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Poverty

Poverty refers to the condition where individuals or groups lack the financial resources and essential services to achieve a minimum standard of living. In the UPSC context, poverty is often discussed in terms of its causes, consequences, and measures to address it. Key points include:

  • Absolute vs Relative Poverty: Absolute poverty refers to the inability to meet basic needs like food, shelter, and clothing, whereas relative poverty is defined in comparison to the economic standard of a society (i.e., being poorer than the average person).
  • Causes: The causes of poverty in India include factors such as low economic growth, unemployment, lack of education, poor health services, social discrimination, and inadequate access to resources.
  • Measurement: Poverty is often measured using the poverty line, which is a threshold defined based on income or consumption levels, adjusted for inflation. The government uses methods like the Tendulkar Committee report and the NITI Aayog’s Multidimensional Poverty Index (MPI) to assess poverty.
Key Statistics on Poverty in India
  • According to the World Bank, India’s poverty rate (measured at $1.90 per day) was estimated to be around 21.9% in 2020.
  • As per the NITI Aayog report, over 22% of India’s population still lives below the national poverty line, with rural areas contributing a larger share of poverty.
  • The poverty gap (the difference between the average income of poor people and the poverty line) is significant in India, indicating the depth of poverty.
Government Initiatives to Combat Poverty

Over the years, the Indian government has implemented several poverty alleviation programs:

  1. Public Distribution System (PDS):
    • Aimed at ensuring food security, the PDS provides subsidized food grains to the poor, especially in rural areas.
  2. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA):
    • This flagship program guarantees 100 days of wage employment to rural households, ensuring that people have access to a source of income and reducing rural poverty.
  3. Pradhan Mantri Awas Yojana (PMAY):
    • The scheme aims to provide affordable housing for the homeless and poor families in urban and rural areas, ensuring better living conditions.
  4. Pradhan Mantri Jan Dhan Yojana (PMJDY):
    • This financial inclusion program ensures access to banking and financial services for every household, including those in rural and economically backward areas.
  5. National Social Assistance Program (NSAP):
    • Aimed at providing financial assistance to the elderly, disabled, and widows, NSAP ensures a minimum level of social security for the most vulnerable sections of society.
  6. Skill India Mission:
    • Launched to provide skills training and improve employability among the youth, Skill India aims to equip individuals with the skills needed to secure better-paying jobs.
  7. National Rural Livelihood Mission (NRLM):
    • NRLM works to promote self-employment and organize rural poor women into self-help groups, empowering them to escape poverty through entrepreneurship and skill development.
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