Poverty And Wealth

By A. Srinivas,
Among the developing countries, India stands in the second position, since six decades, on which way is this Indian Democracy moving? Answer to this is, on one side increase in poverty and on the other side increase in assets being centralized in the hands of few, this is our democracy.

United Nations Organizations (UNO) has long back reported as, “The absence of income is not the only reason for poverty, but non-availability of facilities such as education, health, proper employment, absence of peoples’ participation in politics is also poverty.” But in India caste is also one of the undeniable reasons for poverty.

United Nations Organizations (UNO) has long back reported as, “The absence of income is not the only reason for poverty, but non-availability of facilities such as education, health, proper employment, absence of peoples’ participation in politics is also poverty.” But in India caste is also one of the undeniable reasons for poverty.

The World Bank did research in various countries considering the peoples earning of 1.5 dollars per day as norm for the study of poverty, but in the past only 1 dollar was considered as criterion but later it was revised to 1.5 Dollars. The estimation of Indian poverty data is based on this study. There are 140 crores of people world wide, whose daily earnings are less than 1.2 dollars (approximately 55 rupees). Wherein, Indian population is more than 100 crores, 45 crores 60 lakhs of these kinds of people are found in India. According to Arjun Sen Gupta committee, 80% of the people live depending on Rs. 20 per day. Due to the drastic increase in the rates of essential commodities from 2005 onwards, the life has become burden to the lower middle class and middle class people as well. 20 crores of people sleep with empty stomach everyday because they do not have anything to eat. To eradicate hunger, India is in the 94th position, and is backward than the neighboring countries such as China and Pakistan.


In India out of 100 new born infants, 67 of them die within a year, 93 of them die within 5 years. One of the reasons according to 2004 report is, out of Gross national Income, only a small percentage is spent on peoples health.

Another thing is out of 194 countries, only 4 countries are spending less than us on health. We are not even in the position of spending 2% of GDP on health.

One, out of five children dying world wide, within five years of age is from our country. According to UNICEF report, ten lakhs of children die every year. In our country 5 lakhs of infants die within 28 days, 60% of women deliver at homes; 78 thousand of women die during pregnancy and delivery.

India is in top position in the case of child labour. 12.6 million Children’s childhood is being destroyed, who are working in various sectors. Poverty is seed bed for child labour. Among them children of rural areas are working as agricultural labour and bonded labour. In urban areas 58% of children are working in hazardous industries. In the education field, among the 100 children admitted in 1st class, only 53% of them reach till 10th class, and 38% reach till degree level. Only 7% of the students are studying higher education (IIM, IIT, MBA).

In fact where did the development and wealth go which was achieved in 60 years? What happened to the efforts, resources and wealth earned by crores of people? A new group of upper middle class emerged in India, which is in 2nd position among the developing countries. Multi storied buildings appeared in big number. Salaries are increasing, therefore consumerism also increased.

IT, BPO sectors created jobs on big scale. The things seen such as resorts, hotels, corporate hospitals, shopping malls, international schools, foreign tours, modern cars, mobiles are only the assets.

The biggest exploitation known in the Human history which got publicity during the time of 2009 elections is of the black money hidden in Swiss bank. 1,50,000 crores dollars i.e. Rs.75,00,000 (seventy five lakhs of crores) of Indian black money is in Swiss bank. This lakhs of crores of money, which is earned in illegal ways by political leaders, corporate, business sectors and corrupted higher officials, is hidden in Swiss bank since many years. Apart from this, still thousands of crores of black money is in our country itself. Our foreign loan is more than 12,50,000 crores, which means the black money in Swiss bank is 5 times more than that of the Indian foreign loan. In this lakhs of crores of money more than 100 crores is of Indians. It was pretended that the efforts are being done to bring back money from Swiss bank. But it seems the UPA government is not interested in doing so.

Our constitution builders clearly stated that the wealth should be decentralized; if wealth is consolidated then the rights provided by the state will be violated. Contrary to this, all the money went into the hands of few people. According to the Forbes Magazine, (Millionaires list) in this list not only Indians names got place but their number as millionaires also increased.
Ours is a starvation country, where more than six lakhs of farmers and weavers attempted suicide and died country wide, who is responsible for these deaths? Who is responsible for this poverty? The statistics clearly visible to us are in the form of declining faith of people on electoral political system. The reason for all this is, if The World Bank, American policies are one aspect; in the matter of destructive development, all the parties possess same type of political acceptance in our country. Party agenda are different, faces are different, but the policies are the same. There is an urgent need to make people aware of their rights and to make people conscious of the importance of the constitutional values and benefits.

A. Srinivas is  Human Rights Activist.

Courtsey: Civil Liberties Monitoring Committee India

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4 Responses to Poverty And Wealth

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  2. sanjay says:

    The picture brought out by you is true but the thing is unless population growth is checked and controlled, this data will not change even after two hundred years from now for India.

    Considering a growth rate(birth rate-death rate) of 2.5% for a pouplation of 120 Crorers, it would come out that an Indian is born in every one second. The economy and other facilities for giving him a decent life cannot expand at this pace. Thats for sure.

    Unfortunately, after 1977, Population control has been a political no-no. Recently, government minister Ghulam Nabi Azad made a small statement that population should be controlled but, perhaps, he was also promptly silenced on this issue.

    Further, the projections are that by 2050, Indian population will be about 150-160 Crorers but only about 40-50 crore people will be lucky enough to have Roti,Kapda and Makaan and that too if continue to grow 7-8% year after year till 2050.

    So we have a long long way to go. But lets keep on moving.

  3. mukesh adhvaryu says:

    I admire Srinivas for addressing this issue, I think it has been imperative that we should shift our focus from all non-productive ideas and issues to some progressive thoughts and strategies as in long run only this things will decide how our future generation will live in our country.
    However, I am not at all in compliance with this article because it lacks to put a light on few vital facts about improvisation and development which had taken place in our country from 1985 till today.
    According to Mckinsey report published in 2007, in year 1985, India’s 93% population lived in a household income less or equal to one dollar a day which in other means below poverty line. By 2005, thanks to economical reforms taken place from 1991 to 2005, the proportion had been cut from 93% to 54% which is almost half of the 1985 scenario. So this means that we were able to pull almost half of the population from below poverty in just 10 years’ time. And it is also projected that If India continue to achieve and sustain the present growth rate or at-least 7.3% till 2025, we will have only 26% of the population living in poverty by 2025.
    In 2007, when the report was published, It was revealed that Indian middle class, earning between 2 to 10 Lakhs a year was of 5 crores which was just 5% of the total population but this middle class will grow from 5 crores to 50 crores- almost 42% of the total population within coming 20 years. In terms of purchasing power parity, this income slab is equal to $23,530- $1,17,650 which is the slab for US middle class.
    Conversion ratio applied is $1=45.70 rupees but as we now dollar has been weakened than it was in 2007 so in long run we can expect the actual figure to be much more than US middle class earning slab.
    So in conclusion, all I need to ask those guys who are only interested in portraying no-hope- so gloomy picture of our country, to be aware of the current situation and contemplate the real scenarios rather then wasting time in writing pessimist flow of thoughts which can not do any good for us.
    It will also be helpful to know what UK House of commons thinks about future economies including India. Here is the link:
    http://www.parliament.the-stationery-office.co.uk/pa/cm200607/cmselect/cmtreasy/90/9007.htm
    I hope this will help us to think in right perspective.
    Jai Hind
    Khuda Hafiz

  4. satwagunam says:

    all of us are aware of this problem. What is the solution. Reduction or control of the denominator to the distribution of wealth is the key.

    What is the individual and soceity doing to control the population. Has every educated indian irrespective of caste, creed and religion try to convince the mass to go for smaller family.

    This reminds me of the fable where the saint asked all the person to keep the road opposite to their house clean. So you donot require a scavenger.