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The Impact of Poverty on the Human Development Index in India from 2011 to 2017
Submitted By:
Yousra Yasser 14107900
Hager Osama 14107885
Mohammed Mustafa Ahmed 12105837
Submitted to:
Prof. Huda Hassan Ali
Dr. Nadeen Mostafa Mahmoud

Table of Contents:
About India
India’s Economy
India’s Market Size
Problem Statement
Research Problem
Research Objectives
Research Questions
Literature Review (4 studies)
Chapter 1: Types of Poverty
Chapter 2: History of Poverty in India
2.1: Centuries
Chapter 3: Causes of Poverty in India
: How does population affect poverty in India?
3.2: How does healthcare affect poverty in India?
3.3: what is the relationship between poverty, education and healthcare?
3.4: How does education affect poverty in India?
3.5: How does Income affect poverty in India?
3.6: Political and Governmental problems that affect the economic development.

3.7: How does the infrastructure in India affect poverty?
Chapter 4: Government efforts in developing the economic situation in India:
4.1: What are the procedures that the government take to reduce poverty in India?
4.2: What did the government do to reduce poverty in the earlier years?
Research Methodology

About India:
India’s is located in South Central Asia, near China, Bangladesh, Nepal and other countries. It is surrounded by the Arabian Sea, Bay of Bengal, and the Indian Ocean. India is the 3rd largest country in Asia and its capital city is New Delhi. India’s population is estimated to be 1,035,481,000 people. As for their religions it was estimated that 83% of the population are Hindu, 11% are Muslim, 3% are Christian, and 2% are Sikh. Furthermore; India manufactures and processes many things such as; iron.
India’s Economy:
According to the IMF and CSO, India has emerged as the fastest growing economy in the world, and they also expect it to be one of the top 3 economic powers of the world in the next 10-15 years. India’s GDP is estimated to have increased 6.6% in 2017-2018 and will still grow to 7.3 % by 2018-2019.

India’s Market Size:
As prices in India were constant, India’s GDP grew by 7.2% in the last quarter of 2017 states the Central Statistics Organization (CSO). As well as India’s corporate earnings are expected to grow by 15-20% in 2018-2019 according to JM Financial. Nevertheless, according to a report by NASSCOM, India has reserved its position as the 3rd largest startup base in the world, with over 4,750 technology startups and 1,400 new startups being founded in 2016.

Problem Statement:
Research Problem:
Understanding the impact of poverty on Human Development Index in India between 2011 and 2017.

Research Objectives:
This research aims to:
Identify the reasons behind the growth of poverty rate in India
Identify the obstacles that India faces to overcome poverty
Identify the causes of poverty in India.

Identify how the reduction of poverty affects Human Development Index in India.

Research Questions:
How does poverty affect the Human Development Index in India?
What are the causes of poverty in India?
How does the reduction of poverty rates affect the Human Development Index in India?
How does the Indian government respond to the increase in poverty rates?
What are the obstacles that India faces to overcome poverty?

Literature Review:
Causes of poverty in India:
Poverty in India is caused mainly because there is a lack of economic opportunities in India and the country has limited access to available economic opportunities, which is caused due to inefficient human capabilities and the lack of safety nets to minimize vulnerability to economic shocks.

Limited Economic Opportunities:
Low Agricultural Productivity
Limited non-agricultural job opportunities
Half of India’s workforce is mainly involved in agriculture, which makes up 14% of India’s GDP which explains its low productivity levels, hence limited income earning opportunities the level of productivity in the agricultural sector in equal to 29% of the labor productivity nationally. Furthermore, there are many nonagricultural sectors with high productivity levels that have limited job opportunities for unskilled and semi-skilled workers.

The manufacturing sector, employs 11% of India’s workforce which increase India’s GDP by 16%. Moreover, around 80% of manufacturing workforce is employed in the informal sector, where the organization size is too small to benefit from the productivity ; the productivity ; earnings are low. While in the formal sector manufacturing private investment has been concentrated in capital and skill intensive sectors and has overcame the labor intensive sub-sectors.

Limited Access to Opportunities:
Human capital accumulation
There are many causes that could limit efforts to rapidly reduce poverty such as poor nutrition, and health ; education, concerning health, poor hygiene mainly affect health hence affects people’s skills and productivity levels in negative ways. As a result, India is going through a serious skills deficiencies which has resulted in higher unemployment.

Vulnerability to Economic Shocks:
The informal sector in India involves most of its working population, which makes them work without social security benefits and medical coverage which leads to vulnerable economic and health shocks. Health shocks and health care expense are from the main reasons why people fall into poverty. Due to limited opportunities the level of unemployment of youth in rural agricultural sector has increased hence safety nets are required until they find productive employment.

Chapter 4: Government efforts in developing the economic situation in India:
4.1: What are the procedures that the government take to reduce poverty in India?
The government’s persisted commitment to poverty reduction is reflected in the goal of inclusive growth that’s a pivotal function of the twelfth five year Plan. Poverty occurrence is focused to be decreased by using 10 percentage points by 2017.

The governmental approach to reduce poverty focuses on:
Making economic opportunities to poor people by making them use their efforts to improve productivity in agriculture, and manufacturing sector. The government also strengthens India’s infrastructure development through targeted initiatives such as Bharat Nirman (a time-bound government program focusing on the availability and accessibility of public services such as water supply, electricity, and roads in rural areas).

The government improves the population ability especially their disadvantage to access economic opportunities through livelihood improvement programs; health and nutrition programs, also programs that make sure of safe drinking water and better sanitation such as Nirman Bharat Abhiyan, lastly education and skills development programs such as the Right to Education and the 2009 National Skill Development Policy.

Government provides safety nets via especial social protection schemes, and the National Social Security Fund for unorganized sector workers; meals and dietary protection through the National Food Security Act; and livelihood safety applications,
The government provides all this to protect poor from various types of shocks.

To make sure the government’s centered strategy leads to the meant outcomes, the Twelfth Five Year Plan advocates reforms in implementation structures, by use of techniques such as total pleasant administration and statistics technology-related tools, better coordination amongst ministries, strengthening of nearby institutions, capability building, professionalization of public service delivery, partnership with civil society, and an emphasis on social mobilization.
The Unique Identification Project will grant a special identification for each resident of India; it has the potential to increase the efficiency of welfare service delivery and could be an effective tool for monitoring government schemes and programs.

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