DEPARTMENT OF COMMERCE I BCOM AF SEM:I (ODD) YEAR:2019-2020

COURSE : agricultural economics of India

Google classroom code : cv0hzv / zntf013

Hours : 8-9
FACULTY : R.RAMYA

SYLLABUS FOR UNIT-I

Features of the Indian Rural Economy – Place of Agriculture – Causes for Low Productivity –
Rural Poverty – Agriculture: Special Features and –Place of Agriculture in Indian Economy-
Causes of Backwardness – Measures for the Development of Agriculture- Process of
Agriculture during the plan period.

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SNAP
TALK/ATTENDANCE:

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Lecture – Agenda

RURAL POVERTY

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The biggest obstacle for the developing WORLD

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What is Poverty ?
 Poverty refers to the condition of not having the means to
afford basic human needs such as clean water, nutrition,
health care, clothing and shelter
 Poverty is the condition of having fewer resources or less
income than others within a society or country, or
compared to worldwide averages
 Poverty is the world at its worst when people are deprived
of basic everyday things that we everyday take for
granted like food, water shelter, money, and clothes
 It indicates a condition in which a person fails to maintain
a living standard adequate for a comfortable lifestyle

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Poverty – According to
UN
“Fundamentally, poverty is a denial of choices and opportunities, a
violation of human dignity. It means lack of basic capacity to
participate effectively in society
It means not having enough to feed and cloth a family, not having
a school or clinic to go to, not having the land on which to grow
one’s food or a job to earn one’s living, not having access to credit
It means insecurity, powerlessness and exclusion of
individuals, households and communities
It means susceptibility to violence, and it often implies living on
marginal or fragile environments, without access to clean water or
sanitation”

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Hunger

Can’t Work
Lack of
education
Disease
Poverty

Fewer job
opportunities

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Types of Poverty
Poverty is generally of two types:
(1) Absolute Poverty
(2) Relative Poverty

Absolute Poverty :
 Itrefers to the state of severe deprivation of basic human
needs
 Itrefers to the measure of poverty, keeping in view the per
capita intake of calories and minimum level of consumption.
 Per capita income : National income/ Population
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Types of Poverty
Relative Poverty :
 Under Relative Poverty the economic conditions of
different regions or countries is compared.
 It is defined contextually as Economic inequality
in location or society in which people live.
 The capita income and the national income are the
two indicators of relative poverty.
 According to UNO those countries are treated poor
whose per capita income is less than US $725 per
annum.
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Poverty line

 The poverty threshold or poverty line is the minimum

level of income deemed adequate in a given country.
 In practice, like the definition of poverty, the official
or common understanding of the poverty line is
significantly higher in developed countries than in
developing countries.
 The common international poverty line has in the past
been roughly $1 a day.

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Poverty line

 In 2008, the World Bank came out with a revised figure of

$1.25 at 2005 purchasing-power parity (PPP).
 Determining the poverty line is usually done by finding the
total cost of all the essential resources that an average
human adult consumes in one year.
 The largest of these expenses is typically the rent
required to live in an apartment, so historically,
economists have paid particular attention to the real
estate market and housing prices as a strong poverty line
affecter.

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Causes of poverty
 Lack of education
 Large Scale Import
 Division of Agricultural land
 Moral Culture
 Government Policies
 Corruption
 Privatization
 Overpopulation
 Unemployment

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Causes of poverty
 Law and Order
 Increase in Utility Charges
 Inflation
 Imposition of Taxes
 Non-Productive Expenditures
 Low Living Standard
 Landlordism
 Nepotism
 Backward Infrastructure

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Effects of poverty

 Child labour
 Crimes and violence
 Health Problems
 From a moral and religious values
 Homelessness
 Shorter lives
 Children antisocial behaviour
 Hunger

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Solutions of poverty

 ENSURING RESOURCES FOR POOR

 BY EMPOWERING THE POORS
 EQUAL ACESS OVER MARKETS
 INCREASING AGRICULTURE
 DEVELOPMENT IN CONSTRUCTION
 ROLE OF MICROFINANCE

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Solutions of poverty

 HEALTH FACILITIES
 POVERTY ELIMINATING PROGRAMMES
 ECOCOMIC GROWTH
 EDUCATION
 POPULATION CONTROLLING
 DEVELOPMENT OF AGRICULTURAL LAND

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Poverty Elimination
Programs
 Swarna Jayanti Gram Swarozgar Yojana (SGSY)
 Sampoorna Gramin Rozgar Yojana (SGRY)
 Prime Minister’s Rozgar Yojana (PMRY)
 Swarnajayanti Shahari Rozgar Yojana (SSRY)
 Pradhan Mantri Gramodaya Yojana (PMGY)
 National Rural Employment Guarantee Act(NREGA)

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MCQ
1. _____________ indicates a condition in which a person fails to
maintain a living standard adequate for a comfortable lifestyle
2. ____________refers to the state of severe deprivation of basic
human needs
a. Relative poverty
b. Absolute poverty
c. Both A & B
d. None of these
3. Under __________Poverty the economic conditions of different
regions or countries is compared
e. Absolute poverty
f. Relative poverty
g. Both A & B
h. None of these
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MCQ ANSWERS

1.Poverty
2.Absolute poverty
3.Relative poverty

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Important Questions

1. write a short note on poverty.

2. Differentiate absolute poverty and relative poverty.
3.Write the measurements of poverty.
4. Explain about the poverty line.
5. what are all the Causes of poverty and Effects of
poverty?

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Summary of next Class

Causes of Backwardness

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