Poverty & Unemployment is part of Social Development. Below are notes on 9 sub-topics, followed by practice MCQs from State PSC and UPSC papers.

Causes and Determinants of Poverty in India (Economic, Social, Demographic, Structural)

  • Economic Factors: Low agricultural productivity (fragmented land, tech gap); high unemployment/underemployment; inflation; low capital formation; limited access to credit/markets; colonial economic exploitation.
  • Social Factors: Caste & gender discrimination; illiteracy & poor education access; poor health/nutrition; social exclusion; poverty contributing to social issues like delinquency.
  • Demographic Factors: High population growth (resource pressure); high dependency ratio; unplanned urbanization.
  • Structural/Institutional Factors: Unequal land/asset distribution; ineffective land reforms; feudal exploitation (e.g., Vethi/ forced labor, excessive rents); wartime exac‐
  • Changpa Community: Primarily lives in Ladakh; rears Pashmina goats for fine wool; recognized as Scheduled Tribes.
  • Ministry of Social Justice and Empowerment (MoSJE) - Social Defense: Concerns include substance abuse prevention, care of older persons, beggary prevention, and welfare of transgenders. Does not cover minimum wages of labour.
  • First Aadhaar Gaon: Thembali village (Nandurbar, Maharashtra).
  • Mohiniattam: A classical Indian dance form known for solo performance.
  • De-notified Tribes (DNTs): Communities previously classified as 'Criminal Tribes' under the Criminal Tribes Act of 1871.
  • Devadasis Institution: Historically associated with the Jagannath temple, Puri.
  • CAPART (Council for Advancement of People's Action and Rural Technology): Established for rural development.
  • DoSJE & NALSA MoU: Department of Social Justice and Empowerment signed an MoU with National Legal Services Authority (NALSA) to enhance public awareness of social justice schemes.

tions & rationing abuses; weak governance/ corruption; poor infrastructure; market imperfections; limited access to justice for the poor against exploitation.

Concepts and Measurement of Poverty (Absolute, Relative, Poverty Line, Multi-dimensional Poverty Index)

  • Poverty: Condition where individuals lack financial resources and essential goods/ services for a minimum standard of living.
  • Absolute Poverty: Defined by a fixed minimum standard necessary for survival (e.g., food, shelter, clothing). Measured against a Poverty Line. Focuses on severe deprivation, irrespective of income distribution.
  • Relative Poverty: Defined in relation to the living standards of the majority in a society (e.g., individuals with income below 50-60% of the median). Highlights inequality and social exclusion, common in developed countries.
  • Poverty Line: Monetary value of per capita minimum consumption expenditure to satisfy basic needs.
  • Poverty Estimation in India (Key Committees):
    • Dadabhai Naoroji (1901): 'Jail Cost of Living' (Rs 16-35/year), first estimate.
    • Planning Commission Working Group (1962): Rs 20 (rural) & Rs 25 (urban) per month.
    • V.M. Dandekar & N. Rath (1971): First systematic study, 2250 kcal/ person/day for both rural/urban.
    • Y.K. Alagh Committee (1979): Calorie norms (2400 rural, 2100 urban); based on food items only.
    • Lakdawala Committee (1993): Used CPI-AL (rural) and CPI-IW (urban); state-specific poverty lines.
    • Tendulkar Committee (2009): Shifted from calorie to consumption expenditure (food, education, health); poverty line Rs 816 (rural) & Rs 1000 (urban) per month. Used Mixed Reference Period (MRP).
    • Rangarajan Committee (2014): Revised Tendulkar's methodology; higher poverty lines Rs 972 (rural) & Rs 1407 (urban) per month. Used Modified Mixed Reference Period (MMRP).
  • Multi-dimensional Poverty Index (MPI):
    • Developed by UNDP and Oxford Poverty and Human Development Initiative (OPHI) in 2010. Replaced Human Poverty Index (HPI).
    • Measures acute deprivation in health, education, and living standards at the household/individual level.
    • 3 Dimensions: Health, Education, Standard of Living.
    • 10 Indicators:
      • Health: Nutrition, Child Mortality.
      • Education: Years of Schooling, School Attendance.
      • Standard of Living: Cooking Fuel, Sanitation, Drinking Water, Electricity, Housing, Assets.
    • A person is MPI poor if deprived in at least one-third (weighted sum) of the indicators.
  • Cultural Poverty: Concept given by Oscar Lewis.
  • Poverty as a social problem: Outcome of research on poverty in London by Charles Booth.

Definition and Types of Unemployment (Cyclical, Structural, Frictional, Disguised, Seasonal, Educated)

  • Unemployment Definition: A situation where people who are able and willing to work at the prevailing wage rate cannot find suitable jobs.
  • Cyclical Unemployment:
    • Caused by downturns/recessions in the business cycle.
    • Decreased aggregate demand leads to reduced production and job cuts.
    • Temporary; recovers with economic expansion.
  • Structural Unemployment:
    • Arises from a mismatch between available jobs and the skills of the workforce.
    • Caused by technological advancements, industrial restructuring, or geographical shifts in industries.
    • Long-term; requires retraining or relocation.
  • Frictional Unemployment:
    • Short-term unemployment experienced by individuals transitioning between jobs, entering the workforce, or searching for a first job.
    • Natural and voluntary; due to imperfect information and the time it takes to match job seekers with vacancies.
  • Disguised Unemployment (Underemployment):
    • Occurs when more people are employed in a sector (e.g., agriculture, informal sector) than are actually needed.
    • Marginal productivity of the extra workers is zero or near zero.
    • Workers appear employed but their removal would not significantly reduce output.
  • Seasonal Unemployment:
    • Occurs in industries with predictable seasonal fluctuations in demand for labor.
    • Common in agriculture, tourism, and construction.
    • Workers are employed for part of the year and unemployed during off-seasons.
  • Educated Unemployment:
    • When educated individuals (e.g., graduates) are unable to find jobs matching their qualifications or any job at all.
    • Caused by a mismatch between the education system's output and industry's demands, lack of employable skills, or insufficient job creation.

Impacts and Consequences of Poverty on Social Development (Health, Education, Gender, Malnutrition)

  • Poverty's health impacts: Increased mortality/ morbidity, poor sanitation, limited healthcare access, higher susceptibility to diseases and epidemics.
  • Poverty's education impacts: Lower enrollment, higher dropout rates, increased child labor, reduced educational attainment due to financial constraints.
  • Poverty's gender impacts: Disproportionately affects women/girls, leading to limited educational/economic opportunities, higher rates of child marriage, and increased genderbased violence.
  • Malnutrition: Direct consequence of poverty and food insecurity. Madhya Pradesh is referred to as "the Ethiopia of India" due to excessive malnutrition.
  • Famine: An extreme consequence of poverty, characterized by widespread deaths due to starvation and epidemics.
  • Quote: Mahatma Gandhi famously stated, "Poverty is the worst form of Violence."

Informal Sector and its role in employment, livelihoods, and poverty

  • Informal Sector (Unorganized Sector): Economic activities operating outside formal regulatory frameworks, not officially registered, taxed, or monitored.
  • Characteristics: Lack of formal contracts, social security benefits (PF, ESI), fixed wages, and legal protection; often involves self-employment, casual labor, or small, unregistered enterprises.
  • Examples of Informal Workers: Street vendors, domestic workers, construction laborers, rag pickers, porters (e.g., at railway stations/bus stands), agricultural laborers, small artisans, daily wage earners.
  • Role in Employment: Major source of employment, particularly for unskilled, semiskilled, less educated populations, women, and rural-urban migrants; acts as a 'last resort' employer.
  • Role in Livelihoods: Provides crucial survival income and a safety net for a large segment of the population, especially in developing economies.
  • Relation to Poverty: While offering employment and mitigating extreme poverty, workers often remain vulnerable to poverty due to low, unstable incomes, poor working conditions, and lack of social protection.
  • Contribution: Significant share in GDP (e.g., over 50% of non-agricultural GDP in India) and total employment (e.g., 80-90% of workforce in India).

Measurement of Unemployment (Labor Force Participation Rate, Worker-Population Ratio, Unemployment Rate, Data sources)

  • Labour Force (LF): Persons aged 15 years and above who are either 'employed' or 'unemployed'.
  • Labour Force Participation Rate (LFPR): Percentage of persons in the labour force in the total population. Formula: (Labour Force / Total Population) 100.
  • Worker-Population Ratio (WPR) / Employment Rate: Percentage of employed persons in the total population. Formula: (Employed Persons / Total Population) 100.
  • Unemployment Rate (UR): Percentage of unemployed persons in the labour force. Formula: (Unemployed Persons / Labour Force) 100.
  • Data Source: National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI).
  • Key Survey: Periodic Labour Force Survey (PLFS), conducted by NSO since 2017.
  • PLFS Unemployment Rate (Reference for MCQ): As per a specific PLFS report, the unemployment rate in the country was 5.8%.

Poverty Alleviation Programmes and Schemes (Government initiatives and their effectiveness)

and

their

effectiveness)

  • Integrated Rural Development Programme (IRDP): Launched 1978-79; aimed at providing self-employment opportunities to rural poor through asset creation and skill development.
  • National Rural Livelihood Mission (NRLM - Aajeevika): Launched 2011; aims to reduce poverty by enabling poor households to access gainful self-employment and skilled wage employment opportunities.
  • Pradhan Mantri Gramin Awas Yojana (PMGAY): Launched 2016 (rebranded from Indira Awas Yojana, 1985); aims to provide housing for eligible rural poor.
  • Ayushman Bharat Yojana (PMJAY): Launched 2018; a national health protection scheme providing health coverage to poor and vulnerable families; primarily a social security/health scheme, not a direct income/ asset-based poverty alleviation program.
  • United Nations Decade of Family Farming (UNDFF): Declared by the UN for the period 2019-2028.
  • United Nations Decades for Eradication of Poverty: First (1997-2006) and Second (2008-2017).

Relationship between Poverty, Unemployment, and Income Inequality

  • Population growth often increases labor supply beyond job creation capacity.
  • Excess labor supply contributes significantly to unemployment.
  • Unemployment directly results in a lack of income, leading to poverty.
  • Poverty is characterized by inadequate nutrition, poor sanitation, and limited access to healthcare.
  • Poor living conditions and malnutrition due to poverty increase susceptibility to diseases.
  • Disease, especially when untreated or severe, can lead to premature death.
  • This causal chain (Population → Unemployment → Poverty → Disease → Death) is a critical aspect of social development challenges.
  • Income inequality is often exacerbated by high unemployment and widespread poverty, concentrating wealth and opportunities.
  • The term 'Socialist' was introduced in the Preamble of the Indian Constitution by the 42nd Amendment Act, 1976.
  • West Bengal has the highest number of beggars as per data released by the Union Ministry of Social Justice.
  • The Khairwar Scheduled Tribe traditionally makes 'Catechu' (kattha).
  • Criteria for classifying Particularly Vulnerable Tribal Groups (PVTGs) include pre-agricultural level of technology, declining or stagnant population, extremely low literacy rate, and a subsistence economy.
  • Child labour in India: As per Census 2011, 10.1 million (5-14 years). Some older estimates (e.g., early 2000s) have cited figures around 35 million.
  • Bezwada Wilson is one of the founders of the "Safai Karmachari Andolan".
  • The Mandal Commission submitted its report to the President on December 31, 1980.

Practice MCQs: Poverty & Unemployment

Causes and Determinants of Poverty in India (Economic, Social, Demographic, Structural)

  1. Why was Doddi Komaraiah, a village militant, murdered on 4 July, 1946, in Janagam taluka of Nalgonda ?

    Asked in: APSC CCE Prelims Exam 2018

    1. He was Razakar who fought against the Deshmukh, hence was murdered.
    2. For trying to defend a poor washer-woman's mite of land.
    3. For defending thugs employed by the desh‐ mukh.
    4. For opposing wartime exactions, rationing abuses, excessive rents and Vethi (forced labour).
    Show answer

    Answer: B. For trying to defend a poor washer-woman's mite of land.

    This incident is considered a key trigger for the Telangana Peasant Struggle (1946-1951). Peasants CAPART stands for the Council for Advancement of People's Action and Rural Technology. As the name suggests, its primary objective was to promote rural development in India by acting as a nodal agency to support and fund voluntary organizations (NGOs) engaged in implementing rural development programmes and disseminating appropriate rural technologies.

  2. The Department of Social Justice and Empowerment (DoSJE) recently signed an MoU with which organisation to enhance public awareness about social justice schemes?

    Asked in: opsc 2025 2025

    1. Ministry of Defence
    2. National Human Rights Commission (NHRC)
    3. National Legal Services Authority (NALSA)
    4. Central Vigilance Commission
    Show answer

    Answer: C. National Legal Services Authority (NALSA)

    This question is about a recent governmental initiative and partnership related to social justice and empowerment. in the region were suffering under the oppressive rule of the Nizam of Hyderabad and the exploitative practices of landlords (Deshmukhs and Jagirdars), including forced labour (vethi) and illegal exactions. Doddi Komaraiah, a member of the Communist Party, was part of a group resisting a landlord's attempt to seize the land of a poor washer-woman (Chakali Ilamma). He was shot dead during this resistance.

  3. Swaraj Party was formed following the failure of :

    Asked in: BPSC Prelims Exam 60 62rd

    1. Non-Cooperation Movement
    2. Civil Disobedience Movement
    3. Rowlatt Bill Satyagraha
    4. Champaran Satyagraha
    Show answer

    Answer: A. Non-Cooperation Movement

    The 'No-Changers' within the Congress, led by Gandhians, were against council entry, while the 'Pro-Changers', who formed the Swaraj Party, advocated for entering the councils to obstruct government functioning from within. This split arose directly from the aftermath and failure of the Non-Cooperation Movement to achieve Swaraj within one year as promised.

  4. Which is not the cause of delinquency?

    Asked in: Sr. Teacher Gr.II Comp. Exam 2016 2 2016

    1. Physical defect
    2. Poverty
    3. Failure
    4. Proper home environment
    Show answer

    Answer: D. Proper home environment

    A proper home environment is a protective factor, not a cause, of delinquency.

Concepts and Measurement of Poverty (Absolute, Relative, Poverty Line, Multi-dimensional Poverty Index)

  1. The idea of 'Cultural Poverty' was given by

    Asked in: UPPCS Prelims 2020

    1. Oscar Lewis
    2. Gunnar Myrdal
    3. Aashish Bose
    4. Amartya Sen
    Show answer

    Answer: A. Oscar Lewis

    - The concept of the 'culture of poverty' was developed by American anthropologist Oscar Lewis in the 1960s. - Lewis proposed that poverty is not merely a lack of resources but also a way of life, a subculture that is passed down through generations, characterized by certain values, behaviors, and beliefs that perpetuate poverty.

  2. 'Poverty is regarded as a social problem' which was the outcome of a survey research on poverty in London. Who was the Scholar of this research?

    Asked in: UPPCS Prelims 2022

    1. Sir Henary Maine
    2. Henary George
    3. Kingsley Davis
    4. Charles Booth
    Show answer

    Answer: D. Charles Booth

    This question refers to a landmark study in the history of social science research and the understanding of poverty.

Definition and Types of Unemployment (Cyclical, Structural, Frictional, Disguised, Seasonal, Educated)

  1. * (Directions for questions : 194 to 196) In the following figure, circle shows Literate, triangle shows Unemployed, square Villagers. Study the diagram carefully and answer the following questions : 195. Total no. of illiterate villagers who are employed is -

    Asked in: GPSC Prelims CSP 1 2019

    1. 12
    2. 14
    3. 4
    4. 20
    Show answer

    Answer: A. 12

    - The figure represents relationships between Literate (Circle), Unemployed (Triangle), and Villagers (Square). - Illiterate people are NOT Literate, meaning they are outside the Circle. - Villagers are inside the Square. - Employed people are NOT Unemployed, meaning they are outside the Triangle. - We need the region representing (NOT Literate) AND (Villagers) AND (NOT Unemployed). This is the part of the Square that is outside both the Circle and the Triangle.

Impacts and Consequences of Poverty on Social Development (Health, Education, Gender, Malnutrition)

  1. The widespread deaths due to starvation and epidemics are the characteristics of

    Asked in: UPSC CAPF 2021

    1. famine
    2. poverty
    3. civil war
    4. malnutrition
    Show answer

    Answer: A. famine

    Famine is defined as a widespread scarcity of food, often accompanied by regional malnutrition, starvation, epidemic, and increased mortality. The conditions described - widespread deaths due to starvation and epidemics - are precisely the defining characteristics and consequences of a famine event. Lack of food leads to starvation, weakening the population and making them highly susceptible to infectious diseases (epidemics), resulting in mass deaths.

  2. Which one of the following States is called "the Ethiopia of India" because the excessive malnutrition?

    Asked in: UPPSC Upper Mains 2010

    1. Bihar
    2. Madhya Pradesh
    3. Jharkhand
    4. Orissa
    Show answer

    Answer: D. Orissa

    The comparison "Ethiopia of India" has historically been used, particularly in media and reports, to highlight severe poverty, hunger, and malnutrition issues in certain regions of India. Districts like Kalahandi in Odisha were notoriously associated with starvation deaths and chronic malnutrition in the past, leading to such unfortunate comparisons.

  3. Who said 'Poverty is the worst from of Violence'?

    Asked in: APPSC Gazated Posts 2012

    1. Mahatma Gandhi
    2. B.R. Ambedkar
    3. Jawaharlal Nehru
    4. Man Mohan Singh
    Show answer

    Answer: A. Mahatma Gandhi

    This quote highlights Gandhi's view that extreme poverty inflicts significant harm and suffering on individuals and society, comparable to physical violence.

Informal Sector and its role in employment, livelihoods, and poverty

  1. Who helps to carry luggage at a railway station platform?

    Asked in: Assistant Engineer (Civil) 2018 19 2018

    1. Plumber
    2. Porter
    3. Gastronome
    4. Bouncer
    Show answer

    Answer: B. Porter

    This question tests vocabulary and knowledge of common professions and their roles.

Measurement of Unemployment (Labor Force Participation Rate, Worker-Population Ratio, Unemployment Rate, Data sources)

  1. What was the unemployment rate according to 'Periodic Labour Force Survey (PLFS)' in the country?

    Asked in: Head Master Praveshika School (Sanskrit Edu.) 2021

    1. (1) 5.8%
    2. (2) 5%
    3. (3) 7.9%
    4. (4) 9%
    Show answer

    Answer: A. (1) 5.8%

    The question asks for the unemployment rate in India as per the Periodic Labour Force Survey (PLFS).

Poverty Alleviation Programmes and Schemes (Government initiatives and their effectiveness)

  1. Which of the following is not a poverty alleviation programme?

    Asked in: WBCS Main Paper 5 2023

    1. Integrated Rural Development Programme
    2. Ayushman Bharat Yojana
    3. Pradhan Mantri Gramin Awas Yojana
    4. National Rural Livelihood Mission
    Show answer

    Answer: B. Ayushman Bharat Yojana

    - Poverty alleviation programmes aim to directly address income deficits, create assets, or provide employment/livelihoods for the poor. - Integrated Rural Development Programme (IRDP), Pradhan Mantri Gramin Awas Yojana (PMGAY), and National Rural Livelihood Mission (NRLM) are directly focused on these aspects in rural areas. - Ayushman Bharat is a health-focused scheme providing insurance coverage and primary healthcare access.

  2. The Decade 2019-2028 is declared by United Nations as the

    Asked in: Economic Investigator(EI) 2018

    1. United Nations Decade of Sustainable Energy for all
    2. United Nations Decade of Family Farming
    3. United Nations Decade on Biodiversity
    4. United Nations Decade for Eradication of Poverty
    Show answer

    Answer: B. United Nations Decade of Family Farming

    The decade 2019-2028 has been declared the United Nations Decade of Family Farming.

Relationship between Poverty, Unemployment, and Income Inequality

  1. Arrange the words given below in a meaningful sequence : 1. Poverty 2. Population 3. Death 4. Unemployment 5. Disease Select the correct answer using the codes given below.

    Asked in: GS AE PWD 2108 2024

    1. 2, 3, 4, 5, 1
    2. 3, 4, 2, 5, 1
    3. 2, 4, 1, 5, 3
    4. 1, 2, 3, 4, 5
    Show answer

    Answer: C. 2, 4, 1, 5, 3

    This question tests the ability to arrange words in a logical, cause-and-effect, or sequential order. The key is to identify the most probable flow from one concept to another.

  1. The expression 'Socialist' was introduced in the Preamble of Indian Constitution by which amendment ?

    Asked in: BPSC Prelims Exam 60 62rd

    1. 42nd Amendment
    2. 44th Amendment
    3. 46th Amendment
    4. 74th Amendment
    Show answer

    Answer: A. 42nd Amendment

    - The 42nd Amendment, passed during the Emergency, made several significant changes to the Constitution and is often referred to as the 'Mini- Constitution'. - Along with 'Socialist', the words 'Secular' and 'Integrity' were also added to the Preamble by this amendment.

  2. Which State has topped the list of States with most number of beggars, as per data released by the Union Ministry of Social Justice?

    Asked in: BPSC Prelims Exam 63rd

    1. West Bengal
    2. Andhra Pradesh
    3. Bihar
    4. Uttar Pradesh
    Show answer

    Answer: A. West Bengal

    This data highlights the socio-economic challenges related to poverty and begging in different states.

  3. Which is the scheduled tribe, who makes "Catechu" ?

    Asked in: CGPSC Prelims Exam 2016

    1. Binjhwar
    2. Dhanwar
    3. Khairwar
    4. Majhwar
    Show answer

    Answer: C. Khairwar

    The Khairwar tribe is traditionally associated with the extraction of Katha (Catechu) from the Khair tree.

  4. What are the criteria of classify some of the scheduled tribes as ‘PVTG’ ? (i) Caste (ii) Declining population or static population (iii) Extremely low literacy (iv) Sex ratio Code :

    Asked in: CGPSC Prelims Exam 2023

    1. (i) and (ii) are correct
    2. (iii) and (iv) are correct
    3. (i) and (iv) are correct
    4. (ii) and (iii) are correct
    Show answer

    Answer: D. (ii) and (iii) are correct

    The Government of India follows specific criteria for the identification of Particularly Vulnerable Tribal Groups (PVTGs), which were earlier known as Primitive Tribal Groups (PTGs). The criteria are:

  5. Pre-agricultural level of technology. 2. Declining or stagnant population. 3. Extremely low literacy level. 4. Subsistence level economy. Options (ii) and (iii) directly correspond to these established criteria. Caste is not a criterion for PVTG classification (as they are already within Scheduled Tribes), and while sex ratio data is collected and can reflect health/social issues, it is not a primary classification criterion itself. 19. Child labour in India is estimated to be:

    Asked in: UPPCS Prelims 1995

    1. 5 million
    2. 30 million
    3. 35 million
    4. 40 million
    Show answer

    Answer: D. 40 million

    Estimates of child labour in India during the 1990s were a subject of considerable debate, with official figures often lower than those provided by non- governmental sources and international bodies which used wider definitions of child labour.

  6. Out of the persons mentioned below, who is one of the founders of "Safai Karmachari Andolan"?

    Asked in: APPSC Group II Prelims 2016

    1. Kailash Satyarthi
    2. Bezawada Wilson
    3. Bindeshwar Pathak
    4. Kamlaben Gurjar
    Show answer

    Answer: B. Bezawada Wilson

    Safai Karmachari Andolan (SKA) is a human rights movement dedicated to eradicating manual scavenging in India. Bezawada Wilson has been a leading figure in this movement.

  7. The report of Mandal Commission was submitted to President on –

    Asked in: Head Master Praveshika School (Sanskrit Edu.) 2021

    1. November 30, 1990
    2. November 20, 1989
    3. December 20, 1978
    4. December 31, 1980
    Show answer

    Answer: B. November 20, 1989

    The Mandal Commission submitted its report on November 20, 1989.