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Question
Discuss the poverty estimates since 1973-74 for the country as a whole and draw out main trends for rural and urban areas.
Very Long Answer
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Solution
Since 1973-74, poverty in India has shown a declining trend overall. In 1973-74, about 55% of the population lived below the poverty line, which fell to 22% by 2011-12. The rural poverty ratio declined from 56.4% in 1973-74 to 25.7% in 2011-12, while urban poverty declined from 49% to 13.7% during the same period. The rural poverty remains higher than urban poverty, with about 75% of poor people living in rural areas. Urban poverty largely stems from rural poor migrating in search of employment, but industrial and service sectors have not absorbed all migrants, keeping urban poverty significant as well.
| Population Below Poverty Line (in million) | Poverty Ratio (Per cent) | |||||
| Year (1) |
Rural (2) |
Urban (3) |
Combined (4) |
Rural (5) |
Urban (6) |
Combined (7) |
| 1973-74 | 261.3 | 60.0 | 321.3 | 56.4 | 49.0 | 54.9 |
| 1983 | 252.0 | 70.9 | 322.9 | 45.7 | 40.8 | 44.5 |
| 1993-94 | 244.0 | 76.3 | 320.3 | 37.3 | 32.4 | 36.0 |
| 2004-05 | 325.8 | 81.4 | 407.2 | 42.0 | 25.5 | 37.2 |
| 2009-10 | 278.2 | 76.5 | 354.7 | 33.8 | 20.9 | 29.8 |
| 2011-12 | 216.7 | 53.2 | 269.8 | 25.7 | 13.7 | 21.9 |
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