Poverty and Development Issues in India
Poverty is one of the biggest challenges of Indian society. It refers to a condition where people do not have enough resources to meet their basic needs like food, clothing, shelter, education, and healthcare. Poverty is not just lack of income but also lack of opportunities, dignity, and social security.
India, despite being one of the fastest-growing economies, still struggles with widespread poverty. Poverty is deeply linked with development issues such as unemployment, illiteracy, poor health, social inequality, and regional imbalance.
Understanding poverty and its related problems is very important for civil services aspirants because it directly affects policy-making, governance, and social justice.
1. Meaning of Poverty
Types of Poverty
- Absolute Poverty – When people cannot even meet basic survival needs (food, shelter).
- Example: Below Poverty Line (BPL) families in rural areas.
- Relative Poverty – Inequality in society where some people have much less compared to others.
- Example: Slum dwellers in metro cities living beside luxury apartments.
- Multidimensional Poverty – Includes deprivation in health, education, housing, sanitation, etc.
2. Poverty in India – Current Situation
- As per NITI Aayog Multidimensional Poverty Index (MPI) Report 2023, about 13.5 crore people moved out of poverty between 2015–16 and 2019–21.
- Yet, a large number of Indians remain poor.
- Rural poverty is higher than urban poverty.
| Indicator | Data (approx) | Remarks |
|---|---|---|
| Poverty Headcount Ratio (World Bank, 2019 est.) | ~10% | Still a significant number in absolute terms |
| Rural Poverty | ~25% households affected | Linked to agriculture dependence |
| Urban Poverty | ~15% households affected | Slums, informal workers |
| Global Hunger Index 2023 | Rank 111/125 | Indicates food insecurity |
Note: Poverty is not uniform. Some states like Bihar, Jharkhand, and Odisha show higher poverty levels, while Kerala and Tamil Nadu are relatively better.
3. Causes of Poverty in India
(a) Historical Reasons
- Colonial exploitation drained India’s wealth.
- Traditional caste-based occupations limited mobility.
(b) Economic Causes
- High population growth → pressure on resources.
- Dependence on agriculture (low productivity).
- Unemployment and underemployment.
- Inflation reduces purchasing power.
(c) Social Causes
- Illiteracy and lack of awareness.
- Gender inequality (women earn less, less access to jobs).
- Social discrimination (Dalits, tribals often excluded).
(d) Political/Administrative Causes
- Corruption and leakages in welfare schemes.
- Regional imbalance – backward states left behind.
4. Poverty and Its Associated Issues
(a) Unemployment
- Lack of jobs for growing youth population.
- Leads to poverty, migration, and social unrest.
(b) Malnutrition and Hunger
- Poverty → inability to buy nutritious food.
- India has high child stunting and wasting rates.
(c) Poor Health
- Lack of money → no access to proper healthcare.
- High maternal mortality and infant mortality.
(d) Lack of Education
- Children from poor families drop out early.
- Leads to cycle of poverty across generations.
(e) Housing and Slums
- Millions live in kutcha houses or slums.
- Example: Dharavi in Mumbai.
(f) Social Inequality
- Dalits, tribals, and women are more vulnerable to poverty.
(g) Crime and Social Unrest
- Poverty often pushes people into crime or exploitation.
5. Development Issues Linked to Poverty
Development is the process of improving the quality of life of people. Poverty creates major obstacles in this path.
| Development Issue | Link with Poverty | Example |
|---|---|---|
| Education | Poor cannot afford school | High dropout rates in Bihar |
| Health | Poverty limits access | Malnutrition in tribal areas |
| Employment | Lack of skills and capital | Informal workers in cities |
| Gender equality | Poor women face double burden | Low literacy among rural women |
| Infrastructure | Poor regions lack roads, electricity | Backwardness in tribal belts |
Remark: Without addressing poverty, development cannot be inclusive or sustainable.
6. Government Efforts to Reduce Poverty
(a) Five-Year Plans (till 2017)
- Integrated Rural Development Program (IRDP), Employment Guarantee Schemes, etc.
(b) Major Anti-Poverty Programs
| Scheme/Program | Objective |
|---|---|
| MGNREGA (2005) | 100 days wage employment guarantee |
| PMAY (2015) | Affordable housing for poor |
| PDS & NFSA (2013) | Food security to poor families |
| PM-KISAN (2019) | Direct cash support to farmers |
| Skill India Mission (2015) | Skill training for employment |
| Ayushman Bharat (2018) | Health insurance for poor |
(c) Direct Benefit Transfer (DBT)
- Transfers subsidies and benefits directly to poor families, reducing corruption.
7. Role of NGOs and Civil Society
- NGOs like SEWA (Self-Employed Women’s Association) and Pratham help in poverty reduction through microfinance, women empowerment, and education.
- Civil society creates awareness and holds government accountable.
8. Global Perspective
- According to World Bank, global extreme poverty is measured at $2.15 per day (PPP).
- India has lifted millions out of poverty in recent decades but still contributes a large share to world poverty figures.
Note: UN’s Sustainable Development Goal (SDG 1) aims to end poverty in all forms by 2030.
9. Case Studies
Kerala Model
- High literacy, healthcare, and women empowerment → poverty reduced faster.
Odisha’s KALIA Scheme
- Provides financial support to farmers → reduces rural distress.
Kudumbashree (Kerala SHG Model)
- Women Self-Help Groups providing micro-credit and employment.
10. Way Forward
- Inclusive Growth: Ensure benefits reach the poor.
- Skill Development: Prepare youth for jobs in industry and services.
- Education for All: Focus on quality schooling.
- Healthcare Access: Strengthen public health system.
- Women Empowerment: Provide equal opportunities and wages.
- Agricultural Reform: Improve productivity and market access.
- Good Governance: Reduce corruption, ensure transparency.
- Regional Development: Special focus on backward states and districts.
- Social Security Net: Pensions, health insurance, food security.
- Sustainable Development: Balance between growth and environment.
Conclusion
Poverty is not just an economic problem but a social issue affecting dignity, equality, and justice. Though India has made progress in reducing poverty, millions still suffer from hunger, malnutrition, and lack of basic needs.
Development cannot be meaningful unless it is inclusive and sustainable. Addressing poverty through education, employment, healthcare, women empowerment, and good governance is the only way to ensure social justice.
Key Takeaway:
As Mahatma Gandhi said, “Poverty is the worst form of violence.” Reducing poverty is not just a policy goal, it is a moral responsibility for building a just and prosperous India.
