Social Science (Economics)

Chapter 3 – Poverty as a Challenge

1. Describe how the poverty line is estimated in India?

Answer:
A person is considered poor if his or her income or consumption level falls below a given
“minimum level” necessary to fulfil the basic needs. This minimum level is called the poverty
line. In India, the poverty line is estimated by multiplying the prices of physical quantities
like food, clothing, footwear, fuel, light, education, etc. in rupees. The numbers involved in
determining the poverty line vary for different years. Also, the poverty line for rural areas is
different from that of the urban areas because the work, lifestyle and expenses are different
for rural and urban areas.
2. Do you think that present methodology of poverty estimation is appropriate?
Answer:
No, the present-day methodology of poverty estimation does not seem to be completely
appropriate. This is because the only factor is taken into consideration is the economic
status, and moreover, it considers a minimum subsistence of living instead of a reasonable
status of living. Poverty, today is a larger concept than only the economic status of the
people. With advancements and development, the definition of poverty has also changed.
People may have been able to feed themselves and their family, but education, shelter,
health, job security and dignity are still at a threat. To overcome poverty entirely, all the
above-mentioned factors also need to be kept in consideration. To completely remove
poverty from the country, the methodology to estimate poverty should also be changed.
3. Describe poverty trends in India since 1973.
Answer:
The Economic Survey of 2017-18 shows that although poverty has declined in the country,
the number of poor still remains very high. The poverty ratio of 1993-94 for both rural and
urban areas together was at 45% and the ratio for the year 2011-12 has declined down to
22%. However, the topic of concern still remains that there has not been any massive
decline in the number of poor living in the country. From 404 million poor population in
both rural and urban areas together in 1993-94. The poor population till 2011-12 remains to
be 270 million for both rural and urban areas. The survey clearly tells that the concerned
authorities must take some serious steps in order to make India a country free of poverty.
4. Discuss the major reasons for poverty in India.
Answer:
The major reasons for poverty in the country are:
 1. The low level of economic development under British colonial rule. The policies of
the colonial government ruined traditional handicrafts and discouraged the
development of industries like textiles.
2. The spread of the Green Revolution created many job opportunities for the people
of the country, yet they were not sufficient in comparison to the number of job
seekers.
3. Unequal distribution of land and resources is another important factor for poverty in
India.
4. In order to fulfil social obligations and religious ceremonies the poor end up
spending a lot which results in poverty.
5. Inequality in the income of the people is also a major reason for poverty.

5. Identify the social and economic groups which are most vulnerable to poverty in India.
Answer:
The social groups which are most vulnerable to poverty in India are:

1. Scheduled Caste Households

2. Scheduled Tribe Households

The economic groups which are most vulnerable to poverty in India are:

1. Rural Agricultural Labour Households

2. Urban Casual Labour Households

6. Give an account of interstate disparities of poverty in India

Answer:
Poverty in India differs for different states. The success rate of reducing poverty varies from
state to state, causing inter-state disparities in poverty level. Orissa, Bihar and Madhya
Pradesh are the three poorest states in India with their people living below the poverty line
being 47, 42 and 37 per cent, respectively. Jammu and Kashmir, Punjab and Himachal
Pradesh are the three better-off states in India as far as poverty is concerned. There are
various factors that are responsible for these interstate disparities of poverty in India.
7. Describe global poverty trends.
Answer:
The success rate of reducing poverty varies from state to state, causing inter-state
disparities in poverty level. Orissa, Bihar and Madhya Pradesh are the three poorest states
in India with their people living below the poverty line being 47, 42 and 37 per cent,
respectively. Jammu and Kashmir, Punjab and Himachal Pradesh are the three better-off
states in India as far as poverty is concerned. There has been a substantial reduction in
global poverty. Poverty declined in China and South-East Asian countries as a result of rapid
economic growth and huge investments in the development of human resources. In Latin
America, the ratio of poverty remained almost the same. In sub-Saharan Africa, poverty saw
an upward trend rather than a downward trend. It rose from 41% in 1981 to 46% in 2001.
Poverty has surfaced itself in some of the former socialist countries like Russia, where
formerly it was non-existent.
8. Describe current government strategy of poverty alleviation.
Answer:
Removal of poverty has been one of the major objectives of Indian developmental strategy.
The current anti-poverty strategy of the government is based broadly on two planks, being,
promotion of economic growth and targeted anti-poverty programmes. Awareness is being
spread across the nation specifying the importance of education, which has resulted in the
increase of literacy level. Various schemes like Mahatma Gandhi National Rural Employment
Guarantee Act, 2005, Swarnajayanti Gram Swarozgar Yojana (SGSY), Pradhan Mantri
Gramodaya Yojana (PMGY) and Prime Minister Rozgar Yojana (PMRY) have been introduced
by the government with an aim to abolish poverty from the country.
9. Answer the following questions briefly.
(i) What do you understand by human poverty?
Answer:
Human poverty is a term that means that poverty in India is not just limited to the economic
status of the people but rather spreads in various other sectors, which include lack of
education, negligence of health care system, discrimination and disparity. Abolishing
poverty from the country should not be the only aim of the authorities but to abolish human
poverty must be the aim.
(ii) Who are the poorest of the poor?
Answer:
Women, female infants and elderly are considered to the poorest of the poor. This is
because in a poor household, these people suffer the most and are deprived of the
maximum necessities in life.
(iii) What are the main features of the National Rural Employment Guarantee Act 2005?
Answer:
The main features of the National Rural Employment Act 2005 are as follows:

1. To provide 100 days of wage employment to every household to ensure livelihood

security
2. Sustainable development to address the cause of drought, deforestation and soil
erosion
3. One-third of the proposed jobs under this scheme have been reserved for women

Poverty as a Challenge Summary

In this chapter, students will study one of the biggest challenges faced by independent India,
i.e., poverty. Also, an urban and rural case of poverty has been discussed in this chapter.
Chapter 3 – Poverty as a Challenge from Class 9 Economics books also talks about:

1. Poverty Line
2. Poverty Estimate
3. Global Poverty Scenario
4. Interstate Disparities
5. Causes of Poverty
6. Anti Poverty measures