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Recent positive economic developments in India have mainly helped upper- and middle-class Indians. India still suffers from substantial poverty: 34.7% of India's poorest population (the population that lives on 3/4 of the poverty line or less) still subsist on less than US$1 a day; 79.9% live on US$2 per day. The National sample survey organisation (NSSO) estimated that 26.1% of the population was living below the poverty line in 1999–2000, down from 51.3% in 1977–1978. The criterion used was monthly consumption of goods below Rs. 211.30 for rural areas and Rs. 454.11 for urban areas. 75% of the poor are in rural areas (27.1% of the total rural population) with most of them comprising daily wagers, self-employed households and landless labourers. The major causes for poverty are unemployment or under-employment, low ownership of assets (especially productive assets like land and farm equipment) and illiteracy.

Since the early 1950s, successive governments have implemented various planning schemes to alleviate poverty; these have met with partial success. The programmes have improved upon the strategies of the Food for work programme and National Rural Employment Programme of the 1980s, which attempted to use the unemployed to generate productive assets and build rural infrastructure. In August 2005, the Indian Parliament passed the Rural Employment Guarantee Bill, the largest programme of this type in terms of cost and coverage, which promises 100 days of minimum wage employment to every rural household, in 200 of India's 600 districts. Template:Inote The question of whether economic reforms have reduced poverty or not has fueled debates without generating any clearcut answers, and has also put political pressure on further economic reforms, especially those involving downsizing of labour and reduction of agricultural subsidies.

See also

Standard of living in India

Notes

1. ^ Cite error: The named reference survey was invoked but never defined (see the help page).
2. Mehta, Aasha (2002). "Chronic poverty in India: overview study". Chronic Poverty Research Centre. Retrieved 2006-07-24. {{cite web}}: Unknown parameter |coauthors= ignored (|author= suggested) (help)
3. ^ Datt, Ruddar & Sundharam, K.P.M. "22". Indian Economy. pp. 367, 369, 370.{{cite book}}: CS1 maint: multiple names: authors list (link)
4. "Jawahar gram samriddhi yojana". Retrieved July 9. {{cite web}}: Check date values in: |accessdate= (help); Unknown parameter |accessyear= ignored (|access-date= suggested) (help)

• Poverty by country
• Economy of India