Poverty in India Essay

1771 WordsJun 16, 20148 Pages
Absolute Poverty When Income of a person is not sufficient to provide the basic necessities of life, he/she is said to be in absolute poverty. Relative Poverty Relative poverty occurs when a comparison of the standard of living or income distribution of various income groups is undertaken in a country. The income inequalities between different groups are a reflection of relative poverty.In India people living below poverty line are quite high as compared to other Asian countries like Malaysia, Thailand and China. According to the projections of the Planning Commission poverty is expected to decline to 18 per cent in 2002 and further to 4 per cent in 2012. Causes One cause is a high population growth rate, although demographers generally agree that this is a symptom rather than cause of poverty. While services and industry have grown at double-digit figures, agriculture growth rate has dropped from 4.8% to 2%. About 60% of the population depends on agriculture whereas the contribution of agriculture to the GDP is about 18%.[51] The surplus of labour in agriculture has caused many people to not have jobs. Farmers are a large vote bank and use their votes to resist reallocation of land for higher-income industrial project. Caste system Further information: Caste system in India According to S. M. Michael, Dalits constitute the bulk of poor and unemployed.[52] According to William A. Haviland, casteism is widespread in rural areas and continues to segregate Dalits.[53] Others, however, have noted the steady rise and empowerment of the Dalits through social reforms and the implementation ofreservations in employment and benefits.[54][55] India's economic policies In 1947, the average annual income in India was US$619, compared with US$439 for China, US$770 for South Korea, and US$936 for Taiwan. By 1999, the numbers were US$1,818 India; US$3,259 China; US$13,317

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