{"id":364079,"date":"2026-06-01T17:41:07","date_gmt":"2026-06-01T12:11:07","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=364079"},"modified":"2026-06-01T17:41:07","modified_gmt":"2026-06-01T12:11:07","slug":"poverty-a-persistent-concern","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/poverty-a-persistent-concern\/","title":{"rendered":"Poverty, a persistent concern"},"content":{"rendered":"

Source: <\/strong>The post \u201cPoverty, a persistent concern\u201d <\/strong>has been created based on “Poverty, a persistent concern\u201d,<\/strong> published in \u201cBusiness Line\u201d<\/strong> on 01st June 2026.<\/p>\n

UPSC Syllabus: <\/strong>GS Paper 3\u2013 Indian Economy<\/p>\n

Context:<\/strong> Poverty continues to be a major developmental challenge in India despite improvements in welfare schemes and social protection systems. Based on recent consumption expenditure data and the Rangarajan Committee approach, about 26.8% of India’s population<\/strong>, or nearly 374 million people<\/strong>, remains below the poverty line. The persistence of poverty in specific regions indicates that it is largely structural and regional in nature.<\/p>\n

Nature and Extent of Poverty in India<\/strong><\/h2>\n
    \n
  1. It is estimated that 29% of the rural population<\/strong> and 22% of the urban population<\/strong> live below the poverty line.<\/li>\n
  2. Nearly 374 million people<\/strong> require subsistence-based support and interventions.<\/li>\n
  3. The States of Uttar Pradesh, Bihar, Madhya Pradesh, and West Bengal<\/strong> account for more than 48% of the poor population<\/strong>, although their share in the total population is less than 40%.<\/li>\n
  4. States such as Jharkhand, Chhattisgarh, and Odisha<\/strong> have poverty rates exceeding 45% of their population<\/strong>.<\/li>\n
  5. Around 80% of the poor population<\/strong> is concentrated in ten States, indicating a strong regional concentration of poverty.<\/li>\n
  6. States such as Punjab, Haryana, Sikkim, Goa, and Tripura<\/strong> have significantly lower poverty levels and have largely succeeded in eliminating extreme poverty.<\/li>\n<\/ol>\n

    Reasons for Structural and Regional Poverty<\/strong><\/h2>\n
      \n
    1. Subsistence Agriculture<\/strong><\/li>\n<\/ol>\n
        \n
      1. Poverty is concentrated in States where agriculture remains subsistence-oriented and productivity is low.<\/li>\n
      2. States such as Uttar Pradesh, Bihar, and Assam continue to face high levels of poverty due to limited agricultural transformation.<\/li>\n<\/ol>\n
          \n
        1. Mineral-Rich Regions<\/strong><\/li>\n<\/ol>\n
            \n
          1. Several mineral-rich States, including Madhya Pradesh, Chhattisgarh, Jharkhand, Odisha, Rajasthan, and West Bengal, continue to experience high poverty levels.<\/li>\n
          2. The benefits of natural resource extraction have not adequately translated into broad-based local development.<\/li>\n<\/ol>\n
              \n
            1. Limited Economic Diversification<\/strong><\/li>\n<\/ol>\n
                \n
              1. Poverty-prone States have a lower share of employment in industry, information technology, professional services, banking, and public administration.<\/li>\n
              2. As a result, workers remain dependent on low-productivity sectors for their livelihoods.<\/li>\n<\/ol>\n
                  \n
                1. High Dependency Ratio<\/strong><\/li>\n<\/ol>\n
                    \n
                  1. Poverty-stricken States have a dependency ratio of about 47%<\/strong>, which is higher than that of better-performing States.<\/li>\n
                  2. A higher dependency burden reduces household savings and investment capacity.<\/li>\n<\/ol>\n
                      \n
                    1. Limited Impact of Migration<\/strong><\/li>\n<\/ol>\n
                        \n
                      1. Migration has not emerged as a complete solution because migrants often face language barriers, social isolation, and poor living conditions.<\/li>\n
                      2. Therefore, poverty continues to remain persistent in the source regions.<\/li>\n<\/ol>\n
                          \n
                        1. Structural Nature of Poverty<\/strong><\/li>\n<\/ol>\n
                            \n
                          1. The relatively lower Gini coefficients in States such as Bihar and Uttar Pradesh suggest that poverty is not primarily driven by inequality.<\/li>\n
                          2. The persistence of poverty despite welfare measures indicates the existence of deep structural constraints.<\/li>\n<\/ol>\n

                            Measures to Address Persistent Poverty<\/strong><\/h2>\n
                              \n
                            1. Measures for Mineral-Rich Areas<\/strong><\/li>\n<\/ol>\n
                                \n
                              1. District Mineral Foundation (DMF) funds should be utilized for skill development and employment generation.<\/li>\n
                              2. Greater investments should be made in schools, primary health centres, and nutrition programmes.<\/li>\n
                              3. Infrastructure development should be prioritized to improve connectivity and economic opportunities.<\/li>\n
                              4. Incentives should be provided to establish processing and value-addition industries near mining regions.<\/li>\n
                              5. Local economies should be diversified to reduce excessive dependence on mining activities.<\/li>\n
                              6. Corporate Social Responsibility (CSR) funds should be used more effectively for local development.<\/li>\n<\/ol>\n
                                  \n
                                1. Measures for Areas of Subsistence Agriculture<\/strong><\/li>\n<\/ol>\n
                                    \n
                                  1. Agricultural reforms should be undertaken to improve productivity and efficiency.<\/li>\n
                                  2. Land consolidation should be promoted to achieve economies of scale.<\/li>\n
                                  3. Farmers should be encouraged to shift towards high-value agriculture and crop diversification.<\/li>\n
                                  4. Effective price stabilization mechanisms should be developed to reduce income uncertainty.<\/li>\n
                                  5. Non-farm employment opportunities should be created in nearby rural and semi-urban areas.<\/li>\n<\/ol>\n
                                      \n
                                    1. Governance and Social Measures<\/strong><\/li>\n<\/ol>\n
                                        \n
                                      1. Development programmes should focus on local resource endowments and local needs.<\/li>\n
                                      2. Local entrepreneurship should be promoted to generate sustainable employment opportunities.<\/li>\n
                                      3. Targeted and time-bound social protection systems should be strengthened to support vulnerable populations.<\/li>\n<\/ol>\n

                                        Conclusion:<\/strong> India has achieved considerable success in reducing extreme poverty through welfare programmes, food security measures, and improved access to basic amenities. However, poverty remains deeply entrenched in specific regions characterised by subsistence agriculture and mineral dependence. A strategy focused on structural transformation, local economic development, human capital formation, and region-specific interventions is essential for achieving inclusive and sustainable poverty reduction.<\/p>\n

                                        Question: <\/strong>Poverty in India is increasingly structural and region-specific despite significant reductions in extreme poverty. Examine the nature of poverty in India and suggest measures to address persistent poverty pockets.<\/p>\n

                                        Source: <\/strong>Businessline <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

                                        Source: The post \u201cPoverty, a persistent concern\u201d has been created based on “Poverty, a persistent concern\u201d, published in \u201cBusiness Line\u201d on 01st June 2026. UPSC Syllabus: GS Paper 3\u2013 Indian Economy Context: Poverty continues to be a major developmental challenge in India despite improvements in welfare schemes and social protection systems. Based on recent consumption… Continue reading Poverty, a persistent concern<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230],"tags":[12044,216,8184],"class_list":["post-364079","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","tag-business-line","tag-gs-paper-3","tag-indian-economy","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/364079","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=364079"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/364079\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=364079"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=364079"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=364079"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}