The continued existence of poverty in India has been causing inefficiency hindering development and economic growth. The vicious circle of poverty coupled with low income and low productivity has been a great challenge to the policy makers in India. Although, poverty rate is showing a declining trend over the decades, India being a highly populous country, the count of poor is still a mindboggling figure. In recent years there has been debate on the poverty level in India and the poverty figures have come under the scanner of researcher scholars and academicians across the country. However, it is an undeniable fact that India is still grappling with poverty with significant regional disparities. Therefore, the question is how severe is the poverty in India and how much time India will take to eradicate poverty under business as usual scenario. Author has made an attempt in this paper to understand the severity of poverty by poverty decomposition using FGT analysis. Further, the Author has worked out annual compound poverty reduction rate from 1993-94 to 2011-12, which is used to estimate how many years required for eradicating poverty. Author observes that poverty severity is a concern and opines that targeted and well defined measures need to be adopted to overcome the problems of poverty in India.
Volume 11 | 06-Special Issue
Pages: 1797-1800