Q.9:- Illustrate the difference between rural and urban poverty. Is it correct to say that poverty has shifted from rural to urban areas? Use the trends in poverty ratio to support your answer.
The difference between rural and urban poverty is the nature of poverty. In rural areas, poor people are those who are landless agricultural labourers, small and marginal farmers. While in urban areas, poor people are those who are unemployed, underemployed or employed in low productivity occupation with low wages.
|Rural (%)||Urban (%)||Total (%)|
|2004-05 comparable with 1993-94||28.3||25.7||27.5|
|Estimates Source : Planning Commission Estimates (Uniform Reference Period)|
Yes, it is correct to say that poverty has shifted from rural to urban areas. Above data show that rural poverty has declined significantly from 56.4% in 1973-74 to 28.3% in 2004-05 whereas decline in urban poverty (from 49% to 25.7%) is not that significant. Further, the gap between the rural and urban poverty ratios which was around 7% in 1973-74 fell to just around 2% in 2004-05 again signifying the shift in poverty from rural to urban areas.