What is relative poverty ? What are the reasons for its presence in India ? Explain the Gini-coefficient…

Question

What is relative poverty ? What are the reasons for its presence in India ? Explain the Gini-coefficient and Lorenz curve methods of measuring relative poverty.

Ghissu Editorial · Accepted Answer

Relative poverty is having far less income or resources than society's average, persisting in India through unequal growth, regional gaps, social exclusion and weak public services. The Lorenz curve plots cumulative income against population, and the Gini coefficient (0 to 1) measures its gap from equality.

**Introduction**

Relative poverty in India highlights deprivation relative to societal norms despite economic growth, necessitating precise measurement for equitable policy design, especially in states like ==Andhra Pradesh⟦1⟧== where disparities coexist with rapid development.

**Defining Relative Poverty**

1. **Concept and Capability Approach**: Relative poverty means having less income/resources than societal average, limiting social participation; Amartya Sen’s capability approach frames it as deprivation of freedoms beyond income, including health and education, emphasizing multidimensional well-being.

2. **India’s Context and Social Exclusion**: Despite growth, disparities persist; relative poverty captures inequalities in access and opportunity across regions and social groups, with marginalized communities like Scheduled Tribes and Castes facing higher multidimensional poverty rates.

**Reasons for Relative Poverty in India**

1. **Unequal Wealth Distribution**: Top 10% control ~77% of wealth; bottom 50% share only 13%, perpetuating inequality and limiting upward mobility.

2. **Regional and Social Disparities**: ==Andhra Pradesh== shows 9.24% GSDP growth but rural pockets remain poor; Scheduled Tribes face 50.6% multidimensional poverty; health infrastructure gaps include 22% medical officer vacancies and only 175 CHCs vs. 412 needed, restricting essential services.

**Measuring Relative Poverty**

1. **Gini-Coefficient**: Measures income inequality⟦2⟧ from 0 to 1; India’s Gini fell from 28.8 (2011) to 25.5 (2022-23), indicating modest inequality reduction; wealth concentration remains high with top 1% owning 40% of wealth; informs welfare schemes like Jan Dhan Yojana (55 crore accounts) promoting financial inclusion.

**Conclusion**

Gini and Lorenz methods provide critical insights into India’s relative poverty, guiding targeted interventions to reduce inequality and enhance social inclusion, especially in states with uneven development like ==Andhra Pradesh==.

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