Q13. Though there have been several different estimates of poverty in India, all indicate a reduction in poverty over time. Do you agree? Critically examine with reference to urban and rural poverty indicators.

Model Answer:

Introduction

Poverty is typically defined in two ways:

• Absolute Poverty: Refers to a set standard that is consistent over time and across countries. Individuals are considered poor if they cannot meet the basic needs for survival, such as food, shelter, and clothing.
• Relative Poverty: This considers the economic status of an individual compared to the broader society. People are considered relatively poor if their income is significantly less than the average, leading to a lower quality of life. 

Body

 Trends in Poverty Reduction

• Quantitative Estimates: According to the World Bank, India reduced its poverty rate from approximately 47% in 1993 to about 22% in 2011, and more recent estimates suggest further declines. The Multidimensional Poverty Index (MPI) also indicates a decline in poverty across various indicators.
• Economic Growth: Rapid economic growth in India, particularly after the liberalization in 1991, has contributed significantly to poverty reduction. Increased employment opportunities, higher income levels, and improved access to services have played crucial roles.

 Urban vs. Rural Poverty Indicators

• Urban Poverty:some text
  • Incidence: Urban poverty rates have been decreasing but remain significant. According to recent estimates, urban poverty is around 17% of the urban population.
  • Characteristics: Urban poverty is often associated with inadequate housing, lack of sanitation, and limited access to services like healthcare and education. Informal employment is prevalent, which leaves many without social security.
• Rural Poverty:some text
  • Incidence: Rural poverty is higher than urban poverty, with estimates showing around 30% of the rural population living below the poverty line.
  • Characteristics: Rural poverty is characterized by lower agricultural productivity, limited access to markets, and inadequate infrastructure. Issues such as droughts and lack of irrigation exacerbate rural poverty. 

Methodological Issues

• Data Variability: Different poverty lines and methodologies used by organizations such as the Planning Commission, NITI Aayog, and the World Bank can lead to varying estimates.
• Poverty Measurement: Traditional measures often focus on income alone, ignoring multidimensional aspects such as health, education, and living standards. The MPI offers a more comprehensive view but is not universally adopted.

Critique of Poverty Reduction Claims

• Sustainability: While statistics show a decline in poverty, questions remain about the sustainability of this reduction, particularly in light of economic disruptions like the COVID-19 pandemic, which has led to job losses and increased vulnerability among both urban and rural populations.
• Inequality: The reduction in poverty does not account for rising inequality. A significant portion of the population may remain economically insecure, facing risks due to high inequality levels.
• Regional Disparities: Some regions in India have shown slower rates of poverty reduction, often due to governance issues, lack of infrastructure, and socio-economic challenges.

Conclusion

In conclusion, while there is substantial evidence to suggest a reduction in poverty in India over time, it is crucial to recognize the complexities involved. The disparities between urban and rural poverty, the influence of economic policies, and the need for sustainable measures to address ongoing challenges are essential considerations. To maintain and further the progress made, targeted interventions, inclusive policies, and a focus on reducing inequality are vital. 

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