Poverty refers to a situation in which an individual is unable to fulfill the basic needs of life


Poverty is the inability to fulfill the Minimum requirements of life



Measures of poverty

1. Relative poverty- it refers to the poverty of people in comparison to other people,region or Nation


It refers to poverty across different classes, regions or countries

2. Absolute poverty- it refers to the total number of people living below the poverty line


Poverty Line – it refers to the line in which divides the population in two parts (poor and non poor)


Categories of poverty

1. Chronic poverty –  it includes such people who are always poor and those who are usually poor

Also Read  India's Foreign Trade - Indian Economy

2. Transit poverty – it includes people who regularity moves in and out of poverty line


Poverty line determination

1. Consumption basis –

Minimum- 2400 calories in Rural areas

Minimum- 2100 calories in Urban areas

2. Expenditure basis

816 rupee monthly in Rural areas

1000 rupee monthly in Urban areas


Causes of poverty

1. Increase in population

2. Low level of national output

3. Inflationary spiral

4. Migration

5. Unemployment

6. Lack of infrastructure

7. Illiteracy


Measures to remove poverty

1.  Through GDP growth

2.  Improving the distribution of income

( through fiscal and legislative measures)

3. Through population control

4.  Other measures in handling quality of life of the poor

     a. Development of agriculture

     b.  Stability in price level

     c. Employment Generate

     d. Focus on backward regions

     e.  Effective Public Distribution(POS)


Measures adopted by the government to remove poverty OR poverty alleviation programme


1. Mahatma Gandhi National Rural Employment garantee Act (MGNREGA)

Also Read  Environment And Sustainable Development - Indian Economy

•At first NREGA Act was passed in 2005 later on it remains MGNREGA act in 2006

• Those who seeks employment can report on those rural area where this program is being launched


2. Swarna Jayanti gram swarozgar Yojana(SGSY)

• it was launched in village in April 1999

• to remove poverty from the rural areas

• self employment


3. Swarna Jayanti Shahari Rozgar Yojana(SJSRY)

• it was launched on 1 December 1997

• the objectives of this Yojana is to provide self employment or wage employment

• Two programme

a. Urban self employment programme (USEP)

b. Urban wage employment programme


4. Sampoorna Gramin Rozgar Yojana (SGRY)

• Launched on 1st September 2001

• Main objectives are –

(i) To Provide Employment

(ii) To Focus On Development Of Infrastructure


Some important years related Yojana

1. Swarna Jayanti Shahari Rozgar Yojana 1997

2. Swarna Jayanti gram swarozgar Yojana 1999

Also Read  Indian economy on the eve of Independence

3.  Sampoorna Grameen Rozgar Yojana 2001

4. Pradhanmantri gramodaya Yojana 2001

5. MGNREGA 2005


Conclusion: In this article we learn that ‘Poverty’. This Article Is Very Important For All students who adopt ‘Indian Economy’ Subject.

Leave a Reply