CAUSES OF POVERTY

● HISTORICAL REASON
1) British rule in India saw extremely low level of economic development
2) The colonial policies were responsible for destruction of Indian handicraft
industries which resulted in low income, unemployment and extreme poverty
which persisted till 1980’s.
3) Lack of employment opportunities and low incomes were accompanied by
population growth.
4) The failure to control poverty and stimulate economic growth resulted in poverty
and low per capita income

● SPREAD OF IRRIGATION AND INTENSIVE INDUSTRIALIZATION

1) Green Revolution was successfully implemented in a few states of India which
benefitted through its modern irrigation system.
2) It created job opportunities in agriculture but only in selected parts of India.
3) Industries were unable to absorb the unemployed rendered by modern
agriculture which resulted in unemployment in cities, people picking odd jobs as
rickshaw pullers or construction workers with very low incomes and living in
slums.
4) This reflection of poverty in cities is also known as a rural phenomenon.
● HUGE INCOME INEQUALITIES
1) It is due to unequal distribution of land and other resources.
2) Major policy initiatives like land reforms which aimed at redistribution of assets in
rural areas have not been implemented properly effectively.

● SOCIO-CULTURAL AND ECONOMIC FACTORS

1) In order to fulfil social obligations and observe religious ceremonies, people in
India, including the very poor, spend a lot of money.
2) Small farmers need money to buy agricultural inputs like seeds, fertilizer,
pesticides etc. Since poor people hardly have any savings, they borrow.
3) Unable to repay because of poverty, they become victims of indebtedness.

ANTI POVERTY STRATEGY IN INDIA

● BASED ON TWO PLANKS A) promotion of economic growth B) targeted anti-poverty
programmes.
● Since the eighties, India’s economic growth has been one of the fastest in the world.
● The higher growth rates have helped significantly in the reduction of poverty.
● Therefore, it is becoming clear that there is a strong link between economic
growth and poverty reduction
● Economic growth widens opportunities and provides the resources needed to invest in
human development.
● This also encourages people to send their children, including the girl child, to schools in
the hope of getting better economic returns from investing in education.
LIMITATIONS
● The poor may not be able to take direct advantage from the opportunities created by
economic growth.
● Moreover, growth in the agriculture sector is much below expectations which has a direct
bearing on poverty.

In these circumstances, there is a clear need for targeted anti-poverty programmes How?

ANTI POVERTY SCHEMES

NAME OF THE YEAR AIM /FEATURES TARGET GROUPS

SCHEME

Mahatma Gandhi 2005 ● To provide 100 ● Rural poor

National Rural days of wage
Employment employment to
Guarantee Act every household
to ensure
livelihood
security in rural
areas.
● It also aimed at
sustainable
development to
address the
cause of
draught,
deforestation
and soil erosion
● One-third of the
proposed jobs
have been
reserved for
women
● Wage rates vary
as per the
states.

Prime Minister 1993 ● The aim of the For educated

Rozgar Yozana programme is to unemployed youth
(PMRY) create in rural areas and
self-employment small towns.
opportunities
● helped in
setting up small
businesses and
 industries.

Rural Employment 1995 The aim of the

Generation programme is to create
Programme (REGP) self employment
opportunities in rural
areas and small towns

Swarnajayanti Gram 1999 The programme aims at

Swarozgar Yojana bringing the assisted
(SGSY) poor families above the
poverty line by
organizing them into
self help groups
through a mix of bank
credit and government
subsidy.

Pradhan Mantri 2000 Additional central

Gramodaya Yozana assistance is given to
(PMGY) states for basic services
such as primary health,
primary education, rural
shelter, rural drinking
water and rural
electrification

LIMITATIONS OF ANTI POVERTY SCHEMES

● Lack of proper implementation and right targeting.
● Despite good intentions, the benefits of these schemes are not fully reached to the
deserving poor.
SUGGESTION
A major emphasis in recent years is on proper monitoring of all the poverty alleviation
programmes.

CHALLENGES AHEAD
● Wide disparities in poverty are visible between rural and urban areas and among
different states.
● Certain social and economic groups are more vulnerable to poverty
● The official definition of poverty, however, captures only a limited part of what poverty
really means to people