question_answer 4)

Table 3.1 Estimates of Poverty in India

	Poverty ratio (%)			Number of poor (in millions)
Year	Rural	Urban	Combined	Rural	Urban	Combined
1973-74 1993-94 1999-00	56.4 37.3 27.1	49.0 32.4 23.6	54.9 36.0 26.1	261 244 193	60 76 67	321 320 260

  Study the table 3.1 and answer the following questions   (i) Even if poverty ratio declined between 1973-74 and 1993-94 why did the number of poor remain at about 320 million?   (ii) Are the dynamics of poverty reduction the same in rural and urban areas?  

Answer:

(i) The poverty ratio declined between 1073-74 and 1993-94 but the number of poor remained at about 320 million because the total population of the country increased during the same period. Out of this increased population more people got employment due to the green Revolution, establishment of more industries and growth of the tertiary sector. As result the poverty ratio declinsed. (ii) No, the dynamics of poverty reduction are not the same in rural and urban areas because the conditions in both the areas are completely different. Urban area poverty has decreased due to expansion of the service sector, increased industrialisation and consequent increase of jobs. This has resulted in migration to cities and towns from rural areas. Rural area poverty has reduced due to improved agricultural practices resulting in higher incomes. Some contribution to this improvement is due to the migration to urban areas.