Poverty is one of the most frequently asked topics in Class 12 Economics (Indian Economic Development). Below are important questions with clear, exam-ready answers to help you prepare quickly and effectively.
What is Poverty?
Poverty refers to a state in which a section of the population is unable to fulfil even the basic necessities of life such as food, clothing, shelter, education, and healthcare.
Q1. What are the two main approaches to measure poverty?
- Absolute Poverty – Measured on the basis of a fixed minimum level of income or consumption needed to meet basic needs. India mostly uses this approach.
- Relative Poverty – Measured by comparing the income levels of different sections or regions of the population.
Q2. What is the Poverty Line?
The poverty line is a benchmark used to identify who is poor and who is not, based on the minimum level of income or consumption expenditure required to fulfil basic needs. In India, it has traditionally been calculated on the basis of a minimum calorie intake — 2,400 calories per person per day in rural areas and 2,100 calories in urban areas.
Q3. What are the main causes of poverty in India?
- High population growth
- Low agricultural productivity
- Unequal distribution of land and other resources
- Low rate of economic development in the past
- High unemployment and underemployment
- Price rise and inflation
- Social factors such as lack of education
Q4. What is the difference between Chronic Poor and Churning Poor?
| Category | Meaning |
|---|---|
| Chronic Poor | People who are always poor or usually poor |
| Churning Poor | People who move in and out of poverty (sometimes above, sometimes below the poverty line) |
| Occasionally Poor | People who are rich most of the time but occasionally face poverty |
| Never Poor | People who are never poor |
Q5. What steps has the Government of India taken to remove poverty?
- Growth-oriented approach – Promoting overall economic growth so that its benefits reach the poor (trickle-down effect).
- Poverty Alleviation Programmes – Direct schemes targeted at the poor, such as:
- MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act)
- National Food for Work Programme
- Pradhan Mantri Gram Sadak Yojana
- National Rural Livelihood Mission
Q6. Why have poverty alleviation programmes not been fully successful?
- Unequal distribution of land and resources
- Lack of proper implementation and monitoring
- Corruption at various levels
- Overlapping of schemes without coordination
- Low level of political will in certain regions
Q7. One-mark questions for quick revision
- Define poverty line. — A benchmark of minimum income/consumption needed to fulfil basic needs.
- Name two poverty alleviation programmes. — MGNREGA, PM Gram Sadak Yojana.
- What is the rural poverty line calorie requirement? — 2,400 calories per day.
Conclusion
Poverty remains one of the biggest challenges for the Indian economy even today. Understanding its causes, measurement, and government interventions is essential for scoring well in this chapter. Practice these questions along with NCERT diagrams and data tables for full marks.
Related: Read our posts on Role of Agriculture in Indian Economy and Land Reforms in India.
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