortality depends on the availability of health services, mother's education, child vaccination, and food nutrition.
• Life expectancy and infant mortality are also indicators of poverty linked to poor health services.

4. Medical facilities:

• Medical facilities include hospitals, doctors, nurses, compounders, etc., available to offer healthcare to the country's citizens.
• In developed countries, medical facilities are widely available, leading to high life expectancy and low infant mortality rates. This is not the case in developing countries, where life expectancy is lower.
• According to an estimate, there is 1 doctor for every 350 people in developed countries, while there is 1 doctor for every 6000 people in developing countries.
• In developing countries, poverty prevents access to medical facilities, so life expectancy rates are low, and infant mortality is high.
• Every year, 1.7 crore people in developing countries die from diarrhea, malaria, and tuberculosis.
• Around 2.3 crore people worldwide suffer from AIDS, with 90% coming from developing economies.

5. Drinking water: Lack of pure drinking water is the primary cause of all health problems.

• In India, about 63% of the population receives drinking water from treated sources (purified), around 9% from untreated sources, and about 26% from other sources like ponds, tube wells, and hand pumps.
• The lack of pure drinking water leads to many waterborne diseases, which in turn affect life expectancy and infant mortality rates.
• Thus, drinking water is an important indicator of poverty.

6. Provision for toilets:

• India is a land of villages, with approximately 70% of the population residing in rural areas. Most villages still rely on untreated water sources like tube wells, hand pumps, canals, and ponds. Consequently, villagers are more prone to water-related diseases.
• Cleanliness is another crucial aspect directly linked to sanitation facilities.
• As per the 2011 census report in India, 34% of households do not have toilets in their homes, contributing to several diseases.

In simple words: Poverty means many people cannot meet basic needs. Key indicators of poverty include low household spending, malnutrition, short life expectancy, high infant mortality, poor medical facilities, lack of safe drinking water, and inadequate toilets. These factors collectively show the extent of poverty in a region.

Exam Tip: Define poverty clearly and then systematically explain each indicator. For each indicator, describe how it reflects poverty and mention relevant statistics or facts if known.

 

Question 2. Discuss the nature and causes of poverty.
Answer: The nature of poverty depends on two main types: absolute poverty and relative poverty.
Natural causes:

• India has always been an agricultural nation. Even now, most of the population lives in villages and relies on agriculture for their livelihood.
• In India, farming mainly depends on natural factors such as rain and weather conditions. Frequent droughts, unpredictable monsoons, and floods lead to low crop yields and uncertain earnings for those involved in agriculture. Therefore, nature becomes a reason for poverty.

In simple words: Poverty depends on absolute and relative types. India's farming relies on nature, and unpredictable weather causes low yields and uncertain income, making nature a cause of poverty.

Exam Tip: When discussing the nature and causes of poverty, always differentiate between absolute and relative poverty, and highlight natural factors like agricultural dependence and climatic challenges.

 

Question 3. Discuss the measures to reduce poverty in India.
Answer: India has implemented the following steps to decrease poverty during the planning period.
1. Steps to increase agricultural productivity:

• One significant reason for high poverty in India is the low output in agriculture. By boosting productivity, farming income can rise, which can then reduce poverty among farm workers.
• To achieve this goal, the government conducts various initiatives for farmers. Farmers are informed about the latest technology, get access to resources at fair prices, have better infrastructure, receive maximum prices for their produce, and benefit from regulated markets.
• Developing small-scale farming will not only boost output per worker but also create job opportunities. This will also help to bring down consumer prices.

2. Development of small scale industries:

• In India, small and cottage industries greatly contribute to the overall national income and employment. So, if these industries can be grown and encouraged, poverty can be lessened on a larger scale.
• A supportive environment, fewer regulations, making raw materials accessible, providing loans and technology, and a market to sell final products are some development tasks the government should undertake.

3. Development of unorganized sector:

• The unorganized sector and its workers make a significant contribution to production and jobs.
• The National Commission has advised providing better working conditions, life insurance, health services, old age pensions, and other social security benefits to these workers to improve their situation.
• For small and marginal farmers, it is suggested to provide irrigation facilities and loan options.

4. Use of appropriate tax policy:

• The government creates tax policies to reduce income inequality and poverty, and to distribute income more fairly.
• To meet this goal, the government implements policies where more tax is put on the rich, who can afford it, and less tax is put on the poor, who also receive tax breaks.
• In this way, the government collects money by taxing wealthy people and spends it on welfare-focused programs for disadvantaged people. As a result, the social and economic conditions of poor people get better, and income inequality and poverty decline.

5. Rise in human capital investment:

• Developed nations invest heavily in education and skill development, which leads to very low unemployment. Consequently, poverty is lower in such countries.
• A high level of education meets the needs of various job opportunities and choices for workers. Skill development improves worker productivity, which results in higher wages.
• To achieve this aim, continuous investment in training and research is necessary.

6. Goods and services at reasonable rate:

• Poor people often struggle to meet their basic needs like food, clothing, and housing.
• Most of their earnings are spent on buying essential food items for daily use. So, efforts should be made to give them nutritious food at affordable prices.
• This issue is largely addressed by India's public distribution system. Under this system, the government has established ration shops where basic goods are sold to rural and urban poor at reasonable prices.
• Even during times of drought and scarcity, the public distribution system ensures that it can fulfill the basic needs of poor people. This system greatly assists the poor and controls poverty.

7. Employment programmes:The government has launched several employment schemes to provide jobs and thus eliminate poverty. These schemes include:

• Integrated Rural Development Programme (IRDP) / Suvarana Jayanti Gram Svarojgar Yojna (SGSY)
• Wage Employment Schemes
• Prime Minister Rojgar Yojna (PMRY)
• National Rural Employment Guarantee Act, 2005 (NREGA)
• Housing Schemes
• Social Security Schemes
• Jan Dhan Yojna

8. Housing Schemes:

• Currently in India, most poor people live in temporary shelters.
• With the aim of providing proper homes to poor people, Indira Awas Yojna was launched in 1985-86 for families below the poverty line and Scheduled Caste and Scheduled Tribe members.
• In 2013-14, the Rajiv Gandhi Yojna was put in place to enhance the homes of those living in huts.
• To address the housing issue for urban poor, the Prime Minister Awas Yojna (PMAV) was launched on June 25, 2015.
• Although housing schemes provide homes, they also create jobs for people working on construction projects.

9. Social security schemes:

• As a way to lower poverty in India, various social security schemes were started for workers in the unorganized sector.
• Atal Pension Yojna (APY) began on May 9, 2015, to offer monthly pensions to people over 60 years old.
• Along with the pension scheme, a program called Prime Minister Security Scheme was also introduced. Under this scheme, people aged 18 to 70 years get accident insurance of Rs 2 lac at a very low premium of Rs 12. Under the Jivan Jyoti Scheme, people receive life insurance of Rs 2 lakhs at a premium of Rs 330 per year.
• To protect farmers from crop failure, the Prime Minister Fasal Bima Yojna (PMFBY) was launched.

10. Jan Dhan Yojna:

• To tackle the root causes of poverty through financial inclusion, an ambitious scheme called 'Pradhan Mantri Jan Dhan Yojna' was announced on August 28, 2014.
• The goal of this scheme was to bring people without bank accounts into the banking system, thereby reducing regional inequalities.
• This Yojna was launched with the primary goal that government subsidies for poor families should go directly into their bank accounts.

Conclusion: The government has made many attempts to lessen poverty. However, due to a very large and spread-out population, a lot more effort is still required to completely remove poverty from India.In simple words: India is trying to reduce poverty through many methods: boosting farm output, supporting small industries, helping unorganized workers, using fair tax rules, investing in people's skills, giving affordable goods, and launching many employment, housing, and social security programs like Jan Dhan Yojna. But because of its huge population, more work is needed to fully end poverty.

Exam Tip: When detailing poverty reduction measures, categorize them into logical groups like agricultural, industrial, social, and financial initiatives. Provide specific examples of schemes and their objectives.