When an individual or community lacks the means of subsistence, they are said to be in a state or situation of poverty. When a person is in poverty, their level of employment-based income is too low to cover even their most basic necessities.

The World Bank defines poverty as a severe lack of well-being that has several dimensions. Low salaries and the inability to obtain the fundamental goods and services required for humane survival are examples of this. Low levels of health and education, poor access to sanitary facilities, insufficient physical security, lack of voice, and a lack of resources and opportunities to improve one’s situation are all included in the definition of poverty.

In 2011, 21.9% of Indians were considered to be living in poverty.

2018 saw about 8% of the world’s workers and their families lived on less than US$1.90 per person per day (international poverty line).

Types of Poverty:

Poverty can be divided into two categories:

• Absolute Poverty
• Relative Poverty

When a household’s income is too low to cover the costs of basic necessities like food, shelter, and housing, the situation is referred to as Absolute poverty. It is possible to compare between nations and over time thanks to this circumstance.

The “dollar a day” poverty line, which was initially proposed in 1990, determined absolute poverty according to the norms of the world’s poorest nations. The World Bank reset it to $1.90 per day in October 2015.

Relative Poverty is defined from a social standpoint as a person’s standard of living in relation to the economic standards of the local population. Consequently, it is a gauge of income disparity.

Typically, relative poverty is calculated as the proportion of people with incomes below some fixed proportion of median income.

The task force of NITI Aayog determines India’s poverty level using information gathered by the National Sample Survey Office, which is part of the Ministry of Statistics and Programme Implementation (MOSPI).

In India, estimating the poverty line is based on consumption costs rather than income levels.

The National Sample Survey Organization’s consumer expenditure surveys are the basis for measuring poverty. A household is considered to be poor if its expenditures fall below a given poverty limit.

The poverty ratio, which is the ratio of the number of impoverished people to the entire population stated as a percentage, is used to determine the incidence of poverty. It also goes by the name “head-count ratio.”

The Alagh Committee (1979) established a poverty level based on an adult’s minimal daily caloric needs in rural and urban areas, respectively, of 2400 and 2100 calories.

The poverty estimation was then carried out by many committees, including the Lakdawala Committee (1993), Tendulkar Committee (2009), and Rangarajan Committee (2012).

According to the Rangarajan Committee’s report from 2014, the poverty line is set at Rs. 972 in rural regions and Rs. 1407 in urban areas for monthly per-capita expenditure.

India’s poverty factors:

Population Explosion: Over the years, India’s population has grown steadily. In the previous 45 years, it has increased at a pace of 2.2% annually, which translates to an average annual population increase of 17 million people. Additionally, this significantly raises the demand for consumer products.

A significant contributor to poverty is the low productivity of the agriculture industry. Low productivity might have many causes. It is primarily due to fragmented and subdivided land holdings, a lack of funding, ignorance of modern farming technologies, the use of conventional farming practices, waste during storage, etc.

Inefficient resource use: The country, particularly the farming sector, has underemployment and covert unemployment.

This has resulted in low agricultural output and also led to a dip in the standard of living.

Low Rate of Economic Development: Economic development has been low in India especially in the first 40 years of independence before the LPG reforms in 1991.

Price Increase: The country’s prices have been rising steadily, which has increased the burden the poor are already carrying. Even though a small number of people have gained from this, lower income groups have suffered as a result and are unable to even meet their bare necessities.

Unemployment: Another element contributing to poverty in India is unemployment. The population is growing, which has increased the number of job applicants. To match this need for work, there is not enough expansion in opportunities.

Lack of Capital and Entrepreneurship: The economy experiences low levels of investment and job creation as a result of a lack of capital and entrepreneurship.

Social issues: In addition to economic issues, there are social elements that are impeding India’s efforts to eradicate poverty. A few of the hindrances in this regard are the laws of inheritance, caste system, certain traditions, etc

Colonial exploitation: India’s indigenous handicrafts and textile industries were destroyed by the British colonialism and domination over the country for approximately two centuries, which led to a deindustrialization of the country. India was reduced by colonial policies to a simple producer of raw materials for European businesses.

Climate: The states of Bihar, UP, MP, Chhattisgarh, Odisha, Jharkhand, etc. Are home to the majority of India’s poor people. Agriculture in these states suffers significant damage as a result of natural disasters such cyclones, earthquakes, regular floods, other disasters.

Programs to Reduce Poverty in India:

Integrated Rural Development Programme (IRDP), which was first implemented in 1978–1979 and became universal on October 2, 1980, was created to help the rural poor through the provision of bank credit and subsidies for opportunities to find gainful work.

Jawahar Rozgar Yojana/Jawahar Gram Samridhi Yojana (JRY): Through the development of economic infrastructure, community resources, and social assets, the JRY aimed to provide the unemployed and underemployed in rural areas with meaningful work possibilities.

Indira Awaas Yojana for Rural Housing: The Indira Awaas Yojana (LAY) initiative seeks to provide free housing to Below Poverty Line (BPL) families in rural regions, with a focus on SC/ST households.

The Food for Work Program seeks to improve food security by increasing wage employment. States receive free food grain deliveries, but the Food Corporation of India (FCI) godowns have had trouble keeping up with demand.

NOAPS, the National Old Age Pension Scheme The federal government offers this pension. Panchayats and municipalities are tasked with carrying out this scheme across the states and union territories. Depending on the state, the state contribution may change. For candidates 60 to 79 years old, the monthly pension is 200 yen. According to the 2011-2012 Budget, the sum has been revised to 500 per month for applicants over the age of 80. It is a profitable endeavour.

Annapurna Plan: This plan was initiated by the government in 1999–2000 to provide food to senior citizens who cannot take care of themselves and are not under the National Old Age Pension Scheme (NOAPS), and who have no one to take care of them in their village. This scheme would provide 10 kg of free food grains a month for the eligible senior citizens. They mostly target groups of ‘poorest of the poor’ and ‘indigent senior citizens’.

Mahatma Gandhi The National Rural Employment Guarantee Act of 2005 (MGNREGA): Every rural household is guaranteed 100 days of employment annually under the Act. The occupations under consideration would reserve one-third for women. Additionally, National Employment Guarantee Funds will be set up by the federal government. Similar to the federal government, state governments will create State Employment Guarantee Funds to carry out the programme. An applicant will be eligible for a daily unemployment benefit under the initiative if they are not offered employment within 15 days.

National Rural Livelihood Mission, Aajeevika (2011) it develops out of the necessity to diversify the requirements of the rural poor and give them employment with regular monthly income. In order to assist the destitute, self-help groups are organised at the village level.

National Urban Livelihood Mission (NULM) organises urban poor people into self-help groups, provides chances for skill development that lead to market-based employment, and assists them in starting their own businesses by assuring easy access to credit.

Kumar Mantri Pradhan Vikas Yojana: This programme will concentrate on those just entering the workforce, particularly class X and XII dropouts.

The Pradhan Mantri Feb. Dhan Yojana It succeeded in opening 1.5 crore bank accounts and had as its goal the direct benefit transfer of subsidies, pensions, insurance, and other benefits. The programme focuses especially on the unbanked poor.