Urban Poverty In India

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India is a rapidly growing economy with an ever growing urban population. With the rise in urban population the urban areas in India have become a place to foster poverty and deprivation at a scale and extent previously unseen. It is estimated that by 2030, 590 million people will be living in Indian cities which is nearly twice the population of U.S.A. today. This figure indicates the extent of severity of the future of urban poverty in India. This report is an attempt at understanding the changing scenario of poverty in India and the various concepts and definitions associated with it. This report first summarizes the different definitions of poverty and affordability worked out by experts, government and international organizations. After…show more content…
This something can be in terms of money, can be in terms of services and facilities, in terms of opportunities, social influence and so on. According to a definition given by World Bank in 2002, poverty is deprivation of “well-being”.
Now, well-being can be defined as how much hold an individual in the society has over commodities, so people are in a better condition if they have more command over resources. This concept measures poverty as to whether a household or an individual has access to enough resources to meet their needs. Thus, poverty is measured by setting up a benchmark of minimum, and based on that benchmark, people are classed poor or non-poor.
Another approach to poverty measurement is to find out if people have access to a specific type of good or facility. It can be food, or shelter, or health care, or education etc. in this case, poverty is to be measured beyond the conventional monetary measures.
Amartya Sen gave a broader concept of poverty. His argument is that poverty can be measured by how much capability an individual has to function in the society. Poverty arises when people are unable to address certain key capabilities, or have inadequate opportunities to health and education facilities, or insecurity, or the absence of rights such as freedom of
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India had its first report on urban poverty in 2009, which was backed by the United Nations development program. Indicators of urban poverty as stated by the report include: Income, Health, Education, Security of tenure and personal empowerment.
Poverty Indices
Quantifying poverty has always been a crucial and tough task for the committees. There are various indices developed over time which deal with fundamental questions such as how many people will be considered poor in a society. For this, first of all we need to define a poverty line which can differ in urban and rural area, then what is the distribution of income among poor and how much money will be required to take the affected people out of poverty. Handbook on poverty and inequality provided by World Bank define poverty with the help of following indices.

The headcount index (P0) measures the proportion of the population that is poor. It is famous because it is easy to understand and measure. But it does not indicate how poor the poor
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