CAUSES OF POVERTY IN INDIA AND GOVERNMENT MEASURES TO REMOVE POVERTY

Ø  CAUSES OF POVERTY IN INDIA AND GOVERNMENT MEASURES TO REMOVE POVERTY
INDIAN ECONOMY

INDIAN ECONOMY

Ø  SHASHI AGGARWAL ECONOMICS AND LAW CLASSES

Ø  ECONOMICS,COMMERCE AND MANAGEMENT GROUP

Ø  CAUSES OF POVERTY

1. HEAVY PRESSURE OF POPULATION:-POPULATION IN INDIA HAS BEEN INCREASING VERY RAPIDLY. IN THE YEAR 2007-2008 OUR POPULATION SIZE WAS 113.8 CRORE AND GROWTH RATE OF POPULATION IS 1.34%.HIGH POPULATION GROWTH RATE IS ONE OF THE MAJOR REASONS OF POVERTY IN INDIA. THIS FURTHER LEADS TO HIGH LEVEL OF ILLITERACY,POOR HEALTH CARE FACILITIES AND LACK OF ACCESS TO FINANCIAL RESOURCES.IT S EXPECTED THAT BY 2026 INDIA WILL REACH 1.5 BILLION. AND INDIA WILL BE THE LARGEST NATION IN THE WORLD.
2. INCREASE IN PRICES:-IN INDIA PRICES SHOWED INCREASING TENDENCY, IN 2007-2008 THE AVERAGE RATE IN PRICES HAS BEEN 6.7%. RISE IN PRICES WILL MAKE THE POOR UNABLE TO MEET THEIR BASIC NEEDS.

3. LESS NATIONAL INCOME AND SLOW ECONOMIC GROWTH:- AS COMPARED TO POPULATION GROWTH OF NATIONAL INCOME IS ALSO VERY LOW. HENCE PER CAPITA INCOME IS ALSO VERY LOW. POPULATION HAS BEEN GROWING AT THE RATE OF 2.1 AND RATE OF GROWTH OF NATIONAL INCOME IS VERY LESS
4. CHRONIC UNEMPLOYMENT AND UNDER EMPLOYMENT:-IN 2004-05 THE NUMBER OF UNEMPLOYMENT IN INDIA WAS AROUND 347 LACS. IN 2006-2007 THE NUMBER OF UNEMPLOYMENT WERE EXPECTED TO BE 405 LACS.
5. RURAL ECONOMY:-52% PERCENT PEOPLE ARE ENGAGED IN AGRICULTURE WHEREAS IN OTHER COUNTRIES A VERY SMALL PROPORTION OF POPULATION IS ENGAGED IN AGRICULTURE . SHARE OF AGRICULTURE IS ONLY 17.2% IN NATIONAL INCOME

6. CAPITAL DEFICIENCY:-ECONOMIC BACKWARDNESS IS DUE TO LACK OF CAPITAL DEFICIENCY. LOW SAVING LEADS TO LESS INVESTMENT    AND LESS INCOME.
7. LACK OF ABLE AND EFFICIENT ENTREPRENEUR
8. LACK OF PROPER INDUSTRIALIZATION
9. OUTDATED SOCIAL INSTITUTIONS: LIKE CASTE SYSTEM,JOINT FAMILY,LAW OF INHERITANCE AND LAW OF INHERITANCE AND SUCCESSION.
10. UNDER UTILIZATION OF NATURAL RESOURCES
11. MEANS OF TRANSPORTATION IN RURAL AREA IS VERY UNSATISFACTORY
12. NATURAL CALAMITIES
13. CORRUPTION

14. UNEQUAL DISTRIBUTION OF INCOME:-HUMAN DEVELOPMENT REPORT 2007-2008 TOP 20 PERCENT POPULATION HOLD 45,3 PERCENT OF OUR NATIONAL INCOME WHILE BOTTOM 20% HAS ONLY 8,1 PERCENT OF NATIONAL INCOME.
15. LACK OF TECHNICAL EDUCATION
16. REGIONAL DIMENSION OF POVERTY SOME STATES LIKE KERALS, HARYANA,TAMIL NADU ETC HAVE REDUCED THEIR POVERTY BUT STATES LIKE UP, BIHAR AND MP,WEST BENGAL ETC HAVE HIGH PROPORTION OF POVERTY,

Ø  CAUSES OF RURAL POVERTY IN INDIA

• GEOGRAPHICAL FACTOR:-

a)    UNPREDICTABLE MONSOON AND WEATHER WHICH IMPACT THE CROP PRODUCTION AND YIELD

b)    NATURAL CALAMITIES

• PERSONAL FACTORS:-

1. SICK NESS
2. NOT ENOUGH FOOD FOR POOR FAMILY AND LACK IN IMMUNITY
3. POVERTY AND SICKNESS FORM VICIOUS PARTNERSHIP EACH HELPING THE OTHER TO ADD TO THE MISERIES OF MOST UNFORTUNATE OF MANKIND.
4. LAZINESS AND NOT WILLING TO WORK
5. ADDICTION TO DRUGS,DRINKING AND OTHER SOCIAL EVILS

• BIOLOGICAL FACTORS:- RAPID GROWTH IN IN POPULATION ALSO LEADS TO POVERTY IN INDIA.

1. ECONOMIC FACTORS:- RURAL INDIA DEPENDS UPON AGRICULTURE FOR EVERY THING. BUT MOST OF THE FARMERS STILL RELY ON TRADITIONAL METHODS. ANNUAL PRODUCTION IS VERY LESS. FAULTY SUPPLY CHAIN AND MISMANAGEMENT ALSO CAUSE THE FARMERS TO SUFFER THE MOST.

• MAJOR ANTI POVERTY PROGRMME TO REMOVE RURAL POVERTY

1. INTEGRATED RURAL DEVELOPMENT PROGRAMME/SWARNAJAYANTI GRAM SWAROZGAR YOJNA:-STARTED IN 1980 WITH AN OBJECTIVE OF ALL ROUND DEVELOPMENT OF RURAL POOR. FOCUSES ON PROVIDING SELF EMPLOYMENT
2. SAMPOORNA GRAMIN ROZGAR YOJNA:-IN 2001 TO PROVIDE EMPLOYMENT TO POOR PEOPLE
3. PRADHMANTRI GRAODAYA YOJANA:-IN 2000 TO VILLAGE LEVEL DEVELOPMENT ESPECIALLY IN THE AREA OF PRIMARY HEALTH,PRIMARY EDUCATION,HOUSING ,RURAL ROADS AND DRINKING WATER AND NUTRITION
4. NATIONAL RURAL EMPLOYMENT GUARANTEE SCHEME(NREGS):-IN 2006 FOR PROVIDING LEGAL GUARANTEE FOR 100 DAYS OF WAGE EMPLOYMENT.
5. ANTIDAYA ANNA YOJANA:-INITIATED IN 2000 WITH AN OBJECTIVE OF PROVIDING FOOD SECURITIES TO POOR FAMILIES
6. MAJOR ANTI POVERTY PROGRMME
7. NATIONAL HOUSING BANK VOLUNTARY DEPOSIT IN 1991 TO MAKE USE OF BLACK MONEY FOR CONSTRUCTING LOW COST HOUSING FOR THE POOR.
8. DEVELOPMENT OF WOMEN AND CHILDREN IN RURAL( DWCRA) IN 1982 FOR PROVIDING APPROPRIATE OPPORTUNITIES OF SELF EMPLOYMENT TO THE RURAL WOMEN LIVING BELOW THE POVERTY LINE.
9. JAN SHREE BIMA YOJNA:-IN 2000 FOR PROVIDING INSURANCE SECURITY TO PEOPLE LIVING BELOW POVERTY LINE
10. SHIKSHA SAHYOG YOJANA IN 2001 FOR PROVIDING EDUCATION TO CHILDREN LIVING BELOW POVERTY LINE

• INITIATIVES BY THE INDIAN GOVERNMENT TO ERADICATE EXTREME POVERTY
• DEEN DAYAL UPADHYAY GRAM KAUSHAL YOJNA(DDUGKY):-THIS SCHEME EMPOWERS THE YOUTH IN RURAL REGIONS WITH SKILLS AND EARNING CAPACITY ON MONTHLY BASIS. VALUABLE SCHEME FOR THE POOR IN INDIA IN WHICH PROPER TRAINING IS IMPARTED.
• PRADHAN MANTRI KAUSHAL VIKAS YOJNA (PMKVY) OR SKILL INDIA:- WAS LAUNCHED ON 16 TH JULY 2015 WITH A AIM TO ALLEVIATE POVERTY. TO UP SKILL AROUND 40 CRORE INDIAN YOUTH IS ITS ULTIMATE AIM. NEW SECTORS FOR SKILL DEVELOPMENT IS IDENTIFIED FOR STUDENTS.
• PRADHAN MANTRI GARIB KALYAN YOJNAY(PMGKY):-PRO POOR WELFARE SCHEME. THE GOVERNMENT IS PARTICULARLY MOTIVATED THE MEMBERS OF PARLIAMENT TO BRING THE POOR PEOPLE IN LIME LIGHT BY ARRANGING SKILL ORIENTED WORKSHOP.

  

• AYUSHMAN BHARAT SCHEME:- WAS LAUNCHED ON APRIL 14,2018 BY THE CENTRAL GOVERNMENT TO FOCUS ON THE WELLNESS OF THE POOR FAMILIES AND PROVIDING MEDICAL BENEFITS TO THEM. UNDER THIS SCHEME 10 CRORE POOR FAMILIES WILL BE PROVIDED IN INSURANCE COVER OF RS 5 LACS EVERY YEAR AND WILL UNDER GO CASHLESS TREATMENT AT GOVERNMENT RECOGNIZED PRIVATE HOSPITALS