Poverty In India

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The issue of widespread poverty has been a problem in India for a long time. India is one of the countries with the largest population of poor people in the world despite making the reduction of poverty a policy of primary concern. According to Dhongde (2007), one third of individuals were still in absolute poverty in 1993 and 1994, and approximated 50% of poor individuals than the entire Sub-Saharan Africa. However, unlike other nations with extreme levels of poverty, India has recently been one of the fastest developing economies. When nations across the globe suffered slow economic growth back in the 1990s, the per capita GDP in India experienced a 4% annual growth rate. In 1990 to 1991, India faced a serious macroeconomic catastrophe that led to the government implementing several economic reforms in response. Nonetheless,…show more content…
The unfavorable effect was specifically more manifested in the urban sectors than it was in the rural areas. With an increase in the level of mean income absent in the 1990s, income distribution changes would have resulted in an increase in the ratio of headcount poverty by 2% on a mean in the rural region and by over 8% in the urban areas. Therefore, the unequal income distribution design constrained the up surging average levels of income from minimizing poverty to a much higher degree in the urban sector proportionate to the rural sector. In reality, the total decrease in poverty levels in the period after the reforms does not vary considerably from the poverty decrease in the period before, regardless of a rapid increase in the average income level. A rise in the average income with a constant income distribution would have resulted in a greater poverty decrease regarding the ratio of headcount or the gap of poverty or the worthless poverty

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