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Poverty: Causes, Effects, and Solutions

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Poverty in India

Have a look around you and tell me what you see? Do you see beggars on the streets, outside of shops, and on the roads? What about rickshaw-pullers arguing with a customer for an extra ten rupees? Are you aware of the crime rate and drug abuse even by children in our society? Now, there could be multiple reasons, but poverty in India seems to be the prominent cause behind these issues. 


India is the second-most populous nation in the world, with about 1.2 billion people. Our country has experienced growth rates of up to 10% over multiple years and is one of the largest economies in the world. However, only a tiny fraction of the Indian population has availed benefits from the stunning economic boom so far. Most of the people in India still live in abject poverty. That’s why it’s essential to understand the concept of poverty as a challenge in India.


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Introduction of Poverty in India

The world has been going through increased urbanisation for numerous years now. Urbanisation has offered enhanced growth, a reliable food supply, economies of scale, stable public services and various other benefits, including huge markets that contribute to education, businesses, and innovation. However, while these developments are beneficial in the long run, it has also introduced a few adverse outcomes. 


As the population grows at an unusual pace, the majority of communities are overwhelming cities that lack proper infrastructure and municipal organisations to manage the increasing challenges. It is a problematic issue in India, where there are urban slums and other areas with intensive population growth. By doing a project on poverty in India for Class 12, students can closely understand the concept and reality associated with this topic. 


Challenges of Poverty

One of the toughest challenges experienced by independent India is poverty and it further brings more challenges in life. 


Effects on Health: This biggest challenge of poverty is poor health. People who suffer from poverty have no access to sufficient food, proper clothing, medical facilities and a clean environment. The lack of these basic needs leads to poor health. Most of them even suffer from malnutrition, and they don’t even have enough money to visit a doctor. 


Effects on Society: There are a lot of challenges of poverty faced by society. 


  • First, the violence and crime rate increases a lot. Due to unemployment and marginalization, poor people usually indulge in unfair practices like prostitution, theft and other criminal activities. 

  • Second, people are generally homeless, so they sleep on roadsides, making it unsafe for them, mostly women and children. 

  • Third, poverty forces people to send their kids to work rather than putting them in schools. On average, poor families send their children at the age of 5 years only. 


Effects on Economy: Poverty is directly correlated to the success of the economy for a country. The number of people living under the poverty line reflects how powerful the economy is. 


These are some of the prominent examples of poverty in India that people face daily.


Consequences of Poverty in India

India also faces an elevated risk of disease and health care systems struggle to support and can’t respond efficiently. Almost 800 million people in India are marked as poor, and most of them live in the countryside while keeping afloat with odd jobs. The lack of employment, which offers a liveable wage in most rural areas, is driving a lot of Indians into swiftly developing metropolitan areas like Delhi, Mumbai, Bangalore, and Calcutta. Even there, most of them lead a life of poverty and despair in massive slums made up of several corrugated ironworks, without enough drinking water supply, without garbage disposal, electricity, and various other necessities. 


Furthermore, such consequences of poverty in India cause diseases like cholera, dysentery, and typhus, in which particularly kids suffer and die. So, poverty in India mostly affects kids, families and individuals in a wide range of different ways like: 


  • High infant mortality

  • Malnutrition

  • Child labour

  • Lack of education

  • Child marriage

  • HIV / AIDS


Projects on Poverty in India

Integrated Rural Development Programme (IRDP): It was first introduced in 1978-79 and universalized from 2nd October 1980, to offer assistance to the rural poor in the form of subsidy and bank credit for effective employment opportunities through successive plan periods.


Jawahar Rozgar Yojana/Jawahar Gram Samridhi Yojana: The JRY was introduced to create meaningful employment opportunities for the unemployed and underemployed in rural parts of the country through the formation of economic infrastructure, community and social assets.


Food for Work Programme: It focuses on improving food security through wage employment. Foodgrains are supplied to states for free; thus, the supply of food grains from the Food Corporation of India (FCI) godowns has been slow.


Rural Housing – Indira Awaas Yojana: The Indira Awaas Yojana (LAY) programme is meant to offer free housing to Below Poverty Line (BPL) families in rural areas and keep up the targets would be the households of SC/STs.


In the end, we understood what poverty in India is all about and how knowing the causes and consequences can help us fight poverty and make India a better place.


Tips and Tricks for Students to learn about the Topic of Poverty in Social Science from Vedantu

Vedantu is an emerging online learning platform for students who wish to excel in their academics at school and entrance exams.


  1. Vedantu provides a variety of articles strictly dedicated to learning about Poverty and related topics as a part of the syllabus in social science for different classes like free access to Question Answers based on Poverty, for example, Causes of poverty and the steps taken by the Government to reduce poverty by just signing up at Vedantu. Some of the articles are also provided in the section of FAQs in Question number 7.

  2. Vedantu also provides a variety of free videos by talented and dedicated teachers specialising in Social Science to learn about Poverty and related topics of Social science. Some of them include Poverty as a Challenge for the students of Class 9 Economics and What is Poverty for Class 12 Economics. 

  3. In this list, Vedantu also includes study material for all the students of Class 5-12 of all subjects in CBSE, ICSE and State Board all for free. This includes NCERT Solutions, Revision and keynotes, Important Questions, Solved References, Solved Sample question papers and Previous Year's question papers by the talented and experienced faculty at Vedantu from prestigious institutions like IITs and other top tier colleges of the country. 

  4. Vedantu provides free Micro courses at a very economical price of 1 rupee per course for the students to prepare for the important topics of Business studies like Management and other relevant topics of social science. Register yourself at vedantu.com to kickstart your spectacular academic adventure now!

FAQs on Poverty: Causes, Effects, and Solutions

1. What is poverty, and how is the poverty line determined in India as per the CBSE syllabus?

Poverty is a state in which an individual or community lacks the financial resources and essentials for a minimum standard of living. In India, the poverty line is a crucial measure used to quantify this. Historically, it has been determined based on the minimum nutritional requirements (calorie intake) and the corresponding monetary value, known as the Monthly Per Capita Expenditure (MPCE), needed to afford those essentials. This approach helps the government identify households living below a certain income or consumption threshold.

2. What is the difference between absolute poverty and relative poverty? Which is more relevant to India's context?

Absolute poverty refers to a condition where a person lacks the basic necessities for survival, such as food, clean water, shelter, and healthcare. It is measured against a fixed standard, like the poverty line. Relative poverty, on the other hand, is defined in comparison to the economic standards of the population. A person is relatively poor if their income is significantly lower than the average income of their society. While both exist in India, absolute poverty has traditionally been the primary focus of government policies due to the large population struggling for basic survival.

3. What are the main causes of widespread poverty in India?

The primary causes of poverty in India are multifaceted and interconnected. Key factors include:

  • Rapid Population Growth: A large population puts immense pressure on limited resources and reduces the per capita availability of essentials.
  • Unemployment and Underemployment: A lack of sufficient job opportunities, especially in rural areas, leads to low or irregular income.
  • Low Agricultural Productivity: Dependence on traditional farming methods and lack of modern infrastructure result in low output and income for a large segment of the population.
  • Social Factors: Deep-rooted social structures, such as the caste system and gender inequality, can limit access to opportunities for certain groups.
  • Lack of Capital: Low rates of capital formation and inadequate access to credit prevent people from starting businesses or improving their economic condition.

4. What are the major economic and social consequences of poverty?

Poverty has severe and far-reaching consequences that affect both society and the economy.

  • Social Consequences: These include poor health and malnutrition, high infant mortality, lack of access to quality education, child labour, homelessness, and social exclusion.
  • Economic Consequences: These include low capital formation (as poor people cannot save), limited market demand, inefficient use of human resources, and a slower rate of overall economic growth for the country.

5. What are some key poverty alleviation programmes (PAPs) initiated by the Indian government?

The Indian government has launched several Poverty Alleviation Programmes (PAPs) to tackle poverty. Some of the most significant examples include:

  • Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): Guarantees 100 days of wage employment to every rural household whose adult members volunteer to do unskilled manual work.
  • National Food Security Act (NFSA): Aims to provide subsidised food grains to approximately two-thirds of the population.
  • Pradhan Mantri Jan Dhan Yojana (PMJDY): Focuses on financial inclusion by ensuring access to financial services like bank accounts, credit, and insurance.
  • Integrated Rural Development Programme (IRDP): Provides assistance to the rural poor in the form of subsidies and bank credit for self-employment.

6. Why have poverty alleviation programmes in India seen only partial success?

Despite numerous programmes, the success has been limited due to several critical challenges. A primary reason is the issue of ineffective implementation and leakages, where benefits do not reach the intended recipients. Other factors include the lack of proper identification of the poor, overlapping of schemes, and insufficient allocation of resources. Moreover, these programmes often fail to address the structural causes of poverty, such as social inequality and lack of access to quality education and healthcare, which require a more comprehensive, multi-pronged approach.

7. How does the nature of poverty differ between rural and urban areas in India?

Poverty manifests differently in rural and urban settings. Rural poverty is primarily linked to landlessness, dependence on seasonal agriculture, and lack of alternative livelihood options. The poor in rural areas are often small and marginal farmers or landless labourers. In contrast, urban poverty is characterised by issues like overcrowded living conditions in slums, poor sanitation, lack of job security in the informal sector, and higher living costs. The urban poor often work as casual labourers, street vendors, or rickshaw pullers with unstable incomes.

8. How does the concept of a 'vicious circle of poverty' explain its persistence?

The 'vicious circle of poverty' is an economic concept that explains how poverty becomes a self-perpetuating cycle. It operates from both the demand and supply sides. On the supply side, low income leads to low savings, which results in low investment and capital formation. This, in turn, leads to low productivity and perpetuates low income. On the demand side, low income means low purchasing power, which leads to low demand for goods and services. This discourages investment, resulting in low production and, consequently, low income. This cycle creates a trap that is extremely difficult for individuals and communities to escape without significant external intervention.