Poverty and Unemployment in India

Only available on StudyMode
  • Topic: Unemployment, Underemployment, Structural unemployment
  • Pages : 6 (1394 words )
  • Download(s) : 1878
  • Published : October 17, 2012
Open Document
Text Preview
Poverty and Unemployment in India

Presented by Md Akram Saba(09HS2027)

Types of Poverty
• Absolute Poverty • Relative Poverty

Relative Poverty

• Relative Poverty refers to the Income or Asset Position of one individual,Class or Group of People in comparison with the other individual,Classes or Groups.

Absolute Poverty
• Absolute poverty is associated with a Minimum Level Living or Minimum Consumption Requirements of Food,Clothing,Housing,Health,etc. • All those People who fail to Secure Income or Assats to have access to even these Minimum Consumption Requirements are classified as “Poor”.

Poverty Line
• Poverty Line is drawn on the basis of Expenditure that is necessary to Secure the Minimum Acceptable Living Standard for Work & Efficiency. • Since,Food is the most Basic Requirement,thus,Poverty Line is drawn on the basis of a Minimum Necessay Nutritional Standard expressed in terms of Calories Per Day.

Poverty Line(contd..)
• In India,the Minimum Calories intake of a Person has been put at 2,400 in Rural Area & 2,100 in Urban Areas. • To convert this Calorie intake based on Poverty Line into a Monetary Measure of Poverty,the Cost of Minimum Consumption Requirements of Food providing the minimum calories is calculated at prevailing Price. • Thus,Government defined a person with an Income of Less than Rs.368(Rural) & Rs.559(Urban) per month as living below poverty line. • The Planning Commission's new official poverty line is Rs.32(Urban) &Rs.26(Rural) by accepting the Suresh Tendulkar Committee’s recommendation of calculating poverty,making the Minimum Calories intake of a Person 1,700 calories.

List of the states in increasing order of poverty based on the MPI MPI rank

States

Population (in millions) 2007

MPI

Proportion of poor

Average intensity

Contribution to overall poverty

Number of MPI poor (in millions)

1 2 3 4 5 6 7 8 9 10 11 12 — 13 14 15 16 17 18 19 20 21

Kerala Goa Punjab Himachal Pradesh Tamil Nadu Uttarakhand Maharashtra Haryana Gujarat Jammu And Kashmir Andhra Pradesh Karnataka India Eastern Indian States West Bengal Orissa Rajasthan Uttar Pradesh Chhattisgarh Madhya Pradesh Jharkhand Bihar

35.0 1.6 27.1 6.7 68.0 9.6 108.7 24.1 57.3 12.2 83.9 58.6 1,164.7 44.2 89.5 40.7 65.4 192.6 23.9 70.0 30.5 95.0

0.065 0.094 0.120 0.131 0.141 0.189 0.193 0.199 0.205 0.209 0.211 0.223 0.296 0.303 0.317 0.345 0.351 0.386 0.387 0.389 0.463 0.499

15.9% 21.7% 26.2% 31.0% 32.4% 40.3% 40.1% 41.6% 41.5% 43.8% 44.7% 46.1% 55.4% 57.6% 58.3% 64.0% 64.2% 69.9% 71.9% 69.5% 77.0% 81.4%

40.9% 43.4% 46.0% 42.3% 43.6% 46.9% 48.1% 47.9% 49.2% 47.7% 47.1% 48.3% 53.5% 52.5% 54.3% 54.0% 54.7% 55.2% 53.9% 56.0% 60.2% 61.3%

0.6% 0.0% 1.0% 0.3% 2.6% 0.5% 6.0% 1.3% 3.4% 0.7% 5.1% 4.2% 4.0% 8.5% 4.3% 7.0% 21.3% 2.9% 8.5% 4.2% 13.5%

5.6 0.4 7.1 2.1 22.0 3.9 43.6 10.0 23.8 5.4 37.5 27.0 645.0 25.5 52.2 26.0 41.9 134.7 17.2 48.6 23.5 77.3

Poverty in India
• There has been no uniform measure of poverty in India. • The Latest National Sample Survey 2004-05 shows that a percentage of people living below Poverty Line has reduced from 26% in 1999-2000 to about 22% in200405. • The Planning Commission of India has accepted the Tendulkar Committee report which says that 37% of people in India live below the poverty line. • The N.C. Saxena Committee report states that 50% of Indians live below the poverty line. • The Arjun Sengupta Report (from National Commission for Enterprises in the Unorganised Sector) states that 77% of Indians live on less than 20 a day.

Causes of Poverty
• • • • Rapidly growing Population is a major cause of Low Per Capita Income & Poverty in India. Large Scale Unemployment causes lowering of the Levels of Living of People. Inequalities in Income & Assets Distribution cause Additional Income from Development to be cornered by a few Rich People. Infaltion has reduced Purchasing Power of Money.This has reduced Real Income & thus people can buy less...
tracking img