Revision Notes for Class 9 Social Science Economics Chapter 3 Poverty as a Challenge

Revision Notes for Class 9 Social Science Economics Chapter 3 Poverty as a Challenge

Chapter 3 Poverty as a Challenge NCERT Notes

Chapter Name

Poverty as a Challenge Revision Notes


CBSE Class 9

Textbook Name

Economics Class 9

Related Readings


  •  Poverty refers to a situation in which a person is not able to get the minimum basic necessities of life e.g. food, clothing, shelter etc. for his or her sustenance.

Poverty in India

  • Every fifth Indian is poor. (Latest data of the World Bank).India is having the largest number of poor people in the world. However, latest report suggests that India is no longer a nation having largest number of poor people in the world. Nigeria overtook India as the country with the largest number of extreme poor. (The Times of India, June 27, 2018)

Two major types of Poverty

Urban Poverty

  • They do not have physical assets and generally live in slums.
  • Rickshaw-pullers, Cobblers, Hawkers, rag pickers, daily wage labourers etc.

Rural poverty

  • People do not have agricultural land.
  • landless farmers, agricultural labrourers, small and marginal farmers etc.

Poverty as seen by social scientists

  • Poverty relates to the level of income and consumption.
  • Apart from this, poverty is looked through other social indicators like illiteracy level, lack of general resistance due to malnutrition, lack of access to healthcare, lack of job opportunities, lack access to safe drinking water, sanitation etc.

Causes of Poverty

  • Policies of British Era.
  • Low economic growth after Independence upto eighties.
  • Population Growth
  • Limited sucess of Green Revolution.
  • Unequal distribution of land and other resources.
  • Socio-cultural factors

Social exclusion

  • According to this concept, poverty is seen in terms of the poor having to live only in a poor surrounding with poor people.


  • Vulnerability to poverty is a measure, which describes the greater probability of certain communities or individuals of becoming, or remaining, poor in the coming years.

Poverty Line

  • A person is considered poor if his or her income or consumption level falls below a given “minimum level” necessary to fulfill basic needs. This minimum level is referred to as Poverty Line.

Determination of Poverty Line in India

On the Basis of Calories

  • In Rural Areas 2400 calories per person per day.
  • In Urban Areas 2100 calories per person per day.

On the Basis of Income

  • In Rural Areas Rs. 816  per month.
  • In Urban Areas Rs. 1000 per month.

Vulnerable Groups

  • Schedule Tribes (ST), Schedule Castes (SC), Agricultural Labourers and Casual Labourers are the most vulnerable groups in India.

Inter-State Disparities

  • The proportion of poor people is not the same in every state. Bihar and Odisha are the poorest states in India.

Poverty decline in states-reasons

  • Punjab and Haryana- Due to high agricultural growth rates.
  • Kerala- owing to more focus on human resource development.
  • West Bengal- Land reforms.
  • Andhra Pradesh and Tamil Nadu- Public distribution of food grains.

National Sample Survey Organisation (NSSO)

  • This organisation estimates the poverty line periodically (normally every five years) by conducting sample surveys.

Global Poverty Scenario

  • According to the World Bank definition, a person living on less than 1.90 US Dollar per day is poor. According to the most recent estimates, in 2013, 10.7 percent of the world’s population lived on less than 1.9 US Dollar a day. (
  • The Sustainable Development Goals (SDG) of the United Nations calls for ending the extreme poverty by 2030.

Anti-Poverty measures

  • Promotion of Economic Growth
  • Targeted anti-poverty programme

Promotion of Economic Growth

  • There is a strong link between economic growth and poverty reduction. Economic growth widens opportunities and provides the resources needed to invest in human development. However, the poor may not be able to take advantage from the opportunities created by economic growth.
  • Growth also increases the government revenues and consequently, it could afford the programs for poverty reduction. That is why these two strategies are also known as complementary to each other.

Targeted Anti-Poverty Programs

  • Mahatma Gandhi National Rural Employment Guarantee Act-2005.
  • Prime Minister Rozgar Yojana
  • Swaranjayanti Gram Swarozar Yojana
  • Pradhan Mantri Gramodaya Yojana
  • Antyodaya Anna Yojana

Mahatma Gandhi National Rural Guarantee Act- 2005

  • Aim: Assuring employment to every rural household.
  • Minimum 100 days of assured employment in a year.
  • One-third jobs are reserved for women.
  • If an applicant is not provided employment within fifteen days he/she is entitled to a daily unemployment allowance.
  • Wage as per the Minimum Wages Act.

Prime Minister Rozgar Yojana (PMRY)

  • Started in 1993.
  • Aim :- To create self-employment opportunities for educated unemployed youth in rural and small towns.
  • Help in setting up small business and industries.

The challenges ahead and new approaches in poverty reduction

  • The Sustainable Development Goals (SDG) of the United Nations calls for ending the extreme poverty by 2030. In this context, reduction of poverty requires innovative approaches in our country. Further, with development, it is expected that the definition of poverty would change.
  • Though, we have been able to maintain high economic growth in the last 20 years, but this has not resulted in creating large number of employment. Further, we need to make anti-poverty schemes more effective. Following new approaches are worth mentioning here:

Jan Dhan Yojana, Aadhar and Mobile (JAM)

  • This trinity could play an important role in widening the reach of the government to the vulnerable sections. This would prevent the leakages in the distribution in the long run.

Universal Basic Income :-

  • It is considered as an alternative to various state subsidies for poverty alleviation Economic Survey, 2017). Though it is still at discussion level, the Universal Basic Income envisages paying the beneficiaries directly into their bank accounts to help reduce leakage.
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