Agriculture and related activities in rural India contribute to 33% of the Gross Domestic Product, and is responsible for the employment of over 60% of the workforce. What people eat most within food — cereals, pulses, fruits? Asian Development Review, 31 1 , pp. The vast majority of the rural poor in India are engaged in agriculture including fishery and livestock , either as agricultural wage laborers or marginal farmers. The 1943 famine was not an isolated tragedy. Poverty: 2011-2012 Percentage of people by Caste Findings below are based on a survey conducted during 2011-12.
The million dollar question, or, if you will, the Rs 32 question, is: How does one define the poverty line in India, in which old yardsticks may not hold good, either in terms of the food that money can buy or in terms of defining who the poor are. By early 20th century, 3 out of 4 Indians were employed in agriculture, famines were common, and food consumption per capita declined in every decade. Further, larger the size of a family, lower is the per capita income. Care has to be taken that this period is representative of general pattern of consumption. Table 4: Poverty in India: Poverty Ratio % Year Rural Urban Combined 1977-78 53. With this change, one can determine that as the prices in poor countries become lower, their currencies become stronger in purchasing power. Rowntree was the first investigator to attempt a rigorous definition of poverty in subsistence terms.
But they , whenever they are out, are unlikely to change the overall picture. The plan panel's earlier figures showed that poverty was declining by 1. The Government after detailed examination has decided to accept the proposal of the Director of Rural Development and Panchayat Raj and accordingly order to fix the cut off mark as 17 for identification of a family as Below Poverty Line family. This index can be higher or lower for the same head count measure of poverty depending upon the distribution of the poor between less and more poor. Here, from the consumption basket of the people, the expert groups pick up the most essential commodities. Persons below a pre-defined threshold income are called poor. This means that 763 million people in India were living below this poverty line in 2011.
An alternative way of calculation of poverty line can be one based on Income of the population. However, a larger portion of a monthly expenditure goes to food in poor households in developing countries, while housing, conveyance and other essentials cost significantly more in developed economies. . In his classic study of poverty in the city of New York. Per capital per month available at:. The Commission has been estimating the poverty line and poverty ratio since 1997 on the basis of the methodology spelt out in the report of the Expert Group on 'Estimation of Number and Proportion of Poor' popularly known as Lakdawala Committee Report.
Each state in India has its own poverty threshold to determine how many people are below its poverty line and to reflect regional economic conditions. This means that the index is on an ascending scale between 0 and 1. The poverty ratio in 2011-12 The percentage of persons below poverty line in 2011-12 has been estimated at 25. For setting poverty line and methodology of constructing it, the Planning Commission appointed Expert Groups from time to time. India India, a south asian nation is home to world largest number of poor people. It has been implemented since then. Essay Measures to Reduce Poverty: The most common measure of poverty is to count the number of persons below the poverty line and express it as a percentage of total population in the country.
India's current official poverty rates are based on its Planning Commission's data derived from so-called Tendulkar methodology. Expert Group 2009 Tendulkar Methodology 1. Food Consumption: To find out types and quantity of food they consume; reasons for the kind of food they consume, and expenditure involved on the food consumption. How poverty is measured in other countries? For example, Dandekar and Rath in 1971 suggested a measure of poverty rate that was based on number of calories consumed. Essay Meaning of Poverty: Poverty as a phenomenon has existed since the beginning of known history.
It sparked of a furious row, as these numbers were considered unrealistic and too low. It is the twenty-first century and poverty still is a persistent menace in the country. Absolute Poverty Line refers to a threshold income consumption level defined in absolute terms. The latest poverty line defined was by Rangarajan Formula. This means that 763 million people in India were living below this poverty line in 2011. The Rangarajan committee was set up last year to review the Tendulkar committee methodology for estimating poverty and clear the ambiguity over the number of poor in the country. If we take consumption pattern of Nonfood item such as clothes or footwear, we find that in a normal household, these are once or twice in year expenditure.
Lakadawala found earlier estimates of poverty unreliable and suggested an alternative approach for identifying poor in which different poverty-line was determined for different states on the basis of price level of that particular state. So, the task force should first decide the benchmark expenditure and then arrive at the cut-off limit. Poverty is a social as well as a multidimensional phenomenon. Do these statistics accurately measure what poverty is, and what is the next step in poverty reduction for middle-income countries like India? According to Department of Telecommunications of India the phone density reached 73. The concept of poverty is therefore considered to cover more than the word poor may convey ordinarily. In democracy, government attempts to narrow this gap by taking up task of redistribution of resources.
Among the union territories, the Dadra and Nagar Haveli was the highest, with 39. Poverty Line The old formula for estimating the poverty line is based on the desired calorie requirement. The current estimations of poverty are based upon the recommendations of this committee. Poverty line: More than a number One the primary uses of the poverty estimates is to provide subsidised entitlements to the poor. Economic measures There are several definitions of poverty, and scholars disagree as to which definition is appropriate for India. Based on the Suresh Tendulkar panel's recommendations in 2011-12, the poverty line had been fixed at Rs 27 in rural areas and Rs 33 in urban areas, levels at which getting two meals may be difficult. Government Schemes to Eradicate Poverty Government efforts to alleviate poverty in India cannot be overlooked while discussing poverty.