RISE IN ECONOMIC POVERTY AND WAYS WE CAN COMBAT IT Poverty,

RISE IN ECONOMIC POVERTY AND WAYS WE CAN COMBAT IT Poverty,

unemployment, conflict, instability, and other circumstances impacting the undeveloped class of people are expected in emerging countries. Poverty is a circumstance in which individuals cannot meet their fundamental necessities to live healthy and pleasant lives. There is a lack of fundamental conditions such as nutritious food, clothing, and adequate shelter. Furthermore, the need for decent health care, a proper education, and a clean environment is beyond the comprehension of this group of individuals. This circumstance has resulted in economic disparities among various categories of people in the economy. Regarding population, two-thirds of Indians live in poverty, and Indian poverty provides one-third of the world’s poverty ratio. After research and consideration of the economic policies, the reasons for poverty have been classified. From historical times, India was a prosperous country with its agricultural supply in the entire world. The conquering by the Britishers exploited and ruined the Indian market leading to poverty among the Indian traders. Even after Independence, when the government took various steps to reduce poverty, it focused on developing the industrial sector. This led to increased poverty because the lower class didn’t have the knowledge to get employed in the industry. Thus, more emphasis should be on expanding the agricultural sector because India has always been a rural country and operates most of the population. The societal circumstances and narrow-minded thinking in India are also a reason for the increase in poverty. The people residing in the underdeveloped regions and small cities face the problem of lack of proper education, so they cannot get better work opportunities. The gender discrimination that created a mentality against educating women has been a significant reason for less income generation. Even if an individual aspires to utilise his abilities and contribute to the nation, he cannot do it because of social causes.

Many methods and strategies are used to measure India’s poverty rate. Famous economists have worked upon these methods and divided poverty into two aspects: relative poverty and absolute poverty. Absolute poverty is complete poverty in regards to the people who are categorised below the poverty line. The poverty line is the minimum expenditure or income that assists in fulfilling the demand for basic needs and services. In comparison, relative poverty is a comparative study between different income classes of the society. Several methods are utilised to measure relative poverty, such as the formation of income group, Lorenz curve, and Gini coefficient. According to an annual report presented in 2013, the lowest poverty was found in Goa at 5.09% and the highest in Chattisgarh at 39.93%. Several representative indicators are considered to know the level and nature of poverty. Income alone cannot be a reason indicating poverty, and other causes are also essential to be taken under consideration. A person’s needs are unlimited, but when they cannot satisfy their basic needs, they are considered poor and do not have high-level requirements. Other indicators of poverty include the calories and nutrition consumed by a person, the average life, level of education, employment background, etc. The quality and ability of these services available for any individual represent the financial state of that person. In India, a significant disparity in income is seen between the wealthy class and the poor class due to unequal per capita income. Presently, the government has realised the poverty situation and has taken various steps by introducing schemes and low-cost services. There are solutions available for bringing a positive change in society by improving the lifestyle of low-income groups. Firstly, the government should focus on the agricultural sector because it employs most of the population. The agricultural activities should involve using modern technology, processed seeds, fertilisers, and modern equipment to improve production.

The industrial sector also plays a vital role in the economy. Financial aid should be provided for developing small-scale industries that employ uneducated people. The taxation policy of India is such that the majority portion of the income of the poor is spent on paying off the high taxes. Thus, the government should make policies that reduce the taxes for the poor class to help them improve their lifestyle. Under ration shops, the poor should be supplied goods reasonably to create food security among these people. The rapid increase in the population of India has given rise to the problem of poverty because of reduced employment opportunities. Proper steps should be taken, and people should be aware of the circumstances created due to the increasing population. Education and skill development is the best solution for attaining a better, high-quality lifestyle. A rise in Human capital Investment should be given attention, and education should be made compulsory in villages too. The more people get employed, the lesser the poverty rate will be. Hence, agencies should initiate effective programmes for poverty eradication focusing on particular groups, including small and marginal farmers, labourers and rural artisans. A famous employment scheme named Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) should be advanced as it significantly increased employment and reduced poverty. To increase per capita and reduce regional inequalities, various schemes should be introduced, bringing a solution to the poor quality of lifestyle. Therefore, the planning system of India should be such that it prioritises the creation of equitable economic development.

By: Navya Madaan

Class-12C,

Pathways School

Noida

Education