Poverty as a Challenge
Poverty is a state of hunger and lack of shelter, where people cannot afford basic necessities like nutritious food, healthcare, education, clean water, or a regular job.
Social scientists analyze poverty using various indicators, including income, consumption levels, and social factors like social exclusion and vulnerability.
Social exclusion is a process where certain individuals or groups are kept out of facilities, benefits, and opportunities that others enjoy, which is both a cause and a consequence of poverty.
Vulnerability measures the greater probability of certain communities or individuals, such as widows or backward castes, becoming or remaining poor, especially during crises like natural disasters.
The poverty line is a method to measure poverty based on income or consumption. A person is considered poor if their income or consumption falls below a minimum level needed for basic needs.
Historically, India's poverty line was based on a minimum calorie requirement. The accepted average was 2400 calories per day for rural areas and 2100 calories per day for urban areas.
NITI Aayog uses the NMPI to measure poverty based on 12 indicators across three dimensions: health, education, and standard of living, including factors like nutrition, sanitation, and bank accounts.
The proportion of multidimensional poverty in India has declined significantly. It fell from approximately 25 percent in 2015-16 to 15 percent in 2019-21.
The social groups most vulnerable to poverty are Scheduled Caste and Scheduled Tribe households. The most vulnerable economic groups are rural agricultural laborers and urban casual laborers.
Poverty levels vary widely across Indian states. States like Bihar, Uttar Pradesh, and Madhya Pradesh have high poverty rates, while states like Kerala, Tamil Nadu, and Punjab have low rates.
The World Bank defines extreme poverty as living on less than $2.15 per person per day. While global poverty has declined, Sub-Saharan Africa still has the largest concentration of poor people.
A major historical cause of poverty was the low level of economic development under British colonial administration. Their policies ruined traditional industries and discouraged growth.
Other significant causes include high population growth, huge income inequalities, unequal distribution of land and resources, and high levels of indebtedness among the poor.
The government's anti-poverty strategy is based on two main planks: promotion of economic growth and targeted anti-poverty programs.
The Mahatma Gandhi National Rural Employment Guarantee Act, 2005, aims to provide 100 days of guaranteed wage employment to every rural household to ensure livelihood security.
Human poverty is a broader concept that extends beyond the minimum subsistence level. It includes the lack of education, healthcare, job security, self-confidence, and freedom from caste and gender discrimination.