Maharashtra Board Class 11 Economics Chapter 8 Poverty In India PDF Download

Chapter 8: Poverty In India

Introduction

Poverty is one of the major challenges faced by Indian economy. It is a socio-economic phenomenon. Poverty is perceived as 'social exclusion' of a certain section of people in the society. Deprivation of basic needs and denial of opportunities has led to social exclusion.

Poverty in India has a long history. Economic drain of resources, decline of handicraft and cottage industries, oppressive economic policies, recurrence of famines etc. were responsible for mass poverty among the people during the British period.

Elimination of poverty has been the top agenda of the Indian Government since Independence. Policy measures such as economic planning, economic reforms and anti-poverty programmes such as 'garibi hatao' have helped in greater reduction of poverty.

Meaning Of Poverty

In the conventional sense, poverty refers to a situation in which a major section of the people in the society are unable to fulfil even the basic needs of life such as food, clothing and shelter due to lack of sufficient income.

Multi-Dimensional Poverty

Concept of poverty in the conventional sense was limited only to basic needs of life. However, in modern times, the scope of the concept of poverty has been enlarged. Of late, the concept of multi-dimensional poverty has emerged.

Multi-dimensional poverty refers to deprivation in terms of both material and non material dimensions. Material dimensions relate to deprivation in terms of food, clothing, shelter, health, education, road connectivity, electricity, access to safe drinking water and sanitation facilities etc. The non material dimensions are associated with social discrimination.

You Should Know

According to Prof. Amartya Sen, "Poverty is not just a lack of money, it is not having the capability to realize one's full potential as a human being". Capabilities refer to economic, social and political freedom. Lack of substantive freedom such as freedom to satisfy hunger, lack of nutrition, healthcare and educational facilities, denial of political and civil liberties lead to poverty.

Do You Know?

Noted Indian Economist and recipient of Bharat Ratna, Prof. Amartya Sen was awarded the Nobel Memorial Prize in Economic Science (1998) for his contribution to welfare economics and social choice theory as well as for his interest in the problems of the society's poorest members. In his book, 'Poverty and Famines: An Essay on Entitlement and Deprivation (1981)', Prof. Sen revealed that declining wage, unemployment, rising food prices and poor food distribution systems led to starvation among certain groups in the society. His views encouraged policy makers to pay attention not only to alleviating immediate suffering but also finding ways to replace the lost income of the poor. For economic growth to be achieved, he argued that social reforms such as improvements in education and public health must precede economic reforms.

Teacher's Note

Poverty means not having money to buy basic things like food and clothes. In India, many families live in villages without good schools or hospitals, which makes them poor.

Exam Trick

Remember: Poverty is not just about money. It is also about not having good health, education, or freedom. Think of poverty like a broken car - it is not just the engine, but also the wheels, brakes, and doors that matter.

Points To Remember

Poverty means not having basic needs like food, clothes, and shelter.
Multi-dimensional poverty includes both material things and social freedom.
Prof. Amartya Sen said poverty is about not having the capability to become a complete human being.
Absolute poverty is measured by minimum calorie intake needed per day.
Relative poverty is when some people have less than others in the same country.

Can You Tell

Express your opinion on the following:

There is a thick line of rural-urban economic divide in India.

There is an equitable distribution of income and wealth in the country.

All the citizens have equal access to education, health, energy and drinking water.

There is no hunger, starvation or malnutrition in the country.

There is lack of sanitation facilities in the country.

Poverty ratio is uniform across all the states.

Concepts Of Poverty

Poverty is multifaceted. The major concepts of poverty in India include absolute poverty and relative poverty.

a) Absolute Poverty

Absolute poverty is measured in terms of minimum calorie intake. Earlier, Planning Commission determined per capita daily calorie requirement of 2400 calories for a person living in the rural area and 2100 calories for a person living in the urban area. On an average, the per capita daily calorie requirement amounts to 2250 calories. Absence of minimum income to satisfy the desired level of calorie intake of food leads to absolute poverty. It is mostly found in the developing countries like India. Absolute poverty can be eradicated through effective poverty alleviation measures.

Find Out

Prepare a list of 5 Countries in the World having Absolute Poverty with reference to the latest World Bank Report.

Teacher's Note

Absolute poverty is when a person cannot even eat enough food to stay healthy. For example, if someone needs 2250 calories a day to be healthy but can only afford 1000 calories, they have absolute poverty.

Exam Trick

Remember: Absolute poverty is about calories - food energy. Think of it like your mobile phone battery - if it is below 20%, you are in danger. Similarly, if calorie intake is below the required level, it is absolute poverty.

Points To Remember

Absolute poverty is measured by calories needed per day.
Rural areas need 2400 calories per person per day.
Urban areas need 2100 calories per person per day.
Average need is 2250 calories per person per day.
Absolute poverty can be ended with proper government help.

b) Relative Poverty

It is difficult to define the concept of relative poverty. It is judged on the basis of comparison of relative standards of living of different sections of the people. Relative poverty is measured with respect to differences in the levels of income, wealth, consumption, economic inactivity (unemployment, old age) etc. Such poverty is found in all the countries of the world. It is an universal phenomenon. Relative poverty cannot be completely eradicated. However, it can be reduced to some extent through appropriate policy measures.

Teacher's Note

Relative poverty is when some people have less money than others in the same country. For example, a shopkeeper may have more money than a farmer, so the farmer is in relative poverty compared to the shopkeeper.

Exam Trick

Remember: Relative poverty is about comparison. Think of it like class rankings - everyone compares themselves to others. The person ranked last is in relative poverty compared to the topper.

Points To Remember

Relative poverty is about comparing income with other people.
It looks at wealth, consumption, and employment differences.
It is found in all countries of the world.
It cannot be completely stopped, only reduced.
Relative poverty is universal and natural in every society.

Poverty Line

Poverty line is an imaginary line that divides the poor and non-poor. It is determined in terms of per capita household expenditure. Various Committees and Study Groups have defined poverty line in different ways.

As per the Task Force on Eliminating Poverty constituted by the NITI Aayog, Poverty line is defined as "the threshold expenditure or the amount necessary to purchase a basket of goods and services that are considered necessary to satisfy basic human needs at socially acceptable levels".

Poverty line helps to fulfil the following objectives:

1) To determine the population living above poverty line (APL) and below poverty line (BPL).

2) To identify the poor on the basis of the household consumption expenditure.

3) To track poverty in a region over a period of time and compare it across regions.

4) To provide an estimate of the required expenditure on poverty alleviation programmes.

Teacher's Note

Poverty line is like a mark on the wall. If your monthly spending is below that mark, you are poor. If above that mark, you are not poor. In India, the poverty line is different for villages and cities.

Exam Trick

Remember: APL = Above Poverty Line (you are rich). BPL = Below Poverty Line (you are poor). Think of it as a cut-off mark in your exam - above the mark you pass, below you fail.

Points To Remember

Poverty line divides poor and non-poor people.
It is based on how much money a family spends each month.
APL means above poverty line or not poor.
BPL means below poverty line or poor.
Different countries have different poverty line amounts.

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